• The factors that determine where importers place their orders are almost entirely commercial, although cultural and historical or social ties with a long-standing trade partner may play a role. General competitive factors such as price, quality, promptness of delivery, and availability of service determine the success of a supplier in Denmark. Patience and commitment count. Danish firms do not typically change suppliers easily, and many commercial relationships have been maintained over decades. Export companies seeking only quick, short-term returns have a reduced chance of success in Denmark.
• Most New-to-Market companies launching a product in Denmark should expect fierce competition from domestic, third country, and often U.S. companies that are already well-established in the Danish market. In many cases, local distributors or agents will either decline taking on the representation of a new product line, or alternatively, request a substantial financial contribution towards market entry costs. Consequently, the best, or sometimes even the only way for a New-to-Market company to enter the Danish market can be through establishing its own sales office.
• It is critical for U.S. exporters to understand regulatory compliance before approaching a Danish distributor because Denmark’s regulations, which are aligned with the broader European Union (EU), can be significantly different from those in the United States. A distributor is a partner, not a regulator, and will expect the exporter to have already done their due diligence. Failing to comply with Danish and EU standards can lead to costly delays, fines, and rejection of goods at customs, which in turn can damage the exporter’s reputation and strain the business relationship with their distributor. Knowledge of these regulations, including everything from product safety and labeling requirements to customs duties and VAT, demonstrates professionalism and ensures a smooth, efficient entry into the market.