Doing
Business in Denmark
Agents/Distributors - Finding a Partner
Modern communications have eliminated numerous barriers, but
many Danish companies still prefer to deal with an established
local agent or distributor, rather than buying directly from
abroad. The Danish agent/distributor community has developed
over centuries and is today a select and competitive group
of businesses. Many sectors are dominated by a few powerful
and quite conservative companies, which have spent decades
establishing lasting relationships with their clients. There
is now some slow movement toward direct purchasing, especially
from European suppliers. This trend is especially evident
in the food business, where the larger retail chains maintain
in-house import divisions. At the same time, there is an increasing
trend for foreign companies to establish branch offices in
Denmark. Where a company does not wish to establish its own
sales office in Denmark, it is advisable to seek a local agent
or distributor.
Selling Factors/Techniques
The factors that determine where importers place their orders
are almost entirely commercial, although cultural/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. Danes do not change suppliers easily and many commercial
relationships have been maintained over decades. Export companies
seeking only a fast buck have very little chance of success.
Pricing a Product
Exporters usually quote c.i.f Copenhagen prices to Danish
importers. The c.i.f. price includes all domestic freight
costs, ocean/air freight and insurance but not Danish import
duty or VAT. The rate of duty ranges from 5 to 14 percent
on industrial products. Additionally, the importer must pay
a 25% Value Added Tax (VAT) calculated on the landed (c.i.f.)
cost plus the duty. VAT applies on a non-discriminatory basis
to all products sold in Denmark, whether imported or produced
locally. There are also heavy surtaxes on a number of "luxury"
consumer items, such cigarettes and tobacco, alcoholic beverages,
oil and gasoline, and automobiles.
Business Hours
Businesses
Common hours between 8:00 a.m. and 5:00 p.m.
Shops
Generally 9:00 a.m - 6:00 p.m. during the week.
Thursday or Friday until 7:00 or 8:00 p.m.
On Saturday until 12:00 a.m. or 2:00 p.m.
The shopping hours are flexible and may vary.
Banks
Most banks are opened Monday-Wednesday,
Friday 9:30 a.m. - 4:00 p.m.
Thursday: 9:30 a.m. - 6:00 p.m.
Some Useful Sources of Information
Markets and Sectors
http://tradeport.org/ts/countries/denmark/sectors.html
http://www.investindk.com/profiles/profiles.html
Market Access
http://www.tradeport.org/ts/countries/denmark/market.html
Investment climate
http://www.tradeport.org/ts/countries/denmark/climate.html
http://www.investindk.com/facts/nyefacts/labourmarket.htm
http://www.investindk.com/facts/nyefacts/labourcost.htm
http://www.investindk.com/facts/nyefacts/business.htm
http://www.investindk.com/facts/nyefacts/education.htm
http://www.investindk.com/facts/nyefacts/logistics.htm
Other Sources of information
Information about Denmark
http://www.city.net/countries/denmark/
Clickable map of Denmark
http://www.denet.dk/dkmap.html
Statistics Denmark
http://www.dst.dk/internet/startuk.htm
Invest in Denmark
http://www.investindk.com/default.htm
Denmark in figures
http://www.um.dk/danmark/om_danmark/figures.html
Hotels and Travel in Denmark
http://www.hotelstravel.com/denmark.html
Danish Electronic Commerce Journal
http://www.ebutik.com/journal/
The Denmark Times
http://www.um.dk/nyt/tdt/
The Copenhagen Post (News In English)
http://www.cphpost.dk/
