PORTUGAL: HOW TO ENTER THE MARKET Andrea Petrić, Croatian Chamber of Economy 19th February 2018

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1 PORTUGAL: HOW TO ENTER THE MARKET Andrea Petrić, Croatian Chamber of Economy 19th February 2018

2 MAJOR IMPORT COUNTRIES Total imports 2016: 61.2 bil. EUR Country % Spain Germany France Italy Netherlands UK China Belgium Brazil

3 MAJOR IMPORT PRODUCTS Product %% Vehicles and parts, other than railway and trams 12 Mineral fuels, mineral oils and products of their destilation 10 Boilers, machinery and mechanical appliancies and parts 9 Electrical machinery and equipment Plastics and articles Pharmaceutical products 4 Iron and steel 3 Fish and other sea food products 3 8 5

4 REACHING THE CONSUMER Total Number of Households (in million) Average Size of the Households Percent of Households of 1 Person Percent of Households of 2 Persons Percent of Households of 3 or 4 Persons Percent of Households of 5 Persons and More Persons 21.4% 31.6% 40.5% 6.5%

5 REACHING THE CONSUMER Household Final Consumption Expenditure Household Final Consumption Expenditure (Million USD, Constant Price 2000) Household Final Consumption Expenditure (Annual Growth, %) Household Final Consumption Expenditure per Capita (USD, Constant Price 2000) Household Final Consumption Expenditure (% of GDP) , , , ,874 14,251 14,

6 REACHING THE CONSUMER Consumption Expenditure in Portugal by product category as % of total expenditure (2016) Housing, water, electricity, gas and other fuels 24.2% Food and non-alcoholic beverages 18.9% Transport 10.0% Recreation and culture 7.7% Alcoholic beverages, tobacco 6.5% Furnishings, household equipment and routine maintenance of the house 4.5% Health 4.4% Clothing and footwear 4.2% Communication 2.9% Restaurants and hotels 2.8% Education 1.2%

7 CONSUMPTION IN PORTUGAL Growing sectors: IT services, sectorial software (medical, transport, etc.) travel and tourism products and services for senior citizens telecommunications books automobile parts cosmetics education services high value added textiles top range footwear

8 CONSUMER BEHAVIOUR Social status and brand names are significant for clothing, fashion items and cars. For consumables, such as food and hygiene products, price is a major factor. Consumers are returning to small, neighbourhood shops, because they offer proximity, convenience, personalised service and fresh and local products. Another trend is growing consumer interest in omni-channel retailing that combines Internet sales with physical shops.

9 Number of retail chains in Portugal in 2016, by sector Fashion & Clothing Furniture Decoration Home Ware Footwear Leather Consumer Electronics Personal Care Toys Games Baby Ware Food Sport Leisure Car Parts Accessories Optical Jewellery Watches DIY Gardening Telecom Books Magazines Petrol Pet Care Total

10 APPROACHING THE MARKET You can approach the Portuguese market in several ways: export directly set up an agency appoint a distributor form a joint venture manufacture under licence acquire all or part of a Portuguese company In the case of direct exports, you are advised to have a local representative either on a commission basis, or as an importer or distributor. Personal contact with potential and existing clients and regular visits to the market are very important.

11 Future investment The government is planning many projects to be carried out by The biggest investment is planned for infrastructure, especially transport. Around 85% of funds are allocated to railways and ports: 2.8 billion EUR into railways 1.5 billion EUR into ports 800 million EUR into roads and airports

12 BUSINESS CULTURE IN PORTUGAL Greet with a firm handshake, a smile and a lot of enthusiasm. Exchange business cards at the end of the meeting, never at the beginning. Don t be too punctual. Portuguese don t consider time as a strict fact. It s actually rude to be on time, arrive 5 to 20 minutes late. Be informal at the first encounter, but refrain from asking personal questions. Portuguese are very proud of their culture, so compliment the country or their food e.g.

13 BUSINESS CULTURE IN PORTUGAL It s common to receive gifts from your host, normally already unwrapped. Show your appreciation, and in addition send a thank you note after the meeting. Send a follow up letter after a business meeting with the minutes including the key points and commitments to ensure an effective next meeting. Portuguese value a trusting relationship as much as a signed contract. Doing business in Portugal is time consuming, don t rush it. For example, a business lunch could take all afternoon.

14 CROATIA PORTUGAL Trade (2016) = 74.8 Mio Eur (+17%) Cro export to Portugal: 50.7 Mio EUR (+5%) Cro import from Portugal: 24.1 Mio EUR (+54%) 0.4% of total Croatian export (32th export partner) 0.1% of total Croatian import (44th import partner) partner) mil. EUR Export Import Total Saldo

15 Croatian exports to Portugal: articles of leather (26%) socks (21%) medicaments (7%) underwear (6%) machinery for processing rubber or plastics (5%) Croatian imports from Portugal: uncoated paper and paperboard (17%) new pneumatic tyres (15%) meat of swine (5%) leather (4%) motor vehicles for the transport of ten or more persons (4%)

16 Millions Thousands PORTUGUESE TOURISTS IN CROATIA Economic relations tourism No. of arrivals of Portuguese tourists ,06 0,05 0,04 0,03 0,02 0,01 No. of overnight stays of Portuguese tourists Tourism (2017) ,879 Portuguese tourists = +30% 121,464 Mio overnight stays = + 21% 0.12% of total foreign tourist overnight stays 2.4 days average stay

17 HOW CAN WE HELP YOU FIND A BUSINESS PARNER?

18 BUSINESS DELEGATIONS AND B2B MEETINGS Trade missions and brokerage events home and abroad business delegations 8,593 participants ANNOUNCEMENT: Visit of Croatian business delegation to Portugal 11th May 2018

19 MORE CCE SERVICES: Trade fairs Brockerage events List of potential business partners Partnering opportunities database Public tenders tenderi.hgk.hr

20 CROATIAN CHAMBER OF ECONOMY Sector for International Affairs and EU Tel.: Fax: Rooseveltov trg Zagreb, Croatia eoi@hgk.hr; apetric@hgk.hr ww.hgk.hr

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