Publiceret: 16.01.2018Af Felix Bekkersgaard Stark mail
As the saying goes, a rising tide lifts all boats. When it comes to consumption in Europe, this means that when Europeans have more money to spend, it also boosts sales figures at Danish companies. Such is the conclusion of a new analysis from DI, which shows that when citizens in the EU increase consumption by 1 per cent, Danish exports of consumer goods to the EU are typically boosted by just over 0.9 per cent.
“In 2018, we expect consumption in the EU to increase by 3 per cent. That will cause a nearly equivalent rise in Danish exports, and we therefore expect Danish companies’ exports to increase by DKK 4.5 billion in 2018,” says Senior Analyst Allan Sørensen, DI.
Among the companies that expect to benefit from European optimism in 2018 is Hudevad Radiators, which manufactures and sells radiators in Denmark and many other European countries. In Denmark, sales of the company’s cheapest models are stagnating in favour of its luxury models. For many foreign customers, however, the cheapest models are considered a luxury.
“At home, we expect sales of the most expensive models to increase by about 15-20 per cent annually, and in our European markets, we expect the same growth for both luxury models and the cheaper models, which many of our European customers consider luxury goods in comparison to the radiators they are used to at home,” says Head of Sales and Marketing Jesper Friis, Hudevad Radiators.
One of the ways in which Hudevad Radiators expects to increase European sales is through e-commerce. The company has just launched a test version of its online shop in Danish, German and English respectively.
“We have a really effective partner in the German market, so the German version is not actually aimed at Germans, but primarily customers from Eastern Europe, Switzerland and Austria, to whom we also expect to increase sales,” says Jesper Friis.
He finds that English is generally accepted as the language of business online.
“The market segment we are appealing to are generally well versed in foreign languages. In the cases where they are not, Google Translate does the trick,” says Jesper Friis.
For the past three years, Danish “lighting, heating and sanitary ware” as well as “glasses, watches and photographic and optical goods” have sold particularly well on the European market.
In the first category, exports have increased by an impressive 44 per cent in three years, from DKK 1.9 billion in 2013 to DKK 2.8 billion in 2016. The second category has grown almost just as much in the same period percentage-wise, but in terms of kroner this only amounts to an increase of DKK 361 million.
“When you’re dealing with percentages, you always have to remember to look at the numbers behind the increases, and if you look at how much exports have increased in terms of kroner, it is particularly sales of clothing and medicine that impress. In both categories, exports have increased by about DKK 5 billion, but translated into percentages, this ‘only’ constitutes an increase of 25 per cent (clothing and accessories - ed.) and 17 per cent (medicinal and pharmaceutical products - ed.) respectively,” explains Allan Sørensen.
He notes that the greatest obstacle to export success for companies may prove to be a lack of hands to perform the work.
“Many Danish companies have trouble finding the necessary labour, which may mean they are forced to turn down orders. Labour shortage in one company can also impede growth for other companies if they are dependent on subcontracting. The parliament should therefore make it a priority to create reforms that can remedy the labour shortage,” says Allan Sørensen.
Many Danish companies have trouble finding the necessary labour, which may mean they are forced to turn down orders.