Expand your business into Europe in 2022
Planning for export success in Europe in 2022 requires a strategic approach to overcome challenges and capitalize on available opportunities. This Exportia Lab session focused on the lessons learned over the past two years and how businesses can adapt to the evolving European market. The session covered seven key pillars that exporters must focus on: product compliance and sustainability, customer engagement in a digital-first environment, country-specific economic trends, managing distribution networks, effective marketing strategies, cautious hiring for sales teams, and setting realistic sales targets.
In terms of product strategy, businesses must ensure they meet European compliance requirements while addressing new challenges related to supply chain reliability and sustainability. European manufacturers are increasingly looking for stable suppliers as they face shortages in raw materials, including plastics, wood, and microchips. There is also a growing trend of reshoring, where businesses prefer sourcing from closer markets instead of relying heavily on Chinese suppliers. Exporters must demonstrate their ability to provide stable supply and highlight their sustainability efforts in line with the EU Green Deal, which aims to reduce greenhouse gas emissions by 55 percent by 2030.
Customer engagement is shifting towards digital-first sales, with limited face-to-face meetings expected to continue in 2022. Exporters should maintain direct contact with end users, even if they work through distributors, to ensure visibility in the market. A diversified customer base across multiple industries can help mitigate risks associated with economic fluctuations. Companies must be prepared for remote onboarding of new customers, digital training, and customer support. Online product demonstrations and webinars will remain essential tools for sales engagement.
Economic trends in Europe indicate moderate growth for 2022 and 2023, with no major disruptions expected. The European Union’s increasing vaccination rates and adaptability to restrictions have contributed to economic stability. However, the United Kingdom is still adjusting to the impact of Brexit, leading to labor shortages, regulatory changes, and cautious distributor behavior. Businesses considering the UK market should closely monitor these developments before committing to long-term strategies.
Sales channels and distributor management remain critical for market entry and expansion. Distributors act as an extension of the sales team and help businesses establish their presence in local markets. Many traditional distributors struggled to transition to digital selling, while larger national distributors and multi-industry players adapted better. Smaller, agile distributors that embraced online marketing and hybrid sales models have also performed well. Businesses should thoroughly vet potential distributors, conduct financial stability checks, and avoid including volatile freight costs in their agreements.
Marketing strategies in 2022 must incorporate both digital and traditional elements. Face-to-face trade shows have resumed in Europe, but businesses should have a digital backup plan in case of restrictions. While digital congresses generate fewer direct leads than physical events, presenting research or case studies can increase brand visibility. Lead generation campaigns through email, phone outreach, and social media marketing continue to be effective. Companies should also focus on optimizing their website content and using online demonstrations to engage potential customers.
Hiring full-time sales teams in Europe comes with risks due to strict labor laws and ongoing uncertainty. Instead of recruiting immediately, businesses should leverage distributors, sales agents, or outsourced European sales teams to maintain flexibility. Once a strong market presence and sales traction are established, hiring can be considered as a long-term investment.
Setting realistic sales targets is essential, as 2022 presents growth opportunities but also ongoing uncertainties. Businesses should take a conservative approach when forecasting sales, unless they operate in high-demand industries. Regular monitoring of distributor performance and market conditions will help businesses adjust their strategies as needed.
To prepare for success in 2022, exporters should reassess their supply chain reliability, ensure their sales processes are optimized for remote engagement, carefully select and manage their distributors, implement a hybrid marketing strategy, and maintain flexibility in hiring decisions. As a challenge for attendees, businesses should identify a European trade show or digital congress in their industry where they could present or promote their products.
Despite ongoing challenges, Europe remains a strong market for exporters who can position themselves as reliable suppliers, adapt to digital sales strategies, and leverage partnerships effectively. Companies that take a proactive approach and align their strategies with market demands will be well-positioned for success in 2022. If additional support is needed for entering the European market, businesses may consider working with experienced European sales and marketing teams to navigate the complexities of expansion.