Denmark Market Entry

Denmark Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

According to cheeroutdoor.com, the Danish economy is open, after all it is part of the single market of the European Union. Therefore, there are no administrative or legislative obstacles preventing Czech companies from entering the Danish market. This applies both to the possible building of a physical representation of a Czech company in Denmark using one of the methods mentioned in the following chapter, as well as to the Danish localization of Czech business websites or e-shops.

Forms and conditions of operation on the market

There are several ways to break into the Danish market:

  • joint venture
  • direct cooperation with the end customer
  • standard cooperation with the importer
  • appointment of a representative (exclusive – non-exclusive, for commission)
  • branch establishment
  • franchising

Distribution channels depend on the type of goods. Investment goods for production consumption and mineral raw materials are most often sold through a sales representative. Specialized high-tech commodities are usually supplied through larger sales representatives who have adequate service facilities. For consumer goods, agents mostly operate, but direct deliveries to department stores and chains are increasingly preferred. This growing tendency applies especially to food, where there are several strong retail chains with their own import and distribution department (about 30 major food importers).

Although there has been a tendency to strengthen direct sales (especially imports from EU countries) in recent years, many Danish companies prefer mediated deliveries to direct imports from abroad if it is a well-functioning business connection with a certain tradition. The success of market penetration is determined by the purely commercial aspect of the offer, but Danish companies generally do not like to change their suppliers.

Franchising is a possibility, but so far there are few such cases (groceries, shoe repair shops, car rental shops). Door-to-door sales are prohibited by law. Direct marketing (ordering service from a catalog, etc.) is gradually developing.

Marketing and communication

Adequate promotion is more or less a necessity, but it depends on the type of goods and the form of business connection. Among the most effective types of advertising are newspaper advertising in the three main national newspapers and in the economic daily:

  • Politiken (www.politiken.dk)
  • Berlingske (www.berlingske.dk)
  • Jyllands-Posten (www.jp.dk)
  • Boersen – newspaper with an economic theme – similar to Hospodářské noviny (www.borsen.dk)

Due to the high level of Internet use in the country, especially companies with their own website can include information about the company and a corresponding link to one of the important portals. In the long term, the most visited portals are www.google.dk and www.yahoo.dk. Another effective way is advertising on social networks (LinkedIn, Facebook).

Comparative advertising is in principle permissible, but only if there are demonstrable material differences. The regulations are contained in the Act on Unfair Competition (markedsforingsloven).

Issues of intellectual property protection

In Denmark, a sufficient level of protection of intellectual property rights is guaranteed. Denmark is a member of WIPO (World Intellectual Property Organization), adheres to the Paris Convention on Industrial Property, has ratified the European Patent Convention and the EU Patent Convention, as well as the Strasbourg and Budapest Conventions. In the field of copyright, Denmark is a party to the World Copyright Convention of 1952 and its amendment in 1971, and has also acceded to the International Convention for the Protection of Creative Works (1961) and the Convention on Producers of Phonograms (1971).

In the field of trademarks, Denmark is a member of the Nice Regulation of 1957 and its revision of 1967. Otherwise, Danish legislation is harmonized with EU regulations on trademarks. Within the EU, Denmark promotes the creation of a unified trademark system.

The protection of economic competition is regulated by Act No. 384 On Economic Competition of 10. June 1997. In 2000, it was updated with an amendment regulating the control of mergers (Act No. 416 of 31/5/2000).

There are no known cases of violation of rights related to the protection of intellectual property within the bilateral relationship.

Public procurement market

Danish practice fulfills the requirements arising from the WTO/GATT Public Procurement Code and EU legislation: regulations 93/36/EEC, 93/37/EEC and 93/38/EEC. Any purchase that exceeds the value of DKK million must be preceded by a public tender. Danish state authorities make purchases worth approximately DKK 100 billion annually, with this value being divided approximately 50:50 between central authorities and regional (local) government authorities. A tender is being announced for approximately DKK 9 billion. Foreign companies win around 10% of all tenders. Most of these foreign companies come mainly from Germany or Sweden. When evaluating bids, environmental and energy efficiency criteria are just as important as issues of price, quality and delivery conditions. Public contracts are published both in the “Supplement to the Official Journal of the European Communities” and also in the daily LICITATIONEN (www.licitationen.dk). The documents are mostly in Danish.

Public contracts in EU countries are also available at http://ted.europa.eu/TED/main/HomePage.do, where information is updated daily. Public procurement notices can be browsed, searched and sorted by country, region, business sector and other criteria. Information on each procurement document is published in 23 official EU languages.

Purchasing for state authorities and public institutions in Denmark is provided by the company Statens og Kommunernes Indkøbs Service A/S (in loose translation State and Municipal Purchasing Service, as),

HC Hansen Gade 4
2300 København S
Tel.: 3342 7000
Fax.: 3391 4144
Web: www.ski.dk
E-mail: [email protected]

Purchasing organizations at all levels can use framework contracts, where the largest consumer enters into an agreement with one or more suppliers of the relevant type of goods.

Bids for the supply of material and services for the needs of the Ministry of Defense may be submitted exclusively through the Danish Defense Acquisition and Logistics Organization ( DALO ) or via an e-mail bid sent to the address [email protected] In the case of sensitive offers or offers subject to the degree of secrecy RESERVED and CONFIDENTIAL, the offers are delivered accordingly (registered mail or courier) to the address

Danish Ministry of Defense Acquisition and Logistics Organisation,
Lautrupbjerg 1-5
2750 Ballerup
Denmark

Payment terms, payment ethics and resolution of commercial disputes

Danish companies and businessmen are known for their fairness in business matters, in which “my word – my bond” applies to Danes.

Any disputes are conducted before official courts. In Denmark, there are 12 official courts of first instance, 2 District Courts and the Supreme Court. Up to a value of DKK 500,000, legal proceedings are initiated at the court of first instance based on the debtor’s seat. The decisions of the Danish courts are generally very lenient when it comes to compensation for damages and lost profits. The damage must be real and quantitatively documented. In Danish court practice, it is very difficult to obtain compensation for indirect damages.

In relation to payment ethics, caution is necessary for new business connections with partners not yet verified. The majority of Danish companies are small companies with a not very strong capital base, and in these cases the possibility of bankruptcy is real. The payment terms must correspond to this. For investment goods, normal procedures apply (advance, part payment upon delivery, covered credit).

Interest on late payment can be applied if it was stated in the purchase contract or on the invoice. The amount of interest depends on the agreement, and if there is no such agreement, interest on late payment is calculated at 6% above the discount rate of the Danish National Bank. If payment is not achieved by direct reminders and enforcement by the exporter, it is practically necessary to seek help from Danish lawyers.

The average invoice maturity period in Denmark is 38 days.

Visas, fees, specific conditions for traveling to the territory

Denmark is a member country of the European Union and part of the Schengen area, and for citizens of the Czech Republic, the rules of free movement of persons apply for trips to Denmark.

Travel documents for trips to the EU (including Denmark):

  • all types of valid passports, with or without machine-readable and biometric data,
  • all types of valid identity cards in the form of an identification card, with or without machine-readable data,
  • it is not recommended to use ID cards with a separate marked part (with a cut off corner), as this could be considered as marking invalidity or damage;

Greenland and the Faroe Islands:

Greenland and the Faroe Islands are autonomous parts of the Kingdom of Denmark, but are not part of the EU or the Schengen area. EU citizens can travel on tourist trips for up to 90 days without a visa with a valid passport (the Embassy does not recommend traveling with only an ID card).

Employment of citizens from the Czech Republic

As of May 1, 2009, citizens of the new member states, including the Czech Republic, can work in Denmark without a work permit if their employment contract and working conditions are in accordance with valid collective agreements on the Danish labor market. After starting work in Denmark, it is necessary to obtain a residence permit for EU citizens, which is issued by the relevant state administration office. More information can be found at: www.statsforvaltning.dk.

General information about the conditions of stay in Denmark: www.newtodenmark.dk, www.nyidanmark.dk

For the purposes of proper tax payments, it is necessary to obtain a tax card issued by the relevant tax office. More information on taxes and vehicle registration can be found at: www.skat.dk.

Companies that send workers to Denmark must register in the Danish Register of foreign companies that send foreign workers. More information can be found at: www.virk.dk/rut.

Further information can also be found on the website:

  • about work in Denmark,
  • actions on arrival,
  • job search in Denmark

The minimum wage institute, as we know it in the Czech Republic, does not exist in Denmark in Denmark (the wage is always the result of an agreement between the employer, worker and unions).

Fairs and events

The most important fairs and exhibition events in Denmark are held in Herning, Copenhagen, Fredericia, Vejle and Odense. A detailed current trade fair calendar can be found at https://10times.com/denmark

Important events include the agricultural technology fair Agromek (www.agromek.dk), which takes place once every two years in Herning. There is also interest in the HI fair (Herning Industri, www.hi.industri.dk), where Czech industrial subcontractors regularly present themselves. This fair, also held once every two years, should be part of the regular pro-export events of Czech companies in the future.

The Ferie for Alle fair in Herning (www.ferieforalle.dk/) and the Ferie Bella fair in Copenhagen specialize in the field of tourism.

Important fairs in Copenhagen and Herning include the Formland design fair (www.formland.com, held annually). Among the other “Copenhagen” fair activities, it is also possible to recommend participation in the Copenhagen International Fashion Fair (www.ciff.dk, annually, February and August).

Denmark Market Entry