How to avoid the five common export pitfalls

For many years, our experts have supported Norwegian companies of all sizes as they establish themselves abroad. Over time, we have identified recurring patterns in the challenges companies may face in international markets.

To help you and your company approach export markets with confidence and a long-term perspective, we asked some of our experts to identify five of the most common pitfalls.

Falling into one of these traps does not necessarily mean it is all over, but it can cost your business dearly – in lost opportunities, time and money.

‘Your company needs more than the willingness and ability to export – it also needs to be ready,’ says Knut Sørlie, Special Adviser and our former Director for China. He describes China as a prime example of a challenging market where it is easy to make mistakes, especially if you have not prepared thoroughly. For example, you do not want to find yourself short of internal resources when an opportunity suddenly arises. Worse still is being unable to deliver once you get the go-ahead.

'Targeting such a large market is quite demanding. You need to stay focused, because China is practically a continent,' says Sørlie.

He advises aspiring exporters to develop solid export plans, particularly for marketing and e-commerce. Our Export Centre is a good place to start. Our advisors there can also put you in touch with our international offices in the markets you are interested in.

‘The key is to professionalise your internal export organisation,’ says Sørlie.

– Because it cannot be a one-off stunt. An export initiative must be long-term.

'It is all too easy to rush into working with a partner. You find a partner abroad, but may not have carried out a thorough background check. That can have serious consequences,' says Knut Sørlie.

Building sustainable partnerships in new markets can be challenging. Before you enter into a relationship with an international business partner, you should consider several factors that will shape the partnership: What is my business model? How much control do I want to retain over my own product? Do I need an agent or a partner to handle parts of the production process?

In the long run, investing more time in preparation can save you a great deal of time. This is particularly true when you have thousands of potential agents, companies and manufacturers to choose from, as you do in China.

‘Then you should talk to someone who knows the local market. In this kind of situation, our international offices can help you by carrying out background checks on potential industry partners, for example,’ says Sørlie. Checking with people who understand the local market first is an inexpensive safeguard. Even large companies with extensive resources can make mistakes.

'Norwegian companies sometimes take too long to respond to enquiries and follow up with new contacts, and that can be a cardinal sin. Letting things drag on is the surest way to lose leads,' says Øyvind Enstad Haga, head of our office in Canada.

Speaking by phone from Toronto, Haga explains that business cultures in most other countries tend to be more proactive than we are used to in Norway. When entering a new market, it is essential to remember that your company is starting from scratch in terms of reputation. Your company may be well regarded in Norway, but in new markets, you are likely to be an unknown quantity. Norwegian culture is transaction-based and direct, while other cultures are relationship-based. You therefore need to understand how to build trust and networks.

Through us, your company can take part in workshops on international market development. Our offices around the world can also provide valuable insights into local conditions, helping you get your export venture off to a strong start.

‘Building trust over time is important. You need to show that you are serious and committed to a market for the long term, rather than just making a quick sale and then leaving,’ says Haga.

– That is why we recommend not entering too many markets at once. For many Norwegian companies, focusing on one market at a time is more than enough.

‘One export pitfall I would highlight is a lack of customer and market focus,’ says Elisabeth Svanholm Meyer, Executive Vice President for Strategic Positioning, Tourism and Special Assignments. She previously headed our office in Milan. Meyer believes Norwegian companies tend to focus too heavily on their products when expanding abroad. As a result, they invest too few resources in understanding customers, competitors and trends. Meyer stresses that no product sells itself, however technically advanced it may be. To compete successfully, you need to build awareness of your product, make it appealing and ensure it is readily available. This all starts with an in-depth understanding of your customers. If you rely solely on your experience of the Norwegian market, you can easily go wrong.

‘Most people are familiar with the macroeconomic conditions in the markets they plan to enter, but you need to understand what influences purchasing decisions in your segment. Not everyone is like us Norwegians, so you need to tailor your marketing to each market,’ says Meyer.

To help you avoid this export pitfall, we have developed a competence-building programme in strategic positioning and a framework for building Norway's national brand, Brand Norway.

‘One factor that can cause problems for Norwegian companies is a lack of international experience. This includes both technical challenges related to international trade and cultural differences,’ says Eirik Henriksen, internationalisation adviser at our Eastern Norway office. Henriksen explains that Norway has fewer people with experience of working for international companies than countries such as Switzerland. A lack of international experience can create challenges for companies entering new markets, particularly when establishing themselves in business cultures where relationships play a more important role.

Exporting and expanding internationally require your company to invest time and resources in positioning itself, as well as capital. We can provide loans to support growth, scaling and internationalisation, while helping you maintain momentum and reduce the time it takes to bring a product to market.

Through our international offices, we can help Norwegian companies find the right centres of expertise and business partners. We also offer workshops on international market development, guiding you through every factor that could affect your company's export strategy.

'We have an extensive network and the expertise to match. These are two of our key strengths,' says Henriksen.