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Why Denmark might be a great opportunity

Max Riis Christensen, CEO, MakesYouLocal.dk - 23 Jun-11
 
During the last week I have been in all the Nordic capitals and right now I am sitting in Helsinki writing this article. First of all, I think all the Nordic markets are attractive for the Nordic online shops; keep that in mind as I now try to sell you the Danish opportunities.
Annons
Let's start with the end, you should start selling online in Denmark because:

  • Danes are not that different from your home market in what they buy online. You can probably sell the same products and brands with minor adjustments for local culture.
  • Danes buy online and they buy a little more than the customers you have in your home market.
  • We are open-minded. Danes don't mind buying things from foreign companies if they have a professional approach, and of course you have.
  • The marketing discipline is not that different either and you can use the approach you know with a localized twist.

Further down in this article I have added some facts about Danish e-commerce.

For now I would like to tell you how to look unprofessional in Denmark, just so that you know what not to do.

  • Ask your Danish customers to give their personal id-number before you let them buy. Although you know it is a strictly personal number in Denmark.
  • Skip the Danish payment methods. What you have works in Sweden and the Danes will have to live with that.
  • Ask them to return products to your Swedish warehouse instead of setting up a Danish return address. It will cost them about 200 DKK to return the shirt. Would it be too much for you, if it was the other way around?
  • Make sure that Danes learn about local events and culture from your home market by sending out a translated version of your home market newsletter. Celebrate the Norwegian National day wearing this "I love Norway" t-shirt.
  • Answer the customer service calls and emails from Denmark in Swedish. They will understand, as well as you understand Danish. Try it here: Test your Danish.
  • And most importantly, decide to start up with what you have already and in a few months evaluate the results and figure out if it makes sense to translate and localize the shop.

Communicating with humour and satire is very common in Denmark and I have used it in this article as well. I hope it has been somewhat amusing and entertaining for you so far.

Below we have the facts, take a look and let me have some feedback.

Facts about e-commerce in Denmark:
  • The Danish e-commerce market is about 80% of the size of the Swedish market and is about 25% of the total Nordic market of 171 billion Danish Kroner.
  • There are only minor differences between the various Nordic online shoppers when you look at what kind of products they buy.
  • 71% of Danish online payments are made with payment methods which are not used in other Nordic markets: direct transfer to Danish banks 10%, Dankort card 61%.
  • Invoices are only used in 3% of the payments.
  • 47% of Danish "heavy users" often check prices through price comparison sites.
  • We have already reached 100% penetration of online shopping in the market segment between 25 and 29 years of age.
  • The growth of the online market is about 15% per year in Denmark.

We are ready when you are ready!

Hopefully this will inspire some you to look into the Danish opportunities and I will be more than happy to answer questions and discuss. Comments below please.

Max Riis Christensen
MakesYouLocal.dk

Max Riis Christensen

CEO, MakesYouLocal.dk

I am working with companies based in Denmark, Norway, Sweden, Finland, Germany, the Netherlands and UK preparing their entry into new countries. My focus is strategic consulting, outsourcing, market analysis and localization of web shop to local e-commerce culture and regulations.

 
 
KOMMENTARER
Stefan Ekmark
Marknadschef, Svea VAT Adviser AB

Hej Max,

Thx for a great article. I would like to get in touch with you. Can you please contact me at stefan.ekmark@vatadviser.se

27 Jun 2011 13:04
Igor Petersson
VD/Butikschef, Into Music Lund AB

Just a quick note.

As soon as the prices for shipment between our countries will be drastically lowered, perhaps it could be interresting.Today a single shipment, using one or more of the major shipment companies, is often double or triple the actual value of the product. A small or medium sized company can't really negotiate prices if they don't have the proven volume of transporting products.

19 Jul 2011 19:02
Stefan Pettersson
Tid. Business Developer

Igor, om du aldrig tidigare har varit DHL-kund så är deras erbjudande till våra PREMIUM-medlemmar helt otroligt bra fraktpriser, Läs mer på Bli Medlem-knappen uppe till höger.

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Om du inte är nöjd med de tjänster och förmåner du får som BAS- eller PREMIUM-medlem på Ehandel.org kan du säga upp ditt medlemskap inom 30 dagar och betalar då ingen avgift. Har du under dessa 30 dagar valt att utnyttja något av medlemserbjudandena från våra samarbetspartners och väljer att avsluta medlemskapet kommer priset på dessa erbjudanden att justeras upp till leverantörens normalpris.

19 Jul 2011 19:48
Alex Brownie
Developer, Ideaz Global

E-handel har udviklet sig meget bedre i de sidste par år. Du også kan eje en succesfuld e-handel site, når du får en effektiv script.

1 Feb 2013 04:17
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