Strong Purchasing Power Of The Nordics – But Localize Your Business
If you are a business owner looking to build customer loyalty and maximize profits, understanding the strengths of different global markets can be key to finding success. One such area is the Nordic countries – Iceland, Norway, Denmark, Finland, and Sweden. With strong purchasing power in various sectors, this region offers many opportunities for businesses of all sizes. However, it's important to remember that localizing your strategy is essential for successful market entry into these nations - as careful consideration must be paid to language barriers, customs & regulations, and cultural differences when doing business here. In this blog post, we will explore why the Nordic countries have become attractive investment destinations.
Strong purchasing power
Boasting 27 million inhabitants and a GDP of USD 1.5 trillion, the Nordic region is quite an economic force to be reckoned with! This powerhouse punches above its weight when it comes to GDP per capita - higher than any other EU country - while still representing just 5% of the total population among European Union nations. In fact, they're producing almost 10% of collective Europe's total Gross Domestic Product (GDP).
Boasting a population of 27 million and a GDP of USD 1.5 trillion that surpasses any other EU country. Ranking as the fifth largest economy in all European Union nations, the Nordic region is home to 5% of Europe’s total population yet produces 10% of its overall economic output.
The Nordic Region is an economic powerhouse, boasting one of the strongest Purchasing Powers in the world. With disposable income 20% higher than the European Union average, and a massive 78% lead on consumer spends per capita compared to all other EU countries combined, it's no wonder that this region stands apart from many others across Europe.
Rich and healthy, the Nordic countries are leaders in economic stability. With five languages spoken across their nations, it may come as a surprise that consumer preferences among these distinct cultures tend to be very similar to those of other European nations.
Swedish consumers imported goods worth around $150 billion in 2019, Denmark $99 billion and Norway $89 billion.
Environmentally conscious region
As environmental consciousness rises across the world, politicians and citizens in the Nordic region have taken proactive steps to protect their environment. Through strategic economic growth of 28%, they've managed to reduce CO2 emissions by a staggering 18% since 2000 - setting an example for other countries.
Furthermore, their strong commitment to renewable energy sources is especially impressive. In Finland, for instance, a whopping 30% of electricity production comes from renewable sources such as hydroelectricity and wind power. Denmark is no slouch either - with close to 50% of its electricity coming from renewables.
Their dedication to environmental sustainability has made them a beacon of hope in the international community. With careful planning and innovative solutions, their progress is a testament to how much impact a population can have on its own environment. The Nordic region stands as an example for the rest of the world on how to make sustainable progress without sacrificing economic growth.
Consumers in the Nordics are tech-aware
Nordic consumers are no strangers to being on the cutting edge when it comes to technology. Boasting Europe's highest rates of the Internet (97%) and Smartphone penetration (96%), they have proven themselves time and again as dedicated early adopters.
In the modern world of online shopping, Sweden has proven itself to be a player in this lucrative market. With average consumers spending close to 1000 euros every year on purchases ranging from groceries and books to dietary supplements and entertainment products, it is clear that any brand with an established presence here stands in line for significant returns.
Nordic consumers tend to be loyal
Choosing their favorites with confidence, the Nordic consumer is known for their loyalty to trusted brands. Researchers have identified that social proof plays a particularly strong role in influencing purchase decisions among these shoppers - more so than expert endorsements or promotional incentives such as free gifts.
This was revealed through an extensive study of realistic scenarios performed by Google and behavioral science experts The Behavioural Architects involving 310,000 simulations from 31 product categories using real consumers.
Best quality wins
Nordic consumers invest a great deal of deliberation into their online purchases, taking an average of two weeks and five separate searches to find the perfect item or brand. This presents newcomers with ample opportunity to win them over - as long as they provide top-quality products fit for careful consideration!
By taking a strategic approach to decision-making, emerging brands are now well-positioned to win over the discerning Scandinavian market. Although Nordic shoppers may not be traditional bargain hunters when it comes to locating products and services - research suggests they favor concise keyword searches for both digital and physical purchases - businesses can ensure their web presence caters directly to this unique preference.
Nordic consumers prefer information in their own language
Nordic shoppers seek a tailored experience; they prefer to receive product and service information in their native language. Providing localized content helps build trust with potential customers, boosting success across the region.
Nordic consumers demonstrate a clear preference for content in their native language, with 8 out of 10 preferring websites that use it over English. This is especially impressive given the high level of proficiency most Nordic citizens possess when it comes to speaking and understanding English.
Localizing your content is worth the effort
Nimdzi's research reveals that customers in the Nordic region are open to using products and services even when communication is only available in English; however, they prefer brands that make an effort to connect with them on a local level by providing localized versions of their content. Showing this extra commitment can be key to gaining consumer loyalty!
Nordic consumers are clearly receptive to advertisements that speak their language; the data indicates up to 9 out of 10 will not consider a product if it's not presented in their native tongue. Further, more than half of this high-value group express heightened interest when content is delivered through channels they can understand.
Shopping online has become a cornerstone of Nordic customers' lives - with two-thirds expecting crystal clear content and product information to be available in their native language. To stay ahead, businesses must focus on localized marketing efforts, from search terms through brochures and website reviews – making sure the correct message reaches the right audience.
Conclusion
The Nordic Countries - Denmark, Sweden, Norway, Finland, and Island - are a great opportunity for businesses because of the region’s strong purchasing power. Consumers in the Nordics shop online and have high loyalty to brands, meaning that if you can capture their attention, they are likely to stick with you. Additionally, since the Nordics are such an environmentally conscious region, sustainable practices will score points with consumers here. Finally, remember that when marketing to people in the Nordics it is important to localize your content to their language – although English is widely spoken, audiences still prefer information in their own tongue. Doing business in the Nordics can be extremely rewarding – localization may require some effort up front but it will be worth it to form lasting relationships with customers in this powerful region.
