How to export Chilean products to EFTA Countries Norway

1
How to export Chilean products to EFTA Countries
- Norway

• Thomas Angell, executive director
• HSH
• (Federation of Norwegian Commercial and Service
  Enterprises)
• Santiago, 10 April 2008

2
March 28th 2008
3
HSH in brief

• HSH is the principal organisation in Norway
  within the trade and service industry
• In trade, HSH covers all sectors and sales
  activities, i.e. retailers, wholesalers, agents,
  importers and chaines within all sectors.
• Most Norwegian imports are dealt with by
  companies belonging to HSH
• Besides commercial interests, HSH ranks among its
  members voluntary organisations, private health
  and care institutions, museums, travel companies,
  accounting services, employment bureaux and other
  organisations

4
Trade provides the basis for, and is therefore a
prerequesite of, economic growth and thus the
improvements to the common good.

• Because of this, and because HSH is the
  organisation for Norwegian commerce, HSH has
  always been interestet in the conditions for
  international exchange of goods and services and
  HSHs attention in these matters is particularly
  focused on imports to Norway and the significance
  of these imports.

5
Norway in international trade

• 0,1 of world population
• 1,2 of world export
• 1,1 of world import ( 70 bill. in 2005)
• 75 of GDP consist of trade (average OECD 45)

6
Norway is one of the smallest countries in the
world, but

• no 28 largest exporter
• no 38 largest importer

7
Norwegian imports(BILL NOK)

• Capital goods 70,5
• Intermediate goods 133,5
• Construction materials 36,4
• Fuels and lubricants 14,3
• Consumption goods 83,0
• Passenger motor cars 19,9

8
Norwegian imports

• Less than 25 is consumption goods!

9
Consumption in Norway Opportunities?

• Consumption in households in Norway 2006 NOK
  842 bill. Commodities 54
• Services 46Shares of consumption of
  commodities/goods
• Food, alcoholic beverages, tobacco NOK 143
  bill. (33)
• Furniture and household articles NOK 50
  bill. (11,5)
• Clothing and footwear NOK 45 bill. (10)

10
Norway's imports of commodities 2006 Value NOK
411 684 million
11
5 most important traditional goods of import to
Norway (except ships and oil platforms).
12
Imports from Chile
13
How to find a sale for Chilean goods in the
Norwegian market

• Consentration on consumption goods?
• Agricultural products?
• Appointing an agent?
• Direct deliveries?

14
The Norwegian market

• Groceries 4 chains covering 98,4
• Norgesgruppen
• Coop
• ICA Norge
• Rema
• (Among the 1,6 is Lidl)

15
Grocery retail trade 2006Market value NOK 110
billion excl. vat
16
Dominant / main importers

• Coffee
• Friele
• Joh. Johansson
• Coop
• Kjeldsberg
• Fruit and vegetables
• Bama
• Norgesfrukt
• UNIL

17
WINE (Beverages) Most important suppliers

• Argentina 1,5
• Australia 3,9
• Chile 2,5
• France 31,7
• Italy 16,6
• Portugal 3,0
• Spain 10,0
• South Africa 1,3
• Germany 10,5
• USA 16,6

18
Wine

• One retailer (state monopoly)
• Private hotels and restaurants
• Private agents/importers/wholesalers

19
Wine

• Arcus
• V S Norway
• Engelstad
• Ekjord
• Strøm
• Stenberg Blom

20
(No Transcript)
21
The Norwegian market

• Textiles and clothing
• Varnergruppen (Dressmann, Cubus, etc)
• Voice
• Sparkjøp
• Gresvig
• The Swedish

22
(No Transcript)
23
Sports equipment chains 2006Market 8 bill. NOK
excl. vat
24
The Norwegian market

• Furniture
• Møbelringen
• Living
• Bohus
• Skeidar
• IKEA

25
Furniture retail trade 2006Market 13,4 bill.
NOK excl. vat
26
How to find a channel for Chilean goods in the
Norwegian market

• Do business with the leading groups in retail
  trade
• You have to establish business relations with one
  of the leading companies in your line of trade
• You can ask for a representative/ a trade agent
• Or if you are dealing with wearing apparel and
  footwear,
• you should attend a trade fair
• i. e. The fashion centres
• www.moteforum.no
• www.fashionhouse.no
• www.skomessen.no
• Or you can establish your own sales office, but
  this is not the simplest and cheapest way to
  penetrate the market
• HSH are helping you

27
Department of International Trade Cooperation
(DITC)

• is established according to an agreement
• between
• NORAD
• (Norwegian Agency for Development Cooperation)
• and
• HSH
• (Federation of Norwegian Commercial and Service
  Enterprises)

28
www.hsh-org.no

• International trade cooperation (DITC)
• Market information
• Market access
• Company matching

29
Who is who in HSH?

• Ellen D. Gjeruldsen (DITC)
• e.d.gjeruldsen_at_hsh-org.no
• Tina Ege (DITC)
• t.ege_at_hsh-org.no
• (or turn to HSH www.hsh-org.no).

30
WHY IS ETHICAL TRADE AN ISSUE?

• Ethical trade became a growing issue during the
  1990s because companies with global supply chains
  were coming under increasing pressure to ensure
  decent working conditions for the people who
  produce the goods they were selling
• A number of NGO and trade union campaigns raised
  consumers awareness of poor working conditions
  in factories and farms in developing counties
• A growing number of companies decided that they
  could no longer turn a blind eye

31
ABOUT ETHICAL TRADE

• As trade is their core activity, ethical trade is
  an important
• CSR aspect for retailers/merchandisers/importers
• Ethical trade relates to labour and environmental
  standards
• in the entire value chain, where ethical
  labelling is
• either not possible or advisable
• Normative principles and standards based on ILO
  UN
• standards
• Ethical purchasing policy/Code of Conduct also
  includes
• principles of implementation and follow-up

32
DRIVERS FOR ENGAGEMENT IN ETHICAL TRADE

• Three mutually dependent criteria strongly
  impacting companies engagement in ethical supply
  chain management
• High level of general public awareness on ethical
  supply
• chain issues
• Provision of relevant and manageable tools
• Easily accessible support long-term capacity
  building

33
ABOUT ETHICAL TRADING INITIATIVE (ETI-NORWAY)

• Founded November 2000 by
• Coop Norway, HSH, Norwegian Confederation of
  Trade Unions,
• Norwegian Church Aid
• Overall objective
• Collaboration to ensure that trade does not
  contravene human-
• and labour rights, development and environment
• Strategic objectives
• 1. Strengthen the support for ethical trade
  issues
• 2. Supporting members in developing ethical trade
  practices

34
ETHICAL TRADING INITIATIVE (ETI)

• Vision Stimulate trade that secures development,
  human rights and environment
• Business idea Enable members to meet challenges
  related to ethical trade

35
SOME ETI-NORWAY MEMBER CHARACTERISTICS

• 69 members as of Aug 2007
• Open to all organisations, public institutions
  and sectors
• e.g Fashion/Sports, Supermarket retailers and
  their suppliers,
• Footwear, Flowers, Furniture, Publisher,
  Accessories
• Mix of SMEs and strong brands
• e.g. Dressmann, Helly Hansen, IKEA, KappAhl, ICA,
  Norwegian
• Olympic Committee and Federation of Sports
• 11 members with 1-10 employees
• Majority joined voluntarily, not because of media
  exposure

36
SERVICES, OBLIGATIONS PRINCIPLES

• Services
• Training and capacity building both in Norway and
  in supply chain
• Identification and quality assurance of local
  improvement resources
• Shared learning and development of tools
• Case-based advisory role
• Obligations
• Commitment to ETI-Norway Declaration of
  Principles
• Annual activity and progress report publicly
  available
• Improvement Principles
• Not terminate trade in case of Code violation
• Monitoring and auditing is just a mean, not the
  goal

37
WHAT IS ETHICAL TRADING?

• ETI mainly focus is on human rights of suppliers
  workers and their labour conditions
• An important aspect of ethical trading is that
  although the suppliers initially do not fully
  comply with Code of Conducts requirements, this
  should not lead the sourcing company to end a
  supplier relationship
• Focus is continous improvements