A minibus shuttle service was tested in Helsinki in 2018 and 2019 and the EU funded project has expanded to multiple other projects including the same shuttle service piloted in the Baltics. VTT Technical Research Center has conducted testing and research with autonomous cars since 2015. The latest tests have tested self-driving cars in the harsh conditions of Finland where lanes and roads are not clearly visible due to snow, fog, slush or other extreme conditions.
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Finland
Vehicle Technology
The Finnish government has committed to reduce emissions by 60 percent by 2030 compared to 1990. As the vehicle base in Finland is old due to high vehicle taxes, conversion kits and other vehicle technologies to reduce emissions and modernize old vehicles have a market. The Finnish government has also increased financial support for electric vehicles by tripling the funding in 2020 compared to 2019 for constructing electric car charging stations. The government has also investigated other options to promote the expansion of the number of electric car charging stations available, which provides opportunities for suppliers and companies specializing in electric vehicle systems.
Finland has traditionally had strong network coverage, which provides opportunities to take part in the development of the infrastructure for autonomous vehicles. The combination of extreme conditions, strong infrastructure and the legal framework provide a good platform to launch products and potentially dominate the markets.
Despite the digitization boom, human relations remain extremely important. German sports retailers want to continue building on their strength of onsite service as communication with customers are becoming increasingly individual. Therefore, an omnichannel approach is needed. Brick and mortar sports retailers have a future in Germany if they can offer their customers multimedia shopping experiences. New retail formats will be required that connect retail and consumers through shared experiences on the premises of the digital world.
Distribution Channels
The most convenient method of selling in the German market is by appointing a local representative, either on a commission basis or under an exclusive distribution agreement. With Germany being a highly competitive market, it is important to find a distributor with a well-developed marketing network and the ability to provide after-sales services. Buying groups are stronger in Germany than in any other EU country. Two groups dominate the sports retail market: Intersport – (http://www.intersport.com: 900 German members with 1.500 stores) and Sport 2000 – (http://www.sport2000.de: 1000 German members with 1400 stores). The leading sports retailers are Decathlon (80 stores, www.decathlon.de), Sport Scheck (17 stores, http://www.sport-scheck.de, recently purchased by Signa Retail), Karstadt Sports (32 stores, www.karstadtsports.de, part of Signa Retail) and Globetrotter (16 stores, http://www.globetrotter.de). Major market players, among them U.S. brands like Under Armour, Patagonia, Columbia, The North Face, Nike, TREK, Quicksilver, and Timberland often market their individual brands through company-owned stores. Among the non-specialized retailers, the SIGNA Group acquired all shares in the Galeria Karstadt Kaufhof department store group in June 2019. Currently the group runs 172 department stores, but several closures are expected given the new restructuring process. The general retailer amazon.de is the primary choice for buying sporting goods online, followed by bike24.de, decathlon.de, adidas.de and fahrrad.de.
Market Issues & Obstacles
The import climate for sporting goods is satisfactory in Germany. Import restrictions, such as quotas, do not exist, however, import duties do. German importers must pay a 19% import-turnover tax on the CIF (Cost, Insurance, and Freight) value of imported sports equipment and accessories. This tax is passed on in later distribution stages to the consumer as a value added tax (VAT). Customs duties must be paid when clearing goods through customs. Detailed information on customs issues can be found on the following web pages: http://ec.europa.eu/taxation_customs and http://export.gov/europeanunion/marketresearch/sellingusproductsandservicesintheeu/index.asp.Tariffs
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Finland is a high-technology Nordic country of 6 million people located in Northern Europe. Per the Digital Economy and Society Index (DESI) of the European Commission measuring digital competitiveness, Finland ranked number one in EU in 2019 improving two spots from 2018 making Finland the EU digital leader. The Information and Communication Technology (ICT) sector in Finland employed 4.6 percent of the workforce in 2018 with a large share working in the software industry. Turnover for the ICT sector in Finland was $34 billion in 2018, staying on the same level as 2017. The value of electronics imports from the United States in 2018 grew by 20 percent from 2017 with the largest categories of computer hardware and units totaling $28 million (decrease of 38 percent), telephones and network devices totaling $43 million (decrease of 57 percent), and electronic components totaling $106 million (increase of 291 percent). The GDP estimate for Finland for 2018 is $261 billion with a GDP per capita of around $44,000.
Summary
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Private ownership is normal in Finland. All businesses in Finland must be publicly registered at the Finnish Trade Register. The type of company also affects the permits required, which can include the registration of the right to residency, residence permits for an employee or self-employed person, and registration in the Finnish Population Information System.
A foreigner may need a permit from the Finnish Patent and Registration Office to serve as a partner in a partnership or an administrative body of a company. The practice of some trades in Finland require only a notification or registration with the authorities while others require a separate license. Entrepreneurs must take out pension insurance for their employees, and certain fields obligate additional insurance. All businesses have a statutory obligation to maintain financial accounts, and, with the exception of small companies, businesses must appoint an external auditor. Finland waived the stock capital requirement for corporations in 2019 making incorporation readily accessible. Best strategy for market entry depends on the type of operations. For services, a local presence or a representative is a must as while English skills are relatively good amongst Finns, most customers prefer localization to and service in Finnish. For traditional products and parts, partnering with local suppliers or dealers to gain entry to the supply chains is an option as long as partner selection is conducted with due diligence.
Market Entry
Germany