Global Perspective

The European Marketplace: Barriers to Entry

1 Jun, 2002 By: Response Contributor Response

---

"Anyone with a product, media, money and expertise can sell DRTV products in Europe." So says Amir Tukulj, president of Toronto-based Thane Direct. "The markets in Europe are totally open - some more so than others - and very receptive to all U.S. products," says Tukulj, who points to the United Kingdom as most receptive and Italy as the least, though even that has begun to change in recent years.

John Bramm, president of Vector Direct in Buckinghamshire, U.K., also says the barriers to entry in Europe are low for marketers, with exception of the lack of available media. "Media outlets look for long-term deals with single companies which only allows new companies to try and enter when those contracts are up for renewal," says Bramm.

Despite the opportunities, Bramm says, "American companies have never been successful in Europe," and adds that many have tried and failed. "The only way American marketers are working in Europe at the moment is through third-party DRTV companies," he contends.

Sandi Cesko, president of Studio Moderna in Slovenia, says anyone can get involved in European markets if they're willing to overcome a few perpetual obstacles, like over-regulation of all industries and businesses.

"The European Union (as a whole) and local regulations and standards affect the DRTV industry in many ways and on different levels, such as product, marketing, media time and corporate," says Cesko. "This can pose a serious barrier to companies new in this particular environment. Getting the right approvals, certificates, licenses and agreements for putting specific products onto a specific market can be a long arduous road and definitely requires a learning process."

Bookmark it: digg del.icio.us technorati yahoo facebook twitter