Global business leaders convened in Toronto on Oct. 19 to share insights about business expansion into Europe, a continent that’s diverse in culture, regulation and opportunity. 

Hosted by Communitech Outposts in partnership with MaRS Discovery District and World Trade Center Toronto, the event was the second in a four-part series of insightful talks called the Global Growth Series.

The most recent panel aimed to dispel the myth that Europe is a homogeneous market and presented first-hand experiences from those who have navigated the intricate maze of European business.

“European expansion is not merely about navigating regulatory pathways; it's about understanding customer inclinations and cultural intricacies,” said moderator Scott Bagby, Executive in Residence at MaRS.

Sampler's Garrett Kowalyshyn gave attendees a glimpse into his brand's European foray. 

“For us, Europe isn't just a single unit,” he said. “The UK, France and Germany are our focus areas, each with its distinct identity.” 

Kowalyshyn urged newcomers to be diligent. "It's imperative to grasp the local landscape thoroughly before making a move,” he said.

Joanne Freeman, Country Director for the UK Department for Business and Trade, emphasized the importance of specific market research, suggesting that businesses might choose markets based on factors like incentives, grants, tax incentives and even proximity to ports. 

Freeman also highlighted that, while the UK has left the European Economic Union, its geographic location and accessibility to Europe have remained unchanged, keeping it an essential gateway for Canadian businesses looking to expand into Europe.

"I don't think anything's changed," she said, adding that despite Brexit, the UK remains “an essential European gateway for Canadian businesses.”

Eric Landry, Director of Sales and Marketing at PolyAnalytik Inc., shared tales of venturing into Europe's chemical sector. Drawing on initial hurdles growing into the Netherlands and Germany, he highlighted the need for differentiation and the importance of having a clear value proposition. 

Many specific markets, such as Germany, often opt for domestic products unless presented with something unique. 

"Approaching these tough markets requires persistence,” said Landry. “While initial communications might seem unrewarding, once they engage, it usually indicates serious business intentions."

"It's like dating," he added. "You want to show that you care about getting to know the other person." 

Landry also emphasized due diligence.

“Ask for references. Speak to other companies they've represented. And don't forget, cultural nuances play a significant role in business relationships. What works in Canada might not work in, say, Germany or Brazil. So, understanding those differences will certainly help in navigating challenges.”

The panel discussion also delved into the idea of leveraging an “employer of record,” such as Communitech Outposts, for smoother transitions into European markets. The advantages? Using a trusted partner to help explain intricate local employment laws and enjoying greater operational flexibility. Such agencies are accustomed to “educating non-local companies” about the intricacies of regional employment laws, making them an invaluable asset for international expansion.

"Take France as an example,” said Kowalyshyn. “Its unique employment laws can be quite a challenge for foreign firms. An employer of record can effectively circumvent these complexities, making business initiation quicker and simpler." 

He also noted the flexibility such agencies offer. "Employing this approach grants companies the autonomy to pivot strategies as and when required without being burdened by stringent local stipulations," he said.

The panel discussion also spotlighted the help offered by government bodies such as Trade Commissioner offices. Such entities can act as pivotal bridges, connecting businesses to foreign markets. Their role extends beyond mere representation – they actively familiarize Canadian firms with foreign landscapes, proving invaluable for those looking to expand. 

“They're not just representatives – they're your gateway to understanding and tapping into foreign markets,” said Landry. “With events like export cafés, businesses can get introduced effortlessly. Once these commissioners understand your business, they scout potential clients on your behalf, making them invaluable assets.”

There are two more sessions in the Global Growth Series.  Click below to register:  

Agenda for each:

  • 3:00 p.m. - Networking
  • 3:30 p.m. - Panel and Q&A
  • 4:30 p.m. - Networking

For more information, email us at outposts@communitech.ca. 

Written by: Azhar Janjua