Establishment – Personal networks important for success in Denmark

“The market is generally favorable in Denmark. We focus on the Greater Copenhagen, where the large companies are located" he says and continues:

"Personal networks are very important in Denmark. In Sweden, there are often several different units of a company involved in a business, while in Denmark single individuals decide if the deal should go through or not."

Consignit focus on a so-called regulatory industry for example pharmaceuticals and nuclear power. It includes developing and maintaining the customer information management system. This year, the turnover in just Copenhagen is around 15 million Danish kroner– and there are 14 employees. In other words, the business is going very well.

Better margins
"The margins are better in Denmark than in Sweden despite the fact that the costs, such as wages and prices, are higher in Denmark," notes Staffan Arbing.

Consignit is initially a Swedish company that was established in Gothenburg in 1997. The then 13 employees came primarily from the consulting firm Cap Gemini. Then it went fast; Malmö 1998, Macclesfield (outside Manchester, England) in 2000, Stockholm 2001 and London and Copenhagen in 2004. In total, the company now has 250 employees and is owned by the French company Altran whose group consists of about 100 different companies.

"We strive to have the same corporate culture whatever country we establish ourselves in. Although we must of course be aware of the different countries' cultures. The distance between Malmö and Copenhagen enables us to share many services and new employees can choose where to work. But we also use employees from our company in London. To be close to an international airport in Kastrup means a lot to our business," says Staffan Arbring.

Common with confusions of language
"The differences are small, but can be decisive. Confusions of language are common and you should also be aware that price negotiations and bargaining will look different. Within the consultancy branch, it is more common in Denmark than in Sweden with fixed prices and, for instance, less common with framework procurements."

"I have seen many companies that have done well in Denmark, but more that have failed to succeed. You have to work hard and use market research in order to focus on the right target group."

According to Staffan Arbring, many Swedish companies are not 100 percent serious about their investments in Denmark.

"You have to have a 100 percent focus on Denmark when working with the Danish market. You have to work wholeheartedly, and in a long-term perspective. It is much easier to set up a business in Norway and Finland."

                                                                                     Cecilia Helland