Tips for doing business with European buyers in the fish and seafood sector

Building trust is very important in creating and maintaining successful long-term business partnerships with Europeans. Communicating transparently, behaving professionally and delivering on your promises encourage trust, and helps your business. The COVID-19 pandemic means that physical contact, traveling and visiting your European buyers has become more difficult, so we are also providing tips on how to successfully increase your visibility online. It is not a guarantee that you will have successful business relationships with European buyers, but the tips will help to make relationships go smoothly and give you a competitive advantage.

1. Deal with European buyers professionally, both in writing and in person

In general, the European seafood sector is a conservative sector, which appreciates formal communication. For example, they prefer to use last names rather than first names if you do not know the person yet. Most communication about offers, negotiations and purchase orders is done by email. Written communication is preferred, especially as it makes sure that terms, prices and orders are documented, protecting both parties by creating a permanent record. With everything in writing, there is also no additional negotiation once things are finalised.

To make first contact with the company, it is recommended to use a formal email directed to the purchase manager of the company, with a short introduction about your company and your reason for reaching out. As purchase managers have little time and receive a lot of emails, try to keep the email short and to the point, and mention the purpose of your email in the subject line as well as in the first paragraph of your email.

It is wise to include a short company introduction and an introduction to your product. Also include a presentation, in digital form, attached to the email to provide additional information. Keeping the email short and to the point increases the chances that the purchase manager will read it and be interested. Not every buyer will want a price list, and a quotation cannot be given until you know the specifications and quantities that your buyer requires.

If first contact is established through an email, a follow-up meeting face-to-face is always preferred by European buyers before business is finalised. These face-to-face meetings can be organised at trade fairs, company visits (you can visit them or they you), or any other location or time to which both parties can commit.

The most efficient way of having these face-to-face meetings is by organising a company visit, where you go and meet your potential buyer at their offices or factories. These visits are not usually agreed to until after first contact and the early commitment to work together have been made. Buyers may also want to visit your factories before deals are finalised.

Personal connections build trust between the parties and increases the chance for you to become a preferred supplier for that company.

If you do meet the company face-to-face, make sure to bring your business cards and printed information about your company. This way, you make sure after the meeting is over that you leave something physical behind which purchase managers can look at to be reminded of your company.

For the meeting itself, try to create a presentation about your company which is personalised for the company that you are meeting. Include their logo in the presentation and really do your research in which of your products the company might be interested. Make sure not to make the presentation too long, with a maximum of 10 slides and 15 minutes. Make sure to leave enough time during your meeting really to get to know the company, the purchase manager and the opportunities.

Where bringing gifts to business meetings is necessary in other countries, buyers in Europe will appreciate a gift but definitely will not see it as a necessity to do business with you.

Apart from the general tips of communication, it is important first to understand that the business culture can differ between Northern European countries (the Netherlands, Belgium, Germany) and Southern European countries (France, Spain, Portugal, Italy).

The main difference is that the common language in which you can communicate is English in Northern Europe, while companies in Southern Europe highly appreciate being spoken to in their own language (such as French in France and Spanish in Spain), though you can get away with English. This fact does not only hold for the written communication in the email but also for the information (brochure, presentation) that you might share with a company.

2. Online meetings

Due to the travel restrictions because of COVID-19, meeting face to face has become difficult, if not impossible. This means that it is a good idea to organise online meetings via Zoom or Skype, or to make WhatsApp calls. Consider the time difference with your client or buyer and set up a time that would work for both parties.

Building trust online may be challenging, but making a good first impression matters. In these formal online meetings, make sure to be on time for the actual meeting. Sign in or log in five to ten minutes earlier in order to check if all connections are stable and successful. Being prompt and making sure that you have a stable internet connection during the meeting is valued by European buyers.

While it is not a must to wear formal clothing, make sure you look presentable with a neat background. Try to minimise the noise during the meeting.

If you have an online presentation, make sure that the file is ready for sharing, and that it is clear and easy to follow. Practise giving the presentation before the meeting takes place, to make sure that you know all about the slides. To increase the success rate of communication with a company, it might be worthwhile to invest in a good translation of your promotional material and to increase outreach and marketing efforts so that your company gets more visible. It is also a good idea to take notes during the presentation in case your buyer gives additional information or has any requests.

Before the meeting ends, try to summarise what has been discussed. If possible and necessary, discuss when the next online meeting will take place.

3. Consolidation trend in Europe

It is also important to realise that there has been a general trend of consolidation in the European seafood sector over the past years. This consolidation means that smaller importers are being taken over by larger companies in the sector.

In the past, a smaller supplier would have dealt with smaller importers which specialise in a few specific products and which are generally easier to approach. Now, especially in the Northern European countries, a small supplier may deal with larger companies with a broad assortment. These companies are generally harder to approach than a small company. Our trends study goes into more detail on what this trend means for you and your business.

Examples of these larger companies are Seafood Connection and Heiploeg in Northern Europe, and Brasmar in Southern Europe. Targeting the larger companies, you might need to make some extra efforts in order to stand out, while you might get easier contact if you start with a smaller importer.

Tips:

• Keep your written communication short and to the point; make sure that the purpose for which you are reaching out becomes clear in the first paragraph.
• Especially for companies in Southern Europe, try to communicate in the native language of the company/person to which you are reaching out, if possible.
• Try to personalise the communication wherever you can: rather than sending an email to the general info@... email address on the website of the company, try to do some research to find out the name of the purchase manager of the company and direct your first email to them personally. You could search on the company website, search for the company name with the title “Purchase manager” in an internet search engine or search on LinkedIn.
• See the tip about selling points to include in sales pitches and marketing materials, later in this module, for more specific tips on what to focus on for your marketing materials.
• Whenever possible, use mutual connections, references and recommendations to create trust at the beginning of your dealings with European buyers, and encourage them to enter into negotiations with you.

4. Be transparent to build long-term partnerships

While a good first impression and high-quality samples are key to a successful sales process, it is actually how you follow up on this first phase that will determine whether you will work with a European buyer in the long term. It is important to realise that European buyers highly value trust in a business relationship. Part of this trust is established by high-quality products and professional facilities, but it is important to realise that one thing is of the utmost importance in gaining and keeping this trust: open and honest communication.

Many of your buyers will resell your product to other companies, especially in retail. Delays in product delivery will mean possible penalties for your buyer from their customers for failures in their supply chains and wrong labelling can cause recalls from the retail stores. Your buyer will be responsible for covering this cost. If the issue is caused by something that you can control, they may require you to pay. If the issue is caused by something that you cannot control but you are not upfront, you risk losing their trust and your continued business partnership.

Communicating early and honestly (which means right at the moment that you become aware of a problem or delay), and discussing alternatives with your buyer will be highly valued and seen as professional, as it leaves them time to look for a possible solution. Good communication at all times will show your buyer that they can depend on you when problems arise and makes you a reliable long-term partner.

Tips:

• Communicate early and clearly on delays and problems (delay in production, different sizes, smaller catch, delay in loading the container and so on).
• Do not make promises that you cannot keep.
• Deliver the product as agreed in your written contracts with your buyer.

5. Be clear when negotiating prices and specifications

The most important when making an offer to European buyers is asking how they would like to receive the quotation. They might want you to deliver them a weekly price list, if it concerns more commodity products, or they might prefer to receive personalised offers on specific specifications. Getting that information clear in the first conversations makes it easier to work with them.

In general, European buyers like clean, clear and well-structured offers in dollars and kilograms. It is important to describe the product that you are offering in as much detail as possible, so both you and the buyer are clear about the exact product in the negotiation phase that will come after the offer, and no discussion or misinterpretation will interfere later in the process. As mentioned earlier, having these discussions in writing protects both parties.

Of course, it depends on the type of product that you are offering, but it is generally recommended that you include the following details in an offer:

• Latin/scientific name of the product;
• Size of the product;
• Specification (for example, freezing technique, % of glazing (check whether it is compensated or non-compensated glazing), % of added water, treatment, specific trim of a fillet or specific peeling if it is a shrimp);
• Type of packaging (bulk boxes, blocks, retail bags).

Figure 1: Offer of Black Tiger shrimp

Figure 2: Offer of frozen Red Tilapia fillets

If possible, include a picture of a reference product so it is clear what the product looks like.

In order to avoid miscommunication on the calculation of the glazing, it is important to ask your customer how they would like to receive the offer. If they say that they want to get the offer based on compensated glazing, they mean that they want to receive an offer for 100% net weight of the product and the glazing is not calculated in the price. An offer based on non-compensated glazing means that the percentage of glazing is calculated in the price. For example, if the product carries 10% non-compensated glazing, the price that you offer will be for 90% net weight.

The prices with which most European buyers work are net weight prices. However, as this procedure might of course be different per buyer, it is also very important to discuss with each individual buyer. If you are working with a general price list that you send to more than 1 individual buyer, it is recommended to use net weight prices.

What is included in the price-setting depends on which Incoterms you agree with the buyer. For example, a Free on Board (FOB) price will not include the shipping and insurance cost, which will be paid for by the buyer. With cost, insurance and freight (CIF), which is often preferred by the buyer, the shipment and insurance costs will be on you and therefore will be reflected in the price. More details on the different Incoterm options and insurance can be found in our report on Tips for organising your fish and seafood export to Europe.

As for margins, it is important to take into account that the margin of a product depends on the product which you are offering. Are you offering a commodity product that is widely available in the market? If so, the margins that you can expect will be lower than if you are dealing with a niche product or a product of much higher quality than commonly available. Generally speaking, exporters can expect no more than a 10% profit margin on their products, with lower-value species at times getting much less.

As for discounts, it is important to realise that giving a discount is generally not to be taken lightly and you should go about giving discounts carefully. The same as with margins, how much discount you give depends on the type of products that you are selling. Immediately giving a buyer a discount or giving too much discount devalues your product offering and gives you a certain “low-quality” image, which is not something for which you should aim. Discounts can, however, be a good tool to encourage buyers to commit.

For example, if you have a certain size that you would like to sell to a buyer but the buyer is actually looking for a slightly different size, giving a discount might be a good incentive for them to take your product. In general, when looking for a win-win promotion that benefits both you and the European buyer, giving them a discount when they commit to several orders over a period of time often works.

Tips:

• Determine at an early stage of contact with the buyer how they would like to receive an offer and on which Incoterms.
• Give as many details as possible on the product in the quotation to avoid miscommunication later in the negotiation.
• Be careful with giving discounts, as it might devalue your product.
• Professional service and communication are highly valued by European buyers, and can give you an advantage over your competitors.

6. Organise your samples to make more successful sales

In doing business with European buyers, it is a common practice for them to request samples of the products that they are interested in buying from you. The quality and presentation of these samples are key for them to check whether you can meet their quality requirements and product specifications. Investing time in making good samples, and in their presentation, can therefore really make or break a deal with a European buyer.

After you have established the specifications for which the European buyer would like to see samples, make sure to dedicate time ensuring that the product is not only produced in the right way but also packaged in the right way. Arrange high-quality samples, as the samples will determine the buyers’ final decision of whether to go into business with you or not. Use high-quality packaging to transport the samples to the buyer to ensure that the samples arrive in the best condition in Europe.

Once you have prepared the sample, it is important not to take arranging transport lightly, as it might be the most difficult part of arranging the delivery of your samples. Sending samples requires you to arrange the correct labelling of the box, as well as the accompanying documents which ensure that the sample is cleared at European customs when it arrives. Due to the logistical difficulties because of the COVID-19 pandemic, remember that you might have to deal with delays in shipping and border checks, and with security measures in the country of destination.

Tips:

• Ask both your transport company and the receiving buyer about the documents and correct labelling (as well as the amounts of dry ice and other considerations) which need to be arranged in sending the samples and ensuring a smooth clearance at customs. A delay at customs will easily take a few hours, which could influence the quality of the samples.
• Focus on packing each sample in an individual transparent sealed bag with header cards that are labelled with all the information which you would normally put on the label of the product itself.
• If the specification that the buyer requires is a retail bag, it might be a good idea already to pack the product in a sample bag which you would like to use for sale in supermarkets. This approach will show them that you are willing to go the extra mile.
• Make sure that you pack enough pieces of each specification which they would like to see.
• Polystyrene boxes with dry ice, to keep products in good condition until they arrive, are commonly used and the dry ice often needs to be labelled with special pictograms on the box.

7. When meeting buyer requirements, have the right certifications in place

It is important to take into account the requirements that buyers will expect you to meet before you can start supplying them. European buyers will require certifications for all of their sustainability, origin and food safety requirements, as well as other certifiable claims that you might make. Food safety certifications (such as HACCP), compliance (IFS), sustainability (MSC and ASC) and social (BSCI) certificates are a hard requirement for doing business, and having them in line will be essential to reaching some markets.

At the time of writing, European buyers have not added requirements related to COVID-19 (such as nucleic acid testing of seafood imports by China). Unlike China, which imposed strict biosecurity on seafood imports, generally speaking, Europe does not associate COVID-19 with food safety issues.

Even though the buyer will conduct their own checks on the quality of your products and the requested specification, third-party certifications will be essential. Remember, certifications serve to provide the end-consumer with confidence that someone is watching, checking and agreeing that the product is made in the way that the company says. If the end-user will not buy the product, the buyer will not need it.

The certifications are particularly important to the retail sector of Northwestern Europe, but more companies are now demanding more certifications.

Tips:

• Read the CBI buyer requirements study to find out more about certification – you need to understand this aspect to be successful doing business in Europe.
• Find out early in the contact with your customer if they require certifications before you can supply products to them and, if so, which.
• If you are working with more than 1 target client, try to choose the most commonly requested certifications. Be sure that you invest in the right certifications to avoid having to invest in another certification at a later stage.
• Once you have figured out which certifications you need, consult with a local certification body in your country to find out the requirements with which you need to comply to pass the audit. Most international accredited certification bodies such as Société Générale de Surveillance (SGS), Control Union and Bureau Veritas have local offices that you can contact for help.
• For some certifications, it is possible to start off with a “gap” analysis, which will give you insight into what you need to improve to be able to pass an audit for that certain certification. This insight will give you a clear picture of where to invest and will also give you a timeline to communicate with your potential buyer how long it will take you to start delivering to them.

8. Add your unique selling points to sales pitches and marketing materials

To be successful selling to European buyers, it is important to think about which unique selling points (USP) of your product or company will appeal to them. Use those USPs in your sales pitches and marketing materials.

The way that you manage your company, unique features of your product (such as colour or texture), the fact that your company is family-run, or the way in which you farm or catch your seafood product are all examples of USPs that can attract European buyers. Other examples of unique selling points are experience, transparency and traceability, sustainability and storytelling about the origin of your product. Below, we share some examples that generally appeal to European buyers and some examples of things not to do.

Note that using the cheapest/lowest price as a unique selling point will not be a strong selling point for your product. While a competitive price is of course one of the features that a European buyer or any buyer will consider, it is unwise to use it as your only USP. While you might not realise it, using the cheapest price as your only USP might tell the buyer that your product is of lower quality. It is smarter to focus on price later in the negotiations.

Experience

If your company has already been in business for a long time, you have a family-run business that has been in the family for many generations or you have a management team with a long history and a strong reputation in the industry, they are definitely unique selling points that you could use. They point out your experience and proven track record in the business, encouraging trust among potential European buyers.

Also point out the countries to which you are already exporting, emphasising the companies with which you have already been doing business. Even if these companies are not European, they provide evidence proving your experience. In the end, proven experience and/or a proven track record increase the trust which a buyer has that you can deliver the products as agreed. This way, they will be more easily convinced to go into business with you.

Transparency and traceability

A unique selling point for which European buyers are definitely looking in a supplier is the transparency in the supply chain and the complete traceability of your product from the farm/catch level to the final product. If you are able to provide this information, you should definitely emphasise it in your sales pitch and marketing materials. For European buyers, full traceability and transparency mean that documentation on all the steps of the supply chain is available, and that you are open and transparent in your communication about your company.

Traceability has become a unique selling point for some seafood products, as it allows buyers to check the supply chain of your product from ‘sea to table’ (for wild-caught products) or from ‘farm to fork’ (for aquaculture products). An example of these traceability efforts is John West’s Trace Your Plate initiative. This allows consumers to discover where their fish came from. These tracking methods are available online, which allows consumers around the globe to easily check the history and origin of their seafood products.

Sustainability

In the European market, proven sustainable fishing or farming and processing practices with regard to the environment and society will certainly be a good selling point that improves your chances with European buyers. It is, however, not enough only to tell them that you are engaging in sustainable practices and how. European buyers, especially in the north-western European markets, will prefer and even require you to have sustainability certification. They prefer you to have MSC certification for wild catch or ASC certification for farmed products.

Even if you cannot yet obtain sustainability certification, but you are engaging in sustainable practices, it is always worthwhile to mention them as a unique selling point. Sustainable practices will make clear to potential buyers that you are working towards being certified. An example of a sustainable practice could be the replanting of mangroves around your farm for aquaculture or engaging in stock management practices for wild catch.

In the retail market, particularly in north-western Europe but increasingly elsewhere, a sustainability certification is no longer a unique selling point but rather a market entry requirement.

Storytelling for your product using origin or production method

Related to the unique selling points, a trend of which to be aware in the European market is the trend of storytelling. Storytelling can be explained as increasing the value of a product by using and telling the unique story behind the origin or production of the product.

European buyers, especially those in Northern Europe, are increasingly looking for ways to increase the value of the product in the market. If your country has a good reputation in producing your product, use it. Underline the sustainability and quality of the product by telling the story about how or where it is produced.

By using images such as the beautiful nature of the country, or smiling people working in your company or on your farms, you can encourage the consumers to relate the positive features to your product. Making people aware of the origin of your product and telling the story can positively contribute to the image of a high-quality product with a good natural and sustainable image, particularly if your product is in its final form in the retail market.

Figure 3: New retail product line for shrimp from Klaas Puul (now part of Sykes UK)

Source: Undercurrent (2019)

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