Serbia - Market Entry StrategySerbia - Market Entry Strategy
Market entry strategies vary widely from industry to industry. The Law on Trade, which regulates the activities of wholesalers and retailers, ensures that any firm may operate in foreign and domestic trade in Serbia. However, the government has not completed all the requisite institutional reforms. Many U.S. firms find that it is cheaper and more efficient to hire a local agent or distributor than to conduct direct sales.
Some U.S. companies have established manufacturing facilities through brown-field or green-field projects, as well as through joint ventures with local partners. Others have entered the market using sales representation offices. These “rep offices” often are used to grow the business until revenues reach a level that warrants a local operation. Other companies use hands-off distributor/reseller agreements as their entry strategy.
The United States and Serbia do not have signed a tax treaty to avoid double taxation. Foreign companies should visit the market and become acquainted with business practices and customs. Networking and establishing relationships with both government officials and business people often is crucial to achieving success. The U.S. Commercial Service at the U.S. Embassy provides Gold Key Service (GKS), matchmaking services, offers business briefings, and assists in arranging all the necessary meetings and contacts for U.S. companies interested in the Serbian market. International consulting firms present in Belgrade may be helpful in establishing the viability of potential local partners.
The U.S. Commercial Service can provide International Company Profiles (ICPs) that encompass a thorough background check on potential clients and partners. Please contact: Boris.Popovski@trade.gov or Zorica.Mihajlovic@trade.gov. Local organizations, such as the American Chamber of Commerce or the Serbian Chamber of Commerce, may be useful in verifying credibility of a potential local partner.