4 Crucial Insights to Know to Expand Your Retail Business in Belgium
The Belgian retail markets offer ample business opportunities for ambitious retailers. Even in times of soaring energy prices and economic challenges, expanding your business to the Belgian market remains an intelligent move. However, you need a deep understanding of how to go about an expansion in these promising markets.
At Retail Point, we’ve helped a wide variety of retail businesses grow their impact in this region. Tapping into that expertise, we’ll share our most crucial insights: we’ve compiled four must-know insights when considering an expansion to the Belgian market.
1. Consider the cultural nuances
Each country has its own cultural guidelines and nuances, and Belgium is no exception to that rule. A local expert helps you navigate the pitfalls and opportunities of their specific market and its way of doing business. They’re able to translate hidden messages and between-the-lines communication.
Let’s do a small crash course here:
- Quick ‘handshake’ dealmaking: this Anglo-Saxon custom isn’t common in these parts
- Professional demeanor: we’re reserved, polite, and even laid back
- Direct confrontation: avoided, for both positive and negative situations
- Communication: slow, decided, and soft-spoken (often perceived as muffled)
Belgians have a unique way of communicating. Turn it to your advantage by relying on a seasoned local partner to help you negotiate.
2. Complexity all around
No need to beat around the bush: Belgium is an extraordinarily complex country. There are five different levels of government, each with its own legislation. And lest not forget the rigorous language laws. We’re almost like a miniature European Union. This could present challenges, but it harbors great opportunities as well.
The complexity and diversity of our people make Belgium the testing market of choice for many retailers and producers. But you need to identify and manage the differences in consumerism and buying power in each different region or you mightn’t get the impact you’re looking for. Again, a bilingual partner with local roots is your best bet for successful market expansion.
3. A specific and unique rental legislation
The Belgian rental legislation was originally drafted to protect the renter – not so much the owner. Rental contracts can be terminated every three years – in comparison to the UK, for example, where they’re valid for 20 years – but provide certainty for the renter for up to 36 years. You’re well protected, while remaining extremely flexible. This provides businesses the opportunity to quickly adapt to changing market circumstances.
On the other hand, formal rental legislation requires you to renew your contract after nine years through a very meticulous procedure. Incorrectly dealing with this could result in the loss of your lease. It’s a pitfall for many businesses – one which can easily be avoided with the right guidance.
4. Personal contact is still key in the owner’s market
A substantial percentage of commercial real estate in Belgium is still in the hands of private individuals or families. These owners prefer personal and close contact in negotiations and are often looking for partnerships with people who truly share their values. Access to this considerable group of owners is an advantageous foot in the door for your business.
Retail Point doesn’t just foster close relations with large groups and investors; we’ve also been working closely with private owners for several years. We speak their language, on all counts, and do so with mutual respect. Being perfectly bilingual, our private owner network stretches out to both sides of the language border. It’s your best bet to gain access to this significant and important part of the owner’s market.
Reach out and let’s talk
Ready to do business in Belgium? Reach out to Retail Point and let’s talk expansion strategy. We’re looking forward to discussing your specific situation and helping you break into one of the most coveted and strategically optimal markets in Europe.