Export Morning: Moldovan companies got acquainted with the potential and features of the Austrian market.
The Investment Agency organized the next, 18th event in the Export Morning series, introducing entrepreneurs from Moldova to the possibilities of exporting to the Austrian market and establishing trade relations with entrepreneurs from this country. During the event, a representative of the consulting company CIvitta, Stela Corobceanu, made a presentation of Austria as a sales market for Moldovan products, outlining the characteristics of this country, its potential, consumer preferences and features of customs clearance of goods supplied to this market. Corobceanu emphasized that in recent years there has been a decline in bilateral relations between Moldova and Austria and there is great untapped potential and niches in which Moldovan producers could prove themselves. In 2022, trade turnover between the two countries amounted to $103.9 million, or 12.8% less than the previous year. At the end of 2022, products from Moldova account for 0.2% of all Austrian imports, and the share of products from Austria on the Moldovan market decreased from 1.7% in 2018 to 0.8% in 2022. The trade balance remains deficit for Moldova, at the same time, it increased from $40 million in 2018 to $78 million in 2022. Austria ranks 22nd out of 77 countries to which Moldova exports its products. Last year, Moldova exported $21.3 million worth of goods to the Austrian market, or 3.3% less than in 2021 and 53% less than in 2018. Last year, four categories of goods accounted for the largest share of Moldovan exports to Austria: these include fruit and vegetable products (25% of exports), seeds and nut kernels (25%), essential oils, raw materials for perfumes and cosmetics (9%), machines and apparatus (6%). In total, in 2022, Moldova exported 87 categories of products to this country. For example, about 3.8% of the structure of Moldovan exports to Austria was accounted for by essential oils, 1.7% by apricots and cherries, and 1.5% by fruit juices. At the same time, Stela Corobceanu noted that over the past five years there has been a diversification of export positions: Moldova supplied 23 categories of goods to the Austrian market for the first time (machines, electrical devices, wood, machines for soil cultivation, etc.). During the event, the advantages of certain categories of Moldovan goods and the main risk factors that manufacturers from Moldova should take into account when entering the Austrian market were presented. For most exported goods, Moldova can offer lower prices compared to other supplying countries, and the main risk is the high concentration of companies in the markets. Stela Corobceanu emphasized that Austria is approximately 3.5 times larger than Moldova in terms of population and territory. This is a country with high purchasing power, while also possessing great resources and economic activity. For comparison, Austria's GDP in 2023 in current prices is 447.6 billion euros (Moldova - 14.8 billion euros), and per capita it is 44.5 euros (versus 5.15 euros per capita GDP in Moldova). Speaking about consumers, Stela Corobceanu noted that the share of “Z-consumers” is growing, who make purchases more pragmatically, focusing on their style and life dynamics. Austria has a higher life expectancy, a developed social policy, residents are focused on consuming healthy and high-quality products, and value traditional food products. They prefer to buy goods in supermarkets and stores; the consumption pattern of goods “from farm to table” is very developed, etc. During the event, expert in the field of quality management and production organization Ilya Kleiman spoke about the importance of certification and compliance of product quality for Moldovan companies to enter the Austrian market. Manufacturers of lavender and products made from it, manufacturers of furniture, fruits and vegetables, flour products, etc. also shared their experience of working with the Austrian market. Herewith, the head of the Export Promotion Department of the Investment Agency, Anastasia Ungureanu, called on Moldovan companies to explore the possibilities of exporting their goods to the Austrian market, emphasizing the institution’s readiness to provide the necessary support. // 16.11.2023 — InfoMarket.
