2. Hot Spring Portable Spas
 Self contained, portable hot tubs
 Meets California requirements for energy efficiency
 First to receive the ENVY (environment friendly)
award in Germany for energy efficiency
 Manufactured in Vista, CA by Watkins MFG
 Established in 1977
 Watkins is part of MASCO Corp., a Fortune 500
Company

3. Prior to Entering the Market
 Contact the Seattle U.S.  Contact one of the many
Export Assistance Center for trade organizations in
assistance: Washington State for
 Identifying and evaluating additional experience and
international partners advice
 Navigating international  Trade Development Alliance
documentation challenges  World Trade Club
 Creating market entry  Washington Council on
strategies International Trade
 Other export related  State of Washington
guidance Department of Community,
 Contact Mr. Pru Balatero with Trade and Economic
the Small Business Development
Association (SBA) for help
with trade finance

4. Market Analysis
 Although the Scandinavian countries of Sweden, Finland, and
Norway are well known for saunas, they also love hot tubs
 Products sold in Sweden must be of high quality and
competitively priced - Hot Spring Spas have one multiple awards
for quality and Consumer’s Digest best buy awards for value
 Environmentally friendly and energy efficient products are a
must in all of Europe – Hot Spring spas have one national and
international awards for both environmental compliance and
efficiency.
 The market appears to be saturated, however, Hot Spring Spas is
the world’s number one selling brand and should be able to find
a niche in Sweden

5. Market Entry Strategies
 Conduct market research to find “niche”
 Size & necessary features
 Energy consumption
 Competitive pricing is important
 Locate existing dealers looking to expand their offering
 Create subtle, but informative website that will appeal to
Swedish culture
 Highlight Energy efficiency
 Identify length of warranty
 Avoid claims for relaxation and family gathering as these are
already known
 Product must be ETL listed for safety

6. Inventory Management
 Proprietary design and technology restrict licensing and
franchising
 Use 3M style approach
 Build product in US and enter market slowly
 When demand and revenue meet goals, begin Greenfield
Investment within European Union
 Establish local manufacturing to minimize trade barriers and
transportation costs

7. Sweden’s Import Laws
 Goods must be classified prior to  Pay fees
declaration  Customs duties
 Submit declaration of goods  Value added tax (VAT)
 Electronic is preferred  Any other applicable taxes
 May use Single Administrative  Apply for customs clearance
Document (SAD) immediately upon arrival of
 Use of an agent is acceptable goods
and may help process
 Be prepared to supply additional
documentation
 Commercial invoice
 Customs value declaration 5
 Freight bill
 Certificate of origin
 Packing list

8. U.S. Export Laws
 U.S. export laws are  Freight Forwarder
complex and difficult to options
navigate  NCBFAA.org
 Partnering with an  FreightGate.com
experienced  FreightNet.com
international freight  Shippers’ Association
forwarder or the use of a options
Shippers’ Association
 Shippers.org
would provide freedom
from the majority of  ISASHIP.org
these issues.  PACBOT.org

9. Swedish Culture
 Society
 Egalitarian
 Humble
 Family oriented
 Not flashy or ostentatious
 Business
 Flat management style
 Consensus approach to decisions
 Takes time
 Gives value to all opinions
 Proper attire is semi formal to business casual

10. Political Concerns
 Constitutional Monarchy with a parliamentary system
 Stable democratic style of government
 Elections are held every four years for major positions
 Judicial system does NOT rely on judicial precedent as in
the U.S.
 The Swedish government’s official stance is that the power
comes from the people and every one has the same rights
and opportunities including free speech, freedom of the
press, and freedom of self expression
 Well managed economy with sound fiscal policy and tight
control over their money supply. Sweden has been able to
keep the consumer price index to generally less than two
percent annual growth

11. Geography of Sweden
• Slightly larger than the state of
California
• Located in northern Europe
between the country of Norway
and the Gulf of Bothnia
• Northern most quarter of the
country falls within the Arctic
Circle.
• Two zone climate
• subarctic climate in the
north
• temperate climate in the
south
• Terrain is generally flat with
some gently rolling hills, with
mountains to the west along
the border with Norway
• Approximately 2000 miles of
coastline

12. Conclusion
 Hot tubs fit perfectly into the family oriented lifestyle
that is the Swedish Culture
 The award winning, energy efficient and innovative
designs from Hot Spring Spas should easily capture
the imagination of the high technology society in
Sweden
 Even though the market is saturated, Hot Spring Spas
are a high quality product and when priced right, they
will sell in Sweden.

13. References
 Bureau of European and Eurasian Affairs. (2012, April 5). Sweden. Retrieved from State.gov:
http://www.state.gov/r/pa/ei/bgn/2880.htm
 CDA Media. (2012). Business Structures in Sweden and Doing Business in Sweden :: World Business Culture. Retrieved from
worldbusinessculture.com: http://www.worldbusinessculture.com/Swedish-Business-Structures.html
 CDA media. (2012). Doing Business in Sweden - Swedish Business Culture - Swedish Culture - World Business Culture.
Retrieved from worldbusinessculture.com: http://www.worldbusinessculture.com/Swedish-Business-Style.html
 Central Intelligence Agency. (2012, April 12). CIA - The World FactBook: Sweden. Retrieved from cia.gov:
https://www.cia.gov/library/publications/the-world-factbook/geos/sw.html
 Export.gov. (2010, Aug 5). Export.gov - Center Content - Trade Finance Partners Washington State. Retrieved from
Export.gov: http://export.gov/washington/exportfinanceresources/index.asp
 Export.gov. (2010, Aug 8). Export.gov - Center Content - WA State Trade Resources for Spokane Section. Retrieved from
Export.gov: http://export.gov/washington/Seattle/washingtontraderesources/index.asp

14. References cont.
 Export.gov. (2012, Feb 2). Export.gov - International Logistics. Retrieved from Export.gov:
http://export.gov/logistics/index.asp
 Globaltrade.net. (2012). International Trade in Sweden: Resources for your Trade in Sweden. Retrieved from
Globaltrade.net: http://www.globaltrade.net/m/c/Sweden.html
 Prysm Group. (2010). Marketing a Business in Sweden : Startup Overseas. Retrieved from startupoverseas.co.uk:
http://www.startupoverseas.co.uk/starting-a-business-in-sweden/marketing-a-business.html
 Sweden.se. (Unknown). Business culture in Sweden. Retrieved from Sweden.se:
http://www.sweden.se/eng/Home/Business/Business-culture/
 Swedish Chambers. (2011). Sweden imports - swedishchambers.se. Retrieved from chamber.se:
http://www.chamber.se/swe-imports.aspx

15. References cont.
 Swedish Customs. (Unknown). Importing goods to Sweden from countries outside the EU. Retrieved from tullverket.se:
http://www.tullverket.se/en/startpage/keywordsaz/az/importinggoodstoswedenfromcountriesoutsidetheeu.4.230c8d84122d2a4
008e80006078.html
 Swedish Institute. (2012). Swedish Economy. Retrieved April 7, 2012, from Sweden.se:
http://www.sweden.se/eng/Home/Business/Economy/
 The Heritage Foundation. (2012). Sweden Economy: Facts, Data, & Analysis on Economic Freedom. Retrieved from
Heritage.org: http://www.heritage.org/index/country/sweden
 U.S. Customs and Border Protection Agency. (2011, May 31). Tips for New Importers and Exporters - CBP.gov. Retrieved
from cbp.gov: http://www.cbp.gov/xp/cgov/trade/trade_outreach/diduknow.xml
 Watkins Manufacturing. (2008, March 24). Watkins Manufacturing Earns First European ENVY Award For Energy-Efficient
Hot Spring Spa | Hot Spring Spas. Retrieved from hotspring.com: http://www.hotspring.com/press-releases/watkins-
manufacturing-earns-first-european-envy-award-energy-efficient-hot-spring-spa