Belgium are very price sensitive and value for money.
But, you still have a rich population as companies' headquarters and international organizations still have offices in the capital and expatriates have attractive financial packages.
Also as there is no tax on the wealth, the country has attracted many rich foreigners who leave in Brussels and its suburb.
Consumer profile and purchasing power
Generally speaking, purchasing power is lower every year with yearly inflation rate of around 2%. On one hand Belgian population has tremendously lost buying power during the last 20 years (-20% in Brussels) and with a rate of 20% of un-employment in the Capital, that market is not high-end.
There is stiff competition within the Belgian market. This is due to the fact that Belgium is amazingly open to foreign trade. Added to a sophisticated system of distribution, it turns Belgium into a test market, where many foreign companies launch new products. The main geographic zones of the country are Brussels, Antwerp and Liege.
Despite a noteworthy slowdown of the local economy at the end of the year, retailing continued to demonstrate modest but still positive current value terms growth at a rate slightly higher than inflation. In store-based retailing, the number of outlets continues to decline due to a natural cannibalization of still dominant small independent shops located in towns by more profitable large stores – hence the ongoing increase in selling space. Large retail groups gain ground through expansion in the number of outlets, the assortment of products they carry, and also in their private label offerings.
Market shares
The distribution of foodstuff is characterized by a high level of concentration (a few chains with many selling points especially for Delhaize and less importantly for Colruyt), and by a strong development of the co-operation among the distributors.
The distribution of other consumer goods, on the contrary, is better carried out through specialized traditional retailers, so much that in recent years chains of branches, often auto-serviced, with diversified products have appeared on the market.
It is also characterized by the increasing part of the "non food" distribution in hypermarkets and, in a lesser way, of department stores (Inno).
The pride for Belgian distributors is the GB group which manages a union of distribution companies, grouped around four sectors: super and hypermarkets together with CARREFOUR, do-it-yourself, fast foods, specialized distribution.
Organizations in the retail sector
Market access procedures
International Conventions
Member of World Trade Organisation Member of OECD Party to the Kyoto protocol Party to the Washington convention on International trade in endangered species of wild fauna and flora Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal Party to the Montreal protocol on Substances that deplete the Ozone Layer Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies Party of the International coffee agreement 2001
International economic cooperation
Yes
Non tariff barriers
At the European level, agricultural products are protected within the Common Agricultural Policy and textile products from China, Belarus, North Korea, Montenegro, Kosovo and Uzbekistan are subject to particular formalities and import licenses or control procedures (export document, monitoring document).
Customs duties and taxes on imports
Operations carried out within the EEA are free of duty.
The Common Customs Tariff of the European Union applies to goods originating outside Europe. Generally the duty is relatively low, especially for industrial products (4.2% on average).
The Combined Nomenclature of the European Community (EC) integrates the HS nomenclature and supplements it with its own subheadings with an eight-digit code number and its own Legal Notes created for Community purposes.
Import procedures
Customs procedures include, apart from importing with payment of duties, the following tax exemption procedures: release for consumption, transit or temporary admission, customs warehousing, inward processing, processing under customs control.
More details on the website Invest Flanders
The case of samples
Samples are acceptable to Belgium and will be exempt from all Duty and VAT. A Certificate of Origin will not be required for import; only a standard Air Waybill or Bill of Lading and Commercial Invoice will be needed.
Imported samples of commercial value owned by individuals abroad also may be granted exemption from customs charges. Security is required in the amount of duty and tax chargeable, plus 10%. Samples may be allowed to stay in Belgium up to one year. Such samples are not permitted to be sold, put to normal use (except for demonstration purposes), or utilized in any manner for remuneration.
The main ports are Antwerp, Gent, Ostend. Antwerp is by far the most important Belgian port and is ranked second in Europe.
In order to operate a competitive recovery, a ten-year plan of reorganization and investments, named Objective 2000" was approved in 1996. It involves a BEF 370.3 billion budget, of which 70 % was assigned for the infrastructure and 30 % for rolling stock.
The positive economic climate was particularly beneficial for the chemicals industry, wood and furniture, metalworking, electrical machinery and equipment, and the manufacture of transport equipment.