How to Succeed in the Austrian Market: 6 Strategic Tips for Entrepreneurs

Austria is one of the most stable and wealthiest markets in Europe, making it an attractive destination for international expansion. If you want to successfully conduct business in this country, thorough preparation and a well-chosen market entry strategy are essential. In collaboration with Lucie Hašek, the author of the DoDACHu podcast, we have prepared a list of strategic tips that entrepreneurs should consider.

1. What Products or Services Will You Offer?

First, you need to clearly define the product or service you want to bring to the Austrian market. As in other countries, certain products and services tend to perform better than others. Therefore, it is advisable to conduct a thorough analysis of the Austrian market to identify areas with the highest growth potential and demand. Such an analysis helps to understand local trends and competition.

As Lucie Hašek, the author of the DoDACHu podcast, explains: “Austria is one of the most progressive markets in Europe, especially in the areas of Green Tech and Information and Communication Technologies (ICT). The country also boasts a dynamically growing biotechnology sector – over 66,000 professionals work in life sciences here. Moreover, Austria remains a lucrative market for new players in the e-commerce sector. With a concentration of shopping centres and a high proportion of customers who value a healthy lifestyle, businesses focused on healthy living, including the ‘healthy’ gastronomy segment, have a great opportunity to thrive.”

She further adds: “Another promising sector is services and products for the aging population. With an increasing emphasis on digitalization in healthcare, new opportunities for technological innovations in health care are emerging.”

2. Who Is the Target Group in the Austrian Market?

If you know what you are going to sell in the Austrian market, you should also be clear about to whom you will be offering your products or services – the target group is key to a successful market entry strategy. Therefore, define your target group, considering various factors such as demographic characteristics, lifestyle, and purchasing power.

Austria is strategically positioned for access to markets in Central and Eastern Europe, which can be advantageous for companies planning broader expansions and distribution. A key to success is selecting the right local partner. Find someone who understands the local mentality and business culture perfectly. Lucie Hašek further explains: “Without such support, market entry can be more time-consuming and financially demanding, as companies often cannot avoid mistakes that could be prevented with a local partner. Investing in the right contacts always pays off.”

3. What Resources Are Needed for Expansion into the Austrian Market?

A successful expansion into the Austrian market requires a well-defined strategy and effective utilization of human, financial, technological, legal, and cultural resources. Therefore, try to estimate in advance the necessary investments in marketing, personnel, and operational costs. Always consider higher costs for marketing and brand building, and explore various financing options, such as through local partners or grants.

The presence of a German-speaking salesperson or customer support representative, and ideally a local consultant who can help navigate the market, is crucial. Lucie Hašek adds: “When it comes to human resources, one of the most common pitfalls is the language and cultural barrier. I recommend having a country manager with native German and local market knowledge to help establish business relationships. Today, expansion can be carried out more efficiently thanks to smart approaches, know-how, and the use of modern technologies, including AI. This allows better targeting of customers, process optimization, and lower initial costs.”

She further explains that Austria offers a wide range of incentives and grant programs that can facilitate market entry. She mentions: “For a complete overview, it is advisable to contact the Austrian Business Agency, which supports foreign investors entering the Austrian market. I also recommend focusing on the Vienna Business Agency, which supports innovative and tech companies entering Vienna and offers financial and consulting assistance. Another interesting option is the Austrian agency FFG (Österreichische Forschungsförderungsgesellschaft), which specializes in supporting research and development (R&D) through grants and subsidies.” So, there are indeed many possibilities.

4. What Distribution Method Will You Choose?

Before entering the Austrian market, take the time to consider the strategy regarding the distribution of goods and services. Think about how your products will reach your customers. Basic options include direct sales, where the company sells directly to end customers through its own e-shop, showroom, or office.

An alternative is collaboration with local distributors, sales representatives, or wholesalers who already have established networks and understand the specifics of the Austrian market.

Another option is the use of online sales channels – apart from your own website, you can consider joining Austrian e-commerce platforms.

5. Create a Timeline

Effective planning and execution of the market entry strategy require at least an indicative timeline. Try to determine when the expansion should start, what phases it will include, and when you want to reach key milestones. Make sure to also account for some time reserves, as you may naturally encounter various delays and unforeseen events during your journey.

Your plan should therefore be realistic and measurable, but also flexible enough to adapt to the dynamics of the foreign market. Continuously evaluate the entire process and adjust as needed to changing conditions.

6. Estimate the Required Sales Volume

The strategy creation process should also include setting a target sales volume. This allows you to manage expectations, allocate resources, and measure the success of the entire expansion. The estimate should, of course, be substantiated by market analysis, competition research, purchasing power of the target customers, and the capacity of your team or production.

Calculate the financial resources needed for market entry and estimate how long it will take before investments start to pay off.

A very important factor is the pricing strategy. The Austrian market can be highly competitive and price-sensitive, so it is necessary to find a balance between an attractive price for the customer and a sustainable margin for the company.

In Conclusion

Before entering the Austrian market, clearly define your strategy in all the above areas. A well-planned expansion minimizes risks and ensures long-term success in the new market.

Czech companies that have successfully entered the Austrian market know this well. One of these representatives is named by Lucie Hašek: “One inspiring example is the expansion of the Czech family business LIKO-S, which specializes in interior partitions, living walls, and green facades. The company operated in the Austrian market for several years and in 2022 established the subsidiary LIKO-S GmbH. Several key factors contributed to their success: thorough knowledge of the local market, market entry with a relevant and innovative product, and strong human representation in the form of an experienced country manager. This strategic approach enabled them to effectively establish and grow in the Austrian market.”

If you are planning to enter the Austrian market, feel free to contact us. We are ready to help and offer support tailored to your specific needs.