About Canada

There may be a temptation to consider Canada as one homogeneous country as in Map 1 below. This is a big mistake.

The distance from the east coast to the west is over 5,000 km. Hence, logistics is a major consideration for selling products. It may be helpful to look at Canada from a regional perspective as in Map 2, but a more useful approach would be to look at Canada from a cultural, business or population centre perspective as in Map 3. Although Map 3 refers to provinces, these are, in fact, “theoretical provinces”, or regions with their own particular characteristics that may need a different approach to enter each.

This means that for a particular product or service to be offered in Canada, one should try to understand these characteristics. This is why having a representative familiar with a target region is important.

Since most Latvian companies have relatively small production capacities, approaching a smaller population centre makes sense, particularly for the purpose of establishing test markets. The use of test markets for products should also be considered. This involves offering products in a smaller market to see how a product is received before attempting wider or national product promotion. This is to reduce market entry costs and reduce risks in case of product rejection.

One should also consider regional development programs offered by federal or provincial governments to facilitate growth in these areas. Knowing what incentives are available can provide benefits not normally available to more popular population centres.

On entering the Canadian market, one should also consider that Canada has a free trade agreement with the US and Mexico which could present other advantages.

Conclusion: Entering the Canadian market can be complicated due to Canada’s regional and cultural diversity. Before entering the Canadian market, specialists should be consulted.