The tough competitive environment in Latvia requires knowledge of the country's business etiquette. Do not be taken by surprise. Be direct and brief, and forget about excessive formalities.
Latvia is a prospective market strategically positioned on the coast of the Baltic Sea, which makes it an ideal distribution location for trade between Europe and Asia. Following the economic crisis, the country's economy is now enjoying growth, and adoption of the euro in January of 2014 is helping its foreign trade situation to improve.
As a small country with limited private capital, Latvia welcomes foreign investment. However, it needs to be kept in mind that it is a small country with a relatively advanced competitive environment. Therefore, professionalism and attention to details are essential, as is knowledge of the country's business etiquette. And as is so often the case anywhere, connections will smooth your entry into the market. Burdensome bureaucracy, a remnant of Soviet days, is still very much a part of the Latvian business world.
Briefly, clearly, professionally
Similar to people in Scandinavian cultures, Latvians are honest and straightforward and like to get directly to the heart of the matter. They appreciate when their business partners ask expert questions, clear up details and don't indulge in useless talk. Therefore, when doing business it is best to engage in direct negotiations.
Meetings should not be too long, and more importantly they must be well prepared. It is important to present all key facts on the spot and answer any questions. If the presentation is not trustworthy, Latvian business partners may withdraw from the transaction being discussed and cancel all further negotiations regarding it.
Trust plays a key role in the long-term fulfillment of projects, too. Latvians emphasize mutual trust and adhere to the principle that written contracts are not even necessary in dealings with people who have good reputations. However, written contracts are understandably used regularly in practice.
Be formal only during the first meeting
During a personal meeting, respectful, complimentary comments about the host or the location where the meeting is being held are appreciated. Punctuality, shaking hands and eye contact are crucial, but shouldn't be overdone. Such behavior could be perceived as a sign of a superior attitude. If there are more than two participants in a meeting, it is appropriate to give all of the participants the same amount of eye contact.
The first meeting tends to be very formal, so it's a good idea to make official introductions, and it is customary to include titles when addressing people. Subsequent communication can take a friendlier approach, and non-business topics and hobbies can also become subjects of conversation. Because Latvians are slightly conservative and do not express their emotions very much in public, excessive gesticulation is not recommended, and interrupting is considered very impolite.
Cooperation is a strong priority in Latvia, so mediated communication is also conducted in a friendly manner. Social media is regularly used; it's common to hook up with business partners on Facebook or Twitter immediately after completing a joint event or conference, and also appropriate and courteous to wish them happy birthday and happy name day (a tradition in many European countries).
No lecturing or expensive gifts
Latvia is a tolerant country, where it is appropriate to be open, tolerant and positive. Women have traditionally had a strong position in the country's society, and they serve in many government and non-government institutions. Therefore, egalitarian attitudes with regard to gender will certainly assist in making your hosts feel comfortable. Latvians are educated, and they do not appreciate when foreigners tell them what they should do in their own country. However, they have a very warm relationship towards foreigners and enjoy interactions that offer the opportunity to learn about other traditions and cultures.
Every business partner will be impressed when they hear foreigners using some Latvian words. Even a simple greeting can have a positive effect. As far as gifts are concerned, Latvians enjoy when foreign partners give a local gift, such as sweets or a small item. More expensive gifts are viewed as excessive and tend to be perceived as a bribe attempt.
Next time, you can look forward to some advice and tips about how to best communicate and negotiate with Estonians.