Do Nordics Prefer Local Or Foreign Providers?

Last Updated on August 28, 2025 by Victoria Silber

When international companies consider entering the Nordic markets, one of the first concerns is whether local buyers will trust a foreign provider.

It is a natural question. In markets where relationships, trust, and reputation are so important, do you stand a chance if you are not already part of the local network?

Mik Lokdam from VAEKST has worked with more than 150 international B2B brands across Denmark, Sweden, Norway, and Finland. His perspective is clear: Nordic buyers do prefer local providers when the choice is easy.

But at the end of the day, the deciding factor is not nationality, but quality and value for money.

Local preference exists, but it is not absolute

Of course, buyers would rather deal with someone they can meet easily, who speaks their language, and who understands the cultural nuances.

Being local lowers the perceived risk. There are no concerns about tariffs, regulations, or time zones. Communication is smoother, and the sense of familiarity makes the decision easier.

But that does not mean foreign companies are locked out.

Mik emphasizes that Nordic buyers are rational and pragmatic. If a foreign provider clearly offers a better solution — whether in terms of quality, innovation, or price — then that will win the deal.

The local advantage matters, but it is not decisive if you bring something truly valuable.

Quality and value over geography

In practice, this means that foreign companies have to lead with the strength of their product or service.

What problem do you solve better than anyone else? What makes you worth the extra step of working across borders?

If you can demonstrate clear value, buyers will listen. The Nordics are not protectionist in spirit. These are open economies built on trade, used to dealing with international partners.

What matters is whether your offer stands out.

The importance of showing up

That said, one piece of advice comes up again and again: you need to show up in person.

Nordic buyers are unlikely to commit to a new foreign supplier purely over video calls and emails. Meeting face to face, shaking hands, and building rapport are essential steps.

Mik advises foreign companies to plan trips where several meetings can be arranged over a few days. Even one or two days on the ground can make a big difference. Being physically present signals commitment.

It reassures buyers that you are serious about the market.

Cultural nuances in each country

There are also subtle differences between the countries.

In Sweden, decisions are consensus-driven, which means you may need to convince several stakeholders. In Denmark, buyers may be harder to reach initially, but once they are interested, decisions can move faster.

Norway’s buyers are pragmatic but cautious, and Finland’s are direct and open once trust is built.

Understanding these nuances helps you navigate the “local versus foreign” dynamic. If you come across as respectful of culture, willing to listen, and able to adapt, you bridge much of the gap that being foreign creates.

Case references matter

One of the strongest ways to overcome the local preference is to show proof that you have already worked successfully in the Nordics.

A case study from Sweden can open doors in Denmark. A Danish client’s logo helps in Norway. Buyers are reassured when they see that their peers in neighboring countries have trusted you.

If you are completely new, references from other respected markets can also help.

But nothing beats local proof. That is why Mik often advises companies to start in the country where it is easiest to gain early traction, even if it is not the largest or most strategic.

Once you have that first Nordic case, expansion into the others becomes much easier.

The risk perception

Why do local buyers instinctively prefer local providers?

Because risk is lower. A local partner is easier to visit, easier to understand, and easier to replace if something goes wrong. For a foreign partner, the risks feel higher: delays in communication, misunderstandings, or unexpected costs.

That is why foreign companies must work harder to reduce risk perception. Clear contracts, transparent pricing, strong references, and reliable communication all help.

If buyers feel that you are just as reliable as a local provider, the barrier falls away.

When local truly matters

There are cases where being local is almost a requirement.

Highly regulated industries, sensitive government contracts, or services requiring constant on-site presence are difficult to win as a foreign entrant without establishing a local entity or partnership.

But in many industries, especially in technology and professional services, foreign providers can succeed if they bring clear value.

Nordic buyers are used to dealing internationally and will not reject you purely for being foreign.

The long-term investment

It is also important to see the question in terms of time.

At first, being foreign is a disadvantage. Buyers may hesitate. But once you have been active in the market for some time, once you have references and a presence, you are no longer seen as foreign in the same way.

You become part of the ecosystem.

That is why patience matters. The first year is about breaking in, building trust, and proving your worth. After that, you are no longer just a foreign entrant.

You are a known player with a track record.

Final thoughts

So do Nordic buyers prefer local providers over foreign ones?

Yes, when all else is equal, the local option feels easier. But all else is rarely equal. Buyers in Denmark, Sweden, Norway, and Finland ultimately care more about quality, reliability, and value for money than they do about nationality.

For foreign companies, the challenge is to reduce the perception of risk, show up in person, and prove credibility with references.

If you can do that, being foreign will not stop you. In fact, it may even work to your advantage if you bring something new and valuable to the market.

The Nordics are open, rational, and quality-driven.

Lead with value, invest in relationships, and the preference for local providers will not be a barrier to your success.

If you’d like to hear Mik explain this in his own words, watch the clip from our conversation below.

 

For more insights on entering the Nordic markets, visit Export Playbook and explore The Nordic Entry™, my step-by-step guide designed to help your company avoid costly mistakes when expanding into Scandinavia.