European companies often enter the Philippines with strong products, mature operations, and robust expertise — but still fail to gain traction.
Not because the opportunity isn’t real.
But because they misread the environment.
Here are the patterns we’ve observed across years of EU–PH strategy work.
1. European companies assume a “logical market” — but the PH is a “relational market”
In Europe, business is primarily driven by:
- logic
• track record
• professionalism
• processes
• directness
• timelines
In the Philippines, business is driven by:
- trust
• relationship
• shared values
• familiarity
• credibility
• presence
A Dutch firm once told us:
“We had the best proposal, but they went with the company they already knew.”
They didn’t lose because of bad strategy.
They lost because they missed the cultural foundation of doing business in PH:
Trust comes before contracts.
Relationship comes before proposals.
Presence comes before scale.
Once this clicks, everything changes.
2. Europeans underestimate the regulatory and administrative complexity
Many European companies think entering the PH is straightforward:
- register a company
• hire a small team
• find partners
• launch marketing
• expand
But in reality:
- approvals take longer
• requirements change mid-process
• documentation is repeated
• permits may require multiple follow-ups
• local representation matters
• government offices operate differently than EU institutions
The companies that succeed are those who:
- prepare early
• understand timelines
• build the right compliance strategy
• have someone local navigating the process
Execution breaks expansion faster than strategy.
3. European leadership styles often clash with Filipino team dynamics
We’ve coached many European leaders struggling with Filipino teams because:
- EU directness can feel harsh
• Filipino indirectness can feel unclear
EU speed expects initiative
• Filipino culture expects guidance
EU independence clashes with Filipino “pakikisama” , and accountability structures are different
These are not personal weaknesses — they are cultural differences.
Once leaders adapt, team performance skyrockets.
4. Partnerships make or break PH expansion — but most firms choose too fast
European companies often choose the first partner who:
- replies quickly
• looks professional
• promises big volumes
• speaks good English
• sounds confident
But “fast” is not “fit.”
True partners are those who:
- align with your values
• have real local influence
• are operationally reliable
• understand commitment
• are relationship-driven, not opportunistic
A market entry succeeds not because you have a partner — but because you have the right partner.
5. The biggest mistake European firms make is assuming PH expansion is cheaper, simpler, and faster
It is:
- cheaper in operations
• simpler in market potential
• faster once aligned
But getting to alignment requires strategy.
Market entry into the PH is not “easy.”
It is “high-potential but nuanced.”
Those who respect the nuance, win big.