The Grand Duchy of Luxembourg is home to the only Grand Duke in the world, and thousands of corporations. But that’s not all you should expect when doing business in Luxembourg!
10. No one uses Luxembourgish
It may be tempting when you see that Luxembourg has its own language, to try and learn parts of that language. Whilst a ‘Moiën’ or a ‘Merci’ won’t go amiss to the locals, no businessmen use Luxembourgish.
Whilst they may indeed use Luxembourgish at home, or understand it to a native or fluent level, they will never use it. This is mostly down to the fact that French is the language of business.
You can indeed use some Luxembourgish with your Luxembourger business associates. But doing this early in your relationship will certainly get you some weird looks!
9. The difference between French and German
If you’re familiar with the Franco-Dutch issue in Belgium, the same is true for Luxembourg with French and German! Due to the fact that Luxembourg has often shifted between French and German control, both languages are ever present in the culture.
As such, both French and German have different social standings. German is used by a lot of the population, and is generally considered to be a ‘lower standing’ language. This is to say, that those who speak German as their preferred second language are socially lower.
Due to this, the majority of businessmen, nobles and anyone who’s anyone speak French. This has created a slight rift between French and German speakers, although most Luxembourgers speak French, German and Luxembourgish.
8. The local media is your ally
Whilst you should be subtle with your employment of the local media, Luxembourgers will be impressed that you have chosen their media over your own. You should always remember though, be subtle.
If you decide to go in with a Luxemburger Wort under your arm, and talk about the latest headlines, you may get a positive response, but it’s also possible that you get a negative one too!
Use the local media to help you understand the lay of the land, so to say. Nothing more, nothing less.
7. No gifts!
As a general rule, you should not try to give your Luxembourgish business associates gifts. When doing business in Luxembourg, Luxembourgers believe that gifts and business don’t go hand in hand, and that you should focus on the work at hand first.
With that being said, if there is an extremely important occasion, gifts are mandatory. Occasions such as weddings, retirements and marriages should be met with gifts.
To Luxembourgers, this symbolizes your friendship together. The fact that they can tell you about this, and the fact that they can celebrate it with you shows that your friendship has gone beyond a mere business relationship!
6. Formal
When doing business in Luxembourg, it is important to remember that Luxembourgers expect formality 99.9% of the time.
As such, formal business attire should be worn whilst conducting business together. This means a business suit for men and either a business suit for women or something formal but fashionable!
The only time formality it dropped really, is after a main target or goal has been hit. After that, they will have a small party, including food and perhaps alcohol, however, getting drunk rarely happens.
The next day, it is expected that it will be business as usual. The Luxembourgers will expect that they will work towards the next big target with you!
5. Punctual
As with much of the rest of Europe, Luxembourgers expect you to be punctual. When doing business in Luxembourg, especially as a foreigner, being late repeatedly gives you a poor reputation.
As most Luxembourg companies are highly organized and skilled, they expect you to be the same.
Whilst being late once in a business relationship of three years may be forgivable. Being late once in a business relationship of only a few weeks is totally unforgivable! God help you if it’s your first impression too!
4. Preparation
As mentioned earlier, Luxembourg companies are highly organized. Luxembourgers have realized that being prepared for the worst does indeed help.
As such, when you’re doing business in Luxembourg, they will expect that you will give sufficient notice for everything. That is to say that you should tell them several weeks before you arrive in the country that you are doing so.
You are also expected to give one to two weeks notice of scheduling a business meeting. This notice is expected to include all relevant details, including date, time, meeting place and any other information the other party may need to know.
3. Business cards
Like most Europeans, the Luxembourgish are very fond of business cards. They believe that a business card doesn’t just tell you how to contact someone, but also a lot about them. What they’re like, who they are an the like.
A cheap, poorly designed business card will indicate that you aren’t worried with results. A high quality, professional-looking business card will indicate that you are extremely detail-oriented and the sort of person a Luxembourger wants to do business with!
If you’re arriving at a Luxembourger’s office, it’s expected that you give the receptionist and your business associate one of your business cards.
For the former, this is done in order to make adequate business arrangements between yourself and them. Whilst for the latter it is merely good manners and used for if they need to contact you urgently.
You should also expect that your business associate will give you (and your business associates) business cards as well!
2. Food!
Much like if you were to do business in Andorra, you may find that after a while, your meetings become more social. Instead of meeting at your business associate’s office, you may find that you meet at a local restaurant instead!
For Luxembourgers, as with much of Europe, food is an essential part of their culture. Whilst it’s unlikely that you’ll get a full on three course meal, it will likely be on the part of your Luxembourger business associate.
They will then insinuate that next time you should foot the bill as it’s only fair. This is something that you should address and agree to before you leave the business meeting.
1. Use letters
After a business meeting, you should always use a letter. Your letter should be formal, written in French (perhaps with an English translation is you would like) and include a lot of detail.
The letter should specifically be about your business meeting. More specifically the key points and what you discussed about them. In many ways, this letter is supposed to be a memorandum, and be what you took away from the meeting.
Your Luxembourger business associate will also do the same back to you. This will help you to understand what you need to report back to yourself and your employees and what you will talk about in the next round of business negotiations.
What else should you know about doing business in Luxembourg? Remember, if you are looking to do business in Luxembourg, our translation services are world class!