Factors and techniques that are critical to success in Montenegro are the same as in most other countries: a product or service that has a good reputation, value for money, a seller who maintains close contact with buyers, a motivated and well-trained sales force, strong market promotion and, for technical products, having a professional and end-user-oriented customer service network in place. The ability to provide product financing is of lesser importance than it was previously, as financing from local banks has become more readily available.
The size of the Montenegrin market is a limiting factor for highly specialized products. For such products, it can be more challenging to find a local representative, as the potential sales volumes may not justify the costs of putting the product on the market. A regional distributor covering the local market may provide better economies of scale. Overall, private sector growth argues well for western businesses that are accustomed to selling products based on pricing, volume, quality, and servicing ability.
Trade Promotion & Advertising
Most Montenegrin companies engage in some form of advertising. Available vehicles include newspapers, magazines, television, radio, billboards, and signs. Television remains the most important medium. In Montenegro, there are four national public service television channels (TVCG1, TVCG2, TVCG Sat and the Parliamentary channel), six local public broadcasters, and 15 private TV stations.
The major daily newspapers in Montenegro are Pobjeda, Dan, and Vijesti.
The major weekly in Montenegro is “Monitor”
Outdoor billboard advertising is also growing.
The most widely advertised products are mobile phone services, telecommunications, vehicles, financial institutions, beverages, newspapers, clothing, and hygiene products. Montenegrin regulations prohibit television advertising of tobacco, alcohol, and spirits.
Pricing
Liberalization of the market has put pressure on domestic producers to align pricing with costs. Prices in Montenegro are higher compared to prices of similar products/services in Western European countries and the United States, thus making imported products price-competitive.
With a few exceptions noted below, and in the few remaining publicly owned assets, subsidies have been removed from the market and price competition has intensified.
The state directly controls the prices of utilities, public transit, and petroleum. A significant black market still exists for some products, especially consumer goods, including cigarettes. Such goods can be sold more cheaply because the sellers have generally avoided customs and tax payments. In 2003, Montenegro introduced the Value Added Tax (VAT) with a two-tiered tax rate of 17 and 7 percent. Since January 2018, the standard rate was raised to 21 percent and the lower rate of 7 percent still applies to certain services (primarily computers, technology, books, and tourism), as well as a zero rate for certain products. The VAT turnover period averages 30 days.
Sales Service/Customer Support
Customer responsiveness is growing with the increasing presence of Western companies and growing competition for value-added services. As the market matures, the high level of service support offered by U.S. firms can help regain business from the gray market, which offers no customer support. Having customer support team members who speak English is also beneficial to business success.
Local Professional Services
American Chamber of Commerce in Montenegro (AmCham)
81000 Podgorica, Rimski Trg 4/V
Phone: +382 20 621 328
Marko Mirocevic, Executive Director
Chamber of Economy of Montenegro
81000 Podgorica, Novaka Miloseva 29/III
Phone: +382 20 230 545
Nina Drakic, President
Montenegrin Foreign Investors Council (MFIC)
81000 Podgorica, Novaka iloseva 29/II
Phone: +382 20 408 606
Ivan Radulovic, Executive Director
Association of Montenegrin Managers
81000 Podgorica, Marka Miljanova 27
Phone: +382 69 237 599
Budimir Raickovic, President
Motenegrin Employers Federation
81000 Podgorica, Cetinjski put 36
Phone: +382 20 209 250
Predrag Mitrovic, President
Principal Business Associations
In order to further develop commercial ties between the U.S. and Montenegro, the American Chamber of Commerce (AmCham) in Montenegro was launched in 2008. AmCham Montenegro serves as a leading advocate for American as well as other foreign businesses in Montenegro, seeking to liberalize the labor market and investment climate in order to generate greater FDI.
Marko Mirocevic, Executive Director
American Chamber of Commerce in Montenegro
81000 Podgorica, Rimski Trg 4/V
Phone: +382 20 621 328
Montenegrin Chamber of Economy
The government-supported Chamber of Economy in Montenegro was established in 1928. The Chamber is focused on increasing the competitiveness of Montenegrin enterprises and on promoting Montenegro as an investment destination.
Nina Drakic, President
Chamber of Economy of Montenegro
81000 Podgorica, Novaka Miloseva 29/III
Phone: +382 20 230 545
Fax: +382 20 230 493
Limitations on Selling US Products and Services
Montenegro does not have any limitations for manufacturing sectors or services where only citizens or a sub-set of the population in the country are allowed to own or sell.