Greek-made products are increasingly being overshadowed by imports as the local market faces rising dependency on goods from other countries. According to the Hellenic Confederation of Commerce and Entrepreneurship’s 2024 report, only 36 percent of products in Greek retail stores are produced locally, a drastic fall from 72 percent in 2020. The dip in local production is closely tied to stagnant revenues and escalating operational costs, which have left Greek entrepreneurs battling for survival in an increasingly competitive market.
The decline in domestically produced goods in Greece is further complicated by the surge in imports from other European Union countries. The report highlights that imports from EU countries soared to 35 percent in 2024, a significant increase compared to 22 percent in 2023 and just 14 percent in 2020. This growing influx of imported goods has been exacerbated by an uptick in imports from Asian markets, with a particular emphasis on Chinese products, which made up 21 percent of imports in the past year. There’s also a rise in imports from Africa and the Middle East, regions that previously contributed minimally to Greece’s retail market.
The Impact of the Pandemic on Local Production
The “Made in Greece” phenomenon momentarily regained traction during the coronavirus pandemic when global supply chain disruptions compelled retailers to prioritize local products. Greek-made goods experienced a temporary resurgence as import options dwindled due to the pandemic-related bottlenecks. Nevertheless, this revival was short-lived; Greek retailers reverted to importing more affordable goods once global supply chains stabilized, exacerbated by Greece’s ongoing competitiveness and productivity challenges.
As foreign retail chains continue to expand their presence in the Greek market, Greek-made goods are increasingly losing their foothold. The appearance of well-known international brands like Chinese fashion retailer Shein and Turkish chains like LC Waikiki has intensified competition, pushing local products further into the background. Coupled with the heightened consumer focus on “value for money” options, Greek consumers are more prone to opting for imported goods that are often cheaper than their locally produced counterparts.
The shift in consumer preferences toward affordability has placed Greek producers in a disadvantaged position, struggling to match the lower prices of imported goods. The economic pressures faced by small local businesses have been substantial, with many unable to reduce their pricing without sacrificing essential aspects of their operations.
Challenges of Greek Entrepreneurs
The landscape for Greek entrepreneurs has become increasingly challenging. The survey of 1,000 small businesses conducted for the report underscores the severe economic strain faced by owners of Greek-made products. Rising production costs, coupled with stagnant revenues, have made it difficult for them to compete with the prices of imported goods. In many cases, Greek businesses are unable to achieve the economies of scale that larger, international manufacturers benefit from, further complicating their competitive stance.
Changing consumer preferences also play a crucial role in this shifting landscape. The “value for money” trend observed among Greek consumers indicates a growing inclination toward higher affordability, often at the expense of supporting local businesses. This trend is particularly evident in the sectors of fashion and electronics, where price sensitivity is highest. As a result, imported goods, which often come at lower prices, make Greek consumers’ choices more straightforward, further diminishing the demand for locally produced products.
The local enterprises now find themselves in a position where they must innovate and realign their strategies to survive. Emphasis on quality, unique selling points, and effective marketing becomes imperative. However, achieving this comes with its own set of challenges, especially when faced with limited financial resources and a highly competitive market environment.
Future Outlook for Greek-Made Goods
Greek-made products are increasingly taking a backseat to imports as the local market grows more reliant on goods from other countries. The Hellenic Confederation of Commerce and Entrepreneurship’s 2024 report reveals that merely 36% of products in Greek retail stores are domestically produced, down significantly from 72% in 2020. This sharp drop in local production is linked to stagnant revenues and rising operational costs, putting Greek business owners in a tough spot in an ever-competitive market.
The rise in imported goods from European Union countries adds another layer to this issue. The report notes that imports from the EU surged to 35% in 2024, up from 22% in 2023 and just 14% in 2020. This influx is compounded by a rise in imports from Asian nations, especially China, which alone accounted for 21% of imports last year. Additionally, there’s been an increase in goods coming in from Africa and the Middle East, regions that previously had a minimal presence in Greece’s retail market.
