Germany Doing business in Europe’s largest market
Key facts Europe’s largest domestic market 27% of Europe’s GDP Population: 82 m Companies: 3,7 m UK's largest export market in Europe second largest globally after the US. Global leader in international trade fairs
Germany - strengths Economic Strength Political stability InfrastructureHuman Capital
Key industries Munich Automotive ICT Electronics Engineering Aerospace Public-Private Partnerships Financial Services Düsseldorf Food and Drink Fashion Education & Training Creative and Media (incl. Computer Games) Healthcare & Medical Biotech/Pharmaceuticals, Chemicals Berlin Transport (Airports, Railways, Ports, Logistics) Defence and Military Equipment Construction Security (Fire & Police) Environment Oil and Gas Agriculture; Water
Business Culture Germans have a reputation for being thorough, exact and direct – Give us much detail as possible (technical details) Germans are direct in expressing views and opinions –no hidden language or reading between the lines –clear, direct communication, concise presentation important English is common – but not in all industries Germans are impressed with quality, reliability and reputation They aim for long-term business relationships
Market characteristics Highly developed market International and domestic competition High quality Fierce competition Companies get many enquiries!
What German companies said during our research: “Information given on design and operation was not detailed enough and that a drawing would have been beneficial” “We are flooded with new enquiries and are very busy with active projects. “
Recommendations Know your Unique Selling Points Adapt the product to the German market (language, regulatory standards, business culture, pricing) Offer high quality and innovative products
Price and margin are key Focus on products in niche segments Have detailed plans on how to enter the market Define supply channel –which type of companies to partner with (agents, resellers) Visit German trade fairs
Provide trade literature –With USPs –A lot of technical information –References –In German
Conclusion Germans love technical details / approvals When taking on new partner, Germans take it very seriously Aim for long term relationships Once a contract is signed, you have a reliable, stable relationship in the 4 th largest market in the world!
How UKTI Germany can help you Flexible, tailor made service –Help you in defining your supply channel Type of companies to partner with –Identify potential German business partners for you –Help you to organise receptions, seminars and product launches
Case Study – Aerogistics Provider of surface treatments for the aerospace industry OMIS report to help find a suitable business development representative to work in Germany, on a part-time basis The report came back with a list of eight high quality candidates. Aerogistics shortlisted 3 companies, flew to Germany to conduct interviews UK Trade & Investment helped organise meetings “It has been a real success. Our representative has already secured a new contract worth £100,000 a year, and is currently negotiating another that will be worth £350,000 a year.” Tom Dawes, Managing Director Aerogistics
Contact Details Central Coordination Unit Düsseldorf Email firstname.lastname@example.org