Germany –
Opportunities and Potentials
 Ljubljana
 15. Mai 2012
Typical German?
Vrtni
palček
Germany at a glance
• No sign of a sense of crisis
• Strong recovery after financial crisis continued
in 2011.
• Dynamic GDP growth of 3.0% in 2011
• Situation assessment remains excellent ...
• … contrary to the fears in the fall
• Private consumption is increasingly taking over
the role of the supporter of the economy
Germany at a glance
• The dynamism shown by exports in the
previous 2 years continues the level of the longterm average
• The investment intensions of the companies
remains pleasingly high
• Companies' willingness to recruit remains at a
high level. The shortage of skilled labour is
again gaining in importance as a business risk
for companies
Germany at a glance
Indicators
GDP
Private consumption expenditure
Government final consumption
Gross fixed captial formation (GFCF)
GFCF in machinery and equipement
GFCF in construction
Export (Mrd. EUR)
-Growth rate
Import (Mrd. EUR)
-Growth rate
GDP per Head (EUR)
Unemployment (in Mil.)
Employment
(change in thousand)
Quelle Commerzbank, Statistisches Bundesamt Deutschland
2010
2011 Forecast
3,7
3,0
1,0
0,6
1,5
1,2
1,7
1,2
1,0
5,5
6,5
1,6
10,5
8,3
2,0
2,2
5,4
1,0
959.479 1.038.156 1.074.492
13,7
8,2
3,5
806.164 864.208 903.097
11,7
7,2
4,5
30.554
3,24
2,98
2,83
191
541
250
Germany at a glance
Share of Total GDP and Population in the European Union 2010
GERMANY
France
UK
Spain
Netherlands
Poland
Czech Rep.
Slowak Rep.
USA
Japan
EU-27
Eurozone
GDP (in EUR Share of Total Population Share of Total
billion)
GDP (EU-27) (in million) Population (EU-27)
2.477
20%
82
16%
1.933
16%
65
13%
1.697
14%
62
12%
1.063
9%
46
9%
588
5%
17
3%
354
3%
38
8%
145
1%
11
2%
66
1%
5
1%
10.957
309
4.122
128
12.284
501
9.170
331
Slovenian-German Economic Relations
German-Slovenian foreign trade balance (in 1000 EUR)
5,000,000
4,000,000
3,000,000
Export to Germany
Import from Germany
2,000,000
Trade Balance
1,000,000
0
2005
2006
2007
-1,000,000
Quelle: Statistikamt Slowenien
2008
2009
2010
2011
1000 EUR
Country
Total
2011
Import share
(%)
2011
1000 EUR
Import
100 22.158.543
Country
Total
Export
Export share
(%)
20.477.552
100
Germany
18,84
4.174.078
Germany
4.387.773
21,43
Italy
18,29
4.052.888
Italy
2.470.512
12,06
Austria
11,72
2.596.669
Austria
1.704.945
8,33
France
4,76
1.056.066
France
1.402.855
6,85
Croatia
3,89
862.603
Croatia
1.375.565
6,72
Netherlands
3,28
727.570
Hungary
619.719
3,03
Serbia
1,87
414.888
Serbia
597.352
2,92
Russia
1,74
386.539
Russia
542.977
2,65
Quelle: Statistikamt Slowenien
Germanys Main Import Products (bil. EUR)
Wood Products
Furniture
Textiles
Paper
Metal Products
Rubber and Plastics
Agriculture Products
Clothing
Phamraceutical Products
Electrical Products
Food & Beverage
Row Metal
Machinery
Chemical products
Automotive and Parts
Electronic and ICT Products
Quelle: Statistikamt Deutschland
5.3
9.5
10.3
14.5
23.2
25.3
26.7
27.3
38.9
42.5
43.3
61.6
70.7
71.7
81.2
89.9
Slovenian-German Economic Relations
Market share of German federal states in
Slovenian imports from Germany
5%
8%
18%
5%
Baden-Württemberg
Bayern
Nordrhein-Westfalen
16%
17%
Market share of German federal states in
Slovenien exports to Germany
7%
5%
8%
31%
Hessen
Niedersachsen
Neue Bundesländer
Baden-Württemberg
Bayern
Nordrhein-Westfalen
20%
Hessen
22%
Niedersachsen
Neue Bundesländer
Quelle: Statistikamt Slowenien
Emerging Industries
Energy Efficiency Sector
Creating the Future for a Clean Environment
Industry & Market Numbers
• market leader in energy efficiency
technologies
• turnover of about EUR 67 billion per year
• double-digit growth rates expected in coming
years
• 1/3 of companies active in the sector realize
profit margins of over 10%
• average workforce growth of about 15% per
year
Safety & Security Industry
"Made in Germany" for Future Security
Industry & Market Numbers
• Largest market in Europe
• High market potential with industry turnover of 20.3 billion Euro in
2008
• Industry forecast to record 55% growth by 2015
• IT security will grow by 124% within the next six years
• Identification, authentication, and biometrics revenue forecast to
increase by 87% by 2015
• Market for protection technologies against theft, burglary, and assault
expected to grow by 33% through 2015
• Record IT security hardware and software spending of 2.3 billion Euro
in 2008
ICT Industry
Germany's ICT Industry: Shaping Europe’s Digital Future
Industry & Market Numbers
•
•
•
•
Europe’s largest ICT market in terms of revenue volume
(20 percent of total EU market volume).
With 5.5% global market share, German ICT industry is
ranked fourth worldwide.
Turnover of EUR 137 billion
Germany’s ICT industry employs a workforce of around
850,000
ICT Industry
Germany's ICT Industry: Shaping Europe’s Digital Future
Growth Areas
IT Security: The market for IT
security is growing due to
steadily increasing risk
potential
Cloud Computing: There is
significant international demand
for secure and cost-effective cloud
solutions and services
Smart Grids: Increasing importance of sustainable
energy supply offer great opportunities for smart
grid adoption and ICT solutions for smart grid.
Key Sectors in Germany
•
Automotive
•
Machinery & Equipment
•
Metal and Metal Processing Industry
• Plastic Industry
•
•
•
•
•
Electronic & Microtechnology
Consumer Goods & Retail
Food & Beverage, Organic Food
Wood & Furniture Industry
Construction Industry
Automotive Industry
Driving Performance through Technology
Industry & Market Numbers
• Europe's largest automobile market
• 5.5 million passenger vehicles manufactured and 2.9 million
registrations in 2010
• Average manufacturer and supplier turnover of more than EUR
300 billion
• 30 final assembly plants with a production capacity of over one
third of total automobile production in Europe
• The German auto industry invested EUR 19.6 billion in R&D in
2010 (a 3.1 percent increase on the previous year)
• 3,650 patents per year (= 10 patents a day
Automotive Industry
Market Potential
• Germany has a very competitive auto parts market with
many domestic and foreign manufacturers
• Suppliers are mostly specialized
• New Automotive Deal
• Consolidation process-oriented sectors
• Just in Time  Just in Sequence
• After sales market is expected to grow in the coming years
Automotive Industry
Smart Mobility
Electric mobility is the technology of
the future but existing technologies
must be optimized
Opportunities for Automotive Suppliers
The demand for new technology for this market is enormous
Vehicle manufacturers require core components such as batteries
and electric motors for electric.
Machinery & Equipment Industry
Market Leadership Powered by German Engineering
Industry & Market Numbers
•
•
•
•
Annual turnover 173 billion Euro
Growth rates between of 7 and 12 percent
Domestic market: 87 billion Euro
Highly innovative sector producing 28% of the worlds
mechanical engineering patents
• Technical fields with high import rates: drive technology
(10.7%), air technology (9.3%), valves and fittings (6.7%),
construction equipment (6.2%)
Machinery & Equipment Industry
Market Potential
• Imports: EUR39.1 billion in 2009
• One of the fastest growing industry sectors in Germany
• High domestic demand from industries like the automotive,
electronics, chemicals, food as well as the renewable
energies sector
• very. attractive to foreign companies seeking to sell their
high-tech products and components abroad
Metal & Metal Processing Industry
Industry & Market Numbers
• Metal and metal products imports totaled EUR 68.7
billion in 2010
• Sixty two percent of the imported metal products came
from the European Union
• In 2009, 15 million tons of steel were processed in the
production of metal products
• The non-ferrous metal industry registered sales of EUR
43.5 billion in 2010
Plastics Industry
Germany is Europe's No.1 Plastics Location
Industry & Market Numbers
• Leadership in plastics production and consumption, export and
import, and in investment in fixed assets and expenditure in
R&D
• Turnover EUR 88 billion, 7,200 companies, 440,000 employees
• About 70 application-oriented university and non-university
research institutes in the field of polymer and materials research
in close collaboration with the plastics industry
• Over 40 regional plastics clusters, innovative networks and
competence centers
Electronics & Microtechnology
Your Market for Next-Generation Technology
Industry & Market Numbers
•
•
•
•
•
•
Turnover of 165 billion Euro in 2010
Market is estimated to grow to 180 billion Euro in 2011
Fourth largest industry segment in Germany by revenue (2010)
12 billion Euro R&D expenses annually
Microelectronics is one of our fastest-growing industry sectors
market potential for automotive and industry electronics
Consumer Goods & Retail
Large Markets Create Major Opportunities
Industry & Market Numbers
• Europe's leading consumer market with 82 million affluent
consumers
• Private spending remained stable in 2008 at EUR 1,854
billion
• Private spending in the leisure and apparel segments is
permenently growing due to higher private income
• Germany's consumer electronics market fasted growing
segment
Food & Beverage Industry
Supplying the Full Spectrum of Consumer Needs
Industry & Market Numbers
• Germany is Europe's second largest food producer with sales
of 149.5 billion Euro in 2010
• Germany is a net importer of food & beverage products
• Largest sector sub-segments in 2009: meat (22.7%), dairy
(15.4%), confectionery food (9.4%), and baked goods (8.7%)
• Major national and international players, including Dr. Oetker
Group, Südzucker AG, Vion Food Group, Kraft Foods
Deutschland GmbH, Nestlé, etc
Food & Beverage Industry
Supplying the Full Spectrum of Consumer Needs
Market trends
• High demand for health and wellness as well as functional
food products to prevent or overcome conditions including
diabetes, high blood pressure and cholesterol
• Movement for organic food and “free of” foods e.g. lactose
and gluten-free products
• Driving demand for highly convenient foodstuffs including
ready-to-eat meals, frozen foods, desserts, and baked goods
• Ethnic foods, beauty foods and fair trade products
Market Potential
• Large size of the German market in the food and
beverage sector are very attractive to exporters worldwide
• German consumers are generally well informed.
They expect high quality and low prices for their food and
beverage products
Market Access
• The German food & beverage industry is highly fragmented and
competitive.
• Exporting companies should be aware that product packaging is
very important to German consumers since they are highly
environmentally conscious
• Manufacturers, importers, distributors and retailers must make
sure that their packaging materials for their food products
comply with the EU's and Germany's domestic regulations in
terms of recycling and disposal. There are several dual system
companies licensed in Germany offering various waste disposal
schemes
Wood & Furniture Industry
• German forest are the greatest wood
supplier in Europe
• Forest cluster and timber employ more
than the automotive industry
• Germany is the largest furniture sales
market in Europe, per capita consumption is 360 euro per
person (total: 29 bil. €), ranked first in Europe;
• Germany imports about 14,8 bil € per year
• German furniture sales system is highly concentrated and
scale-developed;
• Large chains (IKEA, Höffner, XXL Lutz) are dominating the
market;
• German consumer expect high quality for best (lowest) price;
Construction industry
• The construction industry is one of the most important
sectors of the German economy
• Germany’s Construction Industry: Strong Growth Followed by
Stagnation
• Construction Work on Existing Buildings Dominates
• Total market volume: 312,7 bil EUR
• Residencial construction: 179 bil EUR
• Energy related modernization: 57,5%
TOP Regions
Quelle: AHK
Ranking of the 82
Regions
1
2
Region
Grade
Frankfurt
Offenbach
2,43
2,55
3
Aschaffenburg
2,62
4
5
6
7
38
50
59
63
Hamburg
Köln
Stuttgart
München
Leipzig
Hannover
Berlin
Dresden
2,65
2,65
2,67
2,68
3,02
3,1
3,21
3,31
Requirements of the German Market
Foreign companies face in the processing of the German
market entry a variety of problems and challenges
• Lack of market information
• Problems by finding a suitable
business-partner
• Language and communication
• Image of the own products
• Lack of qualified personnel
• Market conditions
• Market entry costs
Sales in Germany
Marketing-Mix
Marketing Tools
Very important Less important
unimportant
Fairs
63
28
9
Presentations
62
29
9
Fact-Finding Missions
61
29
10
Brochure / Catalogs
43
47
10
Direct Marketing(Mailing)
33
45
22
Quelle: AHK
e-marketing
26
49
25
Advertisement
24
51
25
Retail and Wholesale
Distribution channels vary considerably depending on product
and industry
Line of Business
Recommendation
textile industry
Agents
food and beverage
Wholesale, agent
metal products, automotive, mechanical
engineering
Direct Sales, agent
automotive, mechanical engineering
Subsidary
How to find a partner?
The German Chamber Network
"AHK – well connected worldwide"
How to find a partner?
"AHK – well connected worldwide"
… 80 countries
..120 offices
… 1.400 employees
.. 50.000 member worldwide
98% of overall German trade
“AHK – worldwide competent on-site”
How to find a partner?
AHK Slovenia –
Your bridge to the German Market
We…
Provide information
Solve problems
Offer service
Establish contacts
.
Market entry to Germany
Whatever type of business you are looking for with Germany, the German-Slovene
Chamber of Industry & Commerce can help. As a German Bi-lateral Chamber (AHK), we
have many years of experience of finding Slovene companies the right business partner.
We can assist Slovene agents to expand their range with new, innovative German products
or services help and also help Slovene exporters to make contact with potential
customers, wholesalers and agents in Germany.
Investing in Germany
International matchmaking events
.
Legal services for Germany
Information about German companies
Debt collection in Germany
Legal information about Germany
Employees
Commercial agents
Starting a business in Germany
Tax services for Germany
German VAT returns
Reclaim of German VAT
One of the most important marketing tools are fairs and
exhibitions
The AHK Slovenija website should be your
first stop when looking for information on
trade shows in Germany
www.dihk.si
Quelle: Austellungs- und Messeauschuss der Deutschen Wirtschaft
Our Partners in Germany
Information Center
Do you have further questions about the German Market?
Contact us directly. We will be glad to answer your questions.
Gertrud Rantzen
Predsednica
Telefon: +386 252 88 63
E-Mail: gf@ahkslo.si
http://slowenien.ahk.de