Once again the German economy closed 2014 on a positive note: GNP growth of 1’6% and a 2% increase in imports over 2013. These figures confirm that Germany remains an attractive market for Spanish and other European exporters.
As in the majority of markets, potential exporters to Germany are encouraged to seek expert advice to determine the opportunities for them and to brush up on German bureaucracy and fiscal policies.
The German Branch of International Team Consulting has prepared a report on those industries that offer the best prospects for 2015.
We would like to stress the following:
Germany is the largest consumer of organic food in Europe and second to the USA in the world. Over the last 10 years, the Germans have shown an increasing tendency to “look after” themselves by eating a more balanced diet and consuming naturally produced foodstuffs.
The German market for organic produce closed 2014 with a record turnover of €7,910 million, which was a 4’7% increase over 2013. Growth since 2010 has averaged 6% and the increase forecast for 2015 is of between 4% and 6%. These data confirm the boom in organic food and make this an attractive, dynamic sub-sector.
Organic produce is distributed through two main channels in the German market: traditional food outlets and specialised organic food shops.
Amongst the traditional channels, which accounts for 54% of the market, the large chains such as Aldi, Lidl, Edeka and Rewe are the leaders. Specialised outlets account for 32%, whilst the remaining 14% is sold through bakers, delicatessens, direct and on-line sales.
For those companies contemplating the export of organic produce to Germany it is vital to create an accurate profile of the ideal distributor. Once you have established the profile, to a large extent your guarantee of success will depend on selecting the right distributor for you. This means that your initial search should be as thorough and painstaking as possible.
This is, of course, a wide and varied field made up of numerous industries, sectors and sub-sectors and, hence, the potential exporters are of a similarly varied nature.
One traditional target for sub-contractors in the automobile industry and this is still one of the bigger players in the field, although the medical and aeronautical industries are catching up quickly. Performance in the car industry was up last year and is expected to continue growing in 2015.
Although not a massive movement as yet, there is an increasing tendency for the buying groups in the automobile industry to look for more suppliers from European sources to the detriment of Asian manufacturers.
The Aeronautics Industry is another of the mainstays of the sub-contractor. Despite there being no reliable figures for the total contribution of the industry to the total turnover of sub-contractors in Germany, many sources in the industry confirm that it is growing substantially. Forecasts for the comping years predict that the aeronautical industry will become increasingly more significant as a market for industrial sub-contractors.
For those companies that wish to target Germany or those that wish to diversify their client base their, a first and vital step is to identify the main buying groups in your target market as they are responsible for a large percentage of purchases in the sector.
ITC has a branch office in Germany which is managed by experts in the German market. Please do not hesitate to contact us to find out how we can help YOU to enter the market there.
ITC Consultant Specialised in Germany