"Made in Germany" ranks first worldwide!
Germany
Germany is the largest economy in Europe and the fourth-largest economy in the world. Driven by industrial production, the country is the third-largest exporter and maintains the highest trade surplus in the world. The country also houses nearly 40 of the world's 500 largest publicly-traded companies, which makes it an important country for international investors.

Germany's largest companies can be found in the DAX 30 Index, which is similar to the Dow Jones Industrial Average in the United States, and contains the 30 largest Germany companies by market capitalization trading on the Frankfurt Stock Exchange. The index contains some household names like Adidas AG, BASF SE, BMW AG, Bayer SE, Siemens AG, MAN SE, and many others.
Made in Germany
The "Made in Germany" label
According to a recent study, goods from Germany and the EU are the most popular worldwide.

Germany. High-quality and durable is what people all over the world associate with products bearing the "Made in Germany" label". In existence for 130 years now, it was originally intended as warning about cheap copies from Germany: Back then, knife manufacturers in Sheffield were complaining about inferior-quality copies of their products from Germany; this marked the beginning of the label, which within a very short space of time changed completely and became a quality seal.
"Made in Germany" The world's most popular label
Nowadays, "Made in Germany" products are known for their high quality. And there's more: "Made in Germany" is even the world's most popular label. This is the finding of the Made-in Country Index, a study conducted by the statistics portal Statista in collaboration with the market research company Dalia Research. Some 43,000 consumers in countries were asked for their opinion. "Made in Switzerland" and "Made in EU" come 2nd and 3rd respectively. The labels from Great Britain, Sweden, Canada, Italy, Japan, France, and the USA follow. Those questioned were of the opinion that Germany primarily leads the way in the categories "Quality" and "Safety", while products from Switzerland stand out with regard to "Status Symbol" and "Authenticity".
"Made in Germany" ranks first worldwide
According to a Swiss study, German products and services are the most popular worldwide.
They are more popular than ever: products and services "Made in Germany" enjoy the best image worldwide. This was the finding of a study by the University of St Gallen in Switzerland that surveyed over 7,900 people in 15 countries. Germany is followed in the ranking by Switzerland and Japan. According to the study, German products score points inter­nationally when it comes to price-per­formance ratio and innovation. Study participants were also asked about the values they attribute to different countries. They said Germany is cosmopolitan with strong traditions and high standards in research. @deutschland.de
Challenge
How not to enter the German market: The Example of Walmart
The failure of Walmart in Germany is a notable example of how not to go about taking your company into the German market. Walmart's mistakes provide a lesson from which we can all learn.

In the late 1990s Walmart based its entry into the German market on a series of strategic business acquisitions. They acquired the twenty-one stores of the well-known Wertkauf chain in December 1997 paying an estimated $1.04 billion for a chain with annual revenues of €1.2 billion. Then in 1998 Walmart purchased seventy-four hypermarkets belonging to Spar Handels AG, the German arm of France's Intermarché group. The chain had revenues of €850 million and Walmart paid €560 million.

Despite this promising foothold in the German market things quickly went wrong for Walmart. Their mistakes fell into several key areas:

Entry by Acquisition
Walmart entered the German market by means of two major acquisitions. The first, the Werkauf chain, was an inspired strategic move. Werkauf had prime locations, good sales and a capable management team. The later acquisition of a number of hypermarkets from Spar Handels AG, on the other hand, was anything but a shrewd move. Spar's stores were mainly situated in less well-off inner city areas and the majority were desperately in need of upgrading. Furthermore, most of the stores acquired were on a leasehold basis so Walmart did not even gain the real estate. Even worse for Walmart was the fact that turnover per square metre was amongst the worst in the German retail market.
Management by 'hubris and clash of cultures'
An authoritative report by the University of Bremen highlighted the problems caused by the blinkered attitude of Walmart's US managers that they refer to as 'hubris and clash of cultures'. Walmart's American senior executives who were assigned to manage the operation in Germany had little or no knowledge of German business culture, refused to learn German and ignored the advice of the German senior managers they had taken on board as part of their acquisition process.

Walmart quickly lost large numbers of their German store managers and supervisory staff who took jobs elsewhere because they were unhappy with the American company's management style. These key staff cited low wages and alleged poor quality produce as their primary reasons for leaving. Managers were also unhappy with the US practice of moving managers on to another store every year or two.

The approach by which Walmart had achieved success in the United States and elsewhere did not fit in with the culture of Germany. Industry and commerce in Germany, like much of continental Europe, is highly-unionised. German trades unions exercise enormous power both in the workplace and in the political sphere. However, Walmart, in common with many American companies, is a strictly non-union employer.

When faced with mounting employee costs in Germany Walmart's answer, as it would be in the US, was to start laying-off staff. However, they were taken by surprise by the heavy cost of making employees redundant in the highly-regulated German economy and their financial difficulties were exacerbated.
A failure of strategy

A strategy of ruthlessly undercutting competitors with their 'everyday low prices' guarantee had worked for Walmart in every other market. To the company's consternation the strategy back-fired in Germany. Walmart's major German competitors, such as Aldi and Lidl, hit back and cut their own prices even more drastically. Furthermore, a number of German newspapers and consumer organisations analysed Walmart's 'everyday low prices' promise and publicly concluded that it was meaningless.

German consumers did not like Walmart's US-style approach to customer service either. They found the in-store 'greeters' and staff constantly approaching customers to guide them far more intrusive than they were used to. Walmart found that their usual customer service approach was ineffective in Germany and was very expensive in terms of staffing costs.
Walmart had succeeded in the US by being one of the first retailers to offer customers a 24/7 retail experience. With legislative restrictions on opening hours, however, they could not launch this strategy into the German market.
Infringements of German laws and regulations
Walmart wilfully failed to comply with a number of rules and regulations of Germany's highly-regulated retail market. This was largely because of the company's unwillingness to adapt to German culture and their refusal to consider abandoning strategies that had been so successful elsewhere. The result of these repeated infringements was a continuing cycle of heavy fines and negative publicity. Amongst the areas of legislation where Walmart fell foul were:
Breaches of German antitrust legislation through their discounting strategy;
Failures to comply with the requirements to publish financial information; and
Failure to institute a deposit/refund strategy for the plastic and metal drinks containers on sale in their stores.
Conclusions


By failing to follow the kind of basic, common-sense rules for doing business in Germany, the ones that we have discussed in this piece, Walmart entered the new millennium with mounting year-on-year losses in their German operation. In July 2006 they conceded defeat by selling-off their 85 German hypermarkets to a local competitor, Metro. In doing so they sustained a loss of nearly one billion dollars. Walmart are an efficient, highly successful multi-national company. However, by failing to take account of the nature of the German market (or German business culture), they came badly unstuck in that country. ©howtogermany
Solution
Wal-Mart tried to apply its US success formula in an unmodified manner to the German market. As a result, they didn't have sufficient knowledge about the market structure and key cultural/political issues. In addition, structural factors prevented Wal-Mart from fully implementing its successful business model.
When entering a new market, it is important to anticipate competitors' reactions.

To successfully develop or set-up your brand and business in Germany, knowing the local market structure and business model, culture and communication, market research and analysis, competitor research and analysis, thorough planning, accurate execution... and reliable partners or joint ventures are essential. Therefore you need a German based business consultant.
Brand in Germany
The 50 most valuable brands in Germany (in 2018) have a combined value of €263 billion, according to a new study, which places Germany's top companies ahead of their peers in the UK and France. SAP, Deutsche Telekom, BMW, Daimler and Deutsche Post lead the way, with automotive the country's standout sector.
The analysis, conducted by professional services giant WPP, assessed the 'brand value' of Germany's top companies – which is a measure of how much a brand alone contributes to corporate value, both in terms of financial value and non-quantitative components. The data found that similar to in other countries, but more so in Germany, value is concentrated at the top of the ranking, with the top two brands – SAP and Deutsche Telekom – between them accounting for 29% of the value of the leading 50 brands combined. In comparison, in the UK, the top two brands provide 21% of the top 50's value.

Unsurprisingly, the automotive industry plays a key role in Germany's brand elite. There are five leading global car brands in the German Top 50, a feat which is unmatched in any other national WPP ranking for Western economies. Combined, BMW, Mercedes-Benz, Porsche, Audi and Volkswagon account for a staggering 22% of the total €263 billion brand value. "Germany itself has become synonymous with the design and engineering of the many automotive brands it has produced. These are brands that have made consumers all over the world willingly pay a premium for "Vorsprung durch Technik", without even knowing quite what it meant," said David Roth, CEO of The Store, WPP's division that serves the retail and fast moving consumer goods sectors.

Germany is also the only European market to be led by a technology brand. With a brand value of $48.9 billion, SAP is the undisputed leader in Germany, alone accounting for 16% of the value of the entire German top 50. The company, which was founded in the early 1970s by five entrepreneurial engineers with a vision to change the way companies do business, is today a world leader in enterprise applications – 87% of Forbes Global 2000 companies are a user of SAP software.

Given the strength of Germany's reputation as a leader in the sector in finance, the relatively small influence of financial services brands is apparent – there are only a handful of banking and insurance businesses in the top 50, including Deutsche Bank and Allianz. Across the board, the top 50 is comprised of brands from 19 different categories, spanning home appliance, apparel, beer, travel, aviation, grocery and media, among others. ©consultancy
1. SAP
Brand Value: $48,943 million
Headquarter City: Walldorf
Category: Technology
Year Formed: 1972
2. Deutsche Telekom
Brand Value: $39,215 million
Headquarter City: Bonn
Category: Telecom Providers
Year Formed: 1995

3. BMW (Bayerische Motoren Werke)
Brand Value: $24,606 million
Headquarter City: Munich
Category: Cars
Year Formed: 1916

4. Daimler
Brand Value: $23,587 million
Headquarter City: Stuttgart
Category: Cars
Year Formed: 1883

5. Deutsche Post
Brand Value: $18,344 million
Headquarter City: Bonn
Category: Logistics
Year Formed: 1969

6. Siemens
Brand Value: $15,224 million
Headquarter City: Berlin/Munich
Category: Conglomerate
Year Formed: 1847

7. Aldi
Brand Value: $12,893 million
Headquarter City: Essen (ALDI Nord) and Mülheim (ALDI Süd)
Category: Retail
Year Formed: 1913

8. Adidas
Brand Value: $11,820 million
Headquarter City: Herzogenaurach
Category: Apparel
Year Formed: 1949

9. Bosch (part of Robert Bosch)
Brand Value: $9,816 million
Headquarter City: Munich
Category: Conglomerate
Year Formed: 1886

10. Audi
Brand Value: $8,580 million
Headquarter City: Ingolstadt
Category: Cars
Year Formed: 1909

11. Lidl
Brand Value: $8,178 million
Headquarter City: Neckarsulm
Category: Retail
Year Formed: 1973

12. Allianz
Brand Value: $7,707 million
Headquarter City: Munich
Category: Insurance
Year Formed: 1890

13. Nivea (part of Beiersdorf)
Brand Value: $7,344 million
Headquarter City: Hamburg
Category: Personal Care
Year Formed: 1911

14. Fanta (part of The Coca-Cola Company)
Brand Value: $6,315 million
Headquarter City: Atlanta, USA
Category: Soft Drinks
Year Formed: 1940

15. Porsche (part of VW)
Brand Value: $5,658 million
Headquarter City: Stuttgart
Category: Cars
Year Formed: 1931

16. Knorr (part of Unilever)
Brand Value: $4,512 million
Headquarter City: Heilbronn
Category: Food & Dairy
Year Formed: 1838

17. Volkswagen
Brand Value: $4,136 million
Headquarter City: Wolfsburg
Category: Cars
Year Formed: 1937

18. Deutsche Post
Brand Value: $3,749 million
Headquarter City: Bonn
Category: Logistics
Year Formed: 1947

19. Deutsche Bank
Brand Value: $3,591 million
Headquarter City: Frankfurt am Main
Category: Banks
Year Formed: 1870

20. Sparkassen-Finanzgruppe
Brand Value: $3,137 million
Headquarter City: Berlin
Category: Banks
Year Formed: 1778

21. 1&1 (part of United Internet)
Brand Value: $2,706 million
Headquarter City: Montabaur
Category: Telecom Providers
Year Formed: 1988

22. EDEKA
Brand Value: $2,341 million
Headquarter City: Hamburg
Category: Retail
Year Formed: 1898

23. DPD (part of Le Groupe La Poste)
Brand Value: $2,316 million
Headquarter City: Aschaffenburg
Category: Logistics
Year Formed: 1976

24. Schwarzkopf (part of Henkel)
Brand Value: $2,303 million
Headquarter City: Düsseldorf
Category: Personal Care
Year Formed: 1904

25. Miele
Brand Value: $2,250 million
Headquarter City: Gütersloh
Category: Home Appliances
Year Formed: 1899

26. Lufthansa
Brand Value: $2,142 million
Headquarter City: Frankfurt
Category: Airlines
Year Formed: 1926

27. Hugo Boss
Brand Value: $2,072 million
Headquarter City: Metzingen
Category: Apparel
Year Formed: 1924

28. Beck's (part of Anheuser-Busch InBev)
Brand Value: $1,946 million
Headquarter City: Leuven, Belgium
Category: Beer
Year Formed: 1873

29. Metro Wholesale & Food Specialist
Brand Value: $1,806 million
Headquarter City: Düsseldorf
Category: Retail
Year Formed: 1964

30. Puma
Brand Value: $1,369 million
Headquarter City: Herzogenaurach
Category: Apparel
Year Formed: 1948

31. REWE Group
Brand Value: $1,336 million
Headquarter City: Cologne
Category: Retail
Year Formed: 1927

32. TUI
Brand Value: $1,257 million
Headquarter City: Hannover
Category: Travel Agencies
Year Formed: 1923

33. Kaufland Stiftung & Co.
Brand Value: $1,249 million
Headquarter City: Neckarsulm
Category: Retail
Year Formed: 1984

34. Commerzbank
Brand Value: $1,219 million
Headquarter City: Frankfurt am Main
Category: Banks
Year Formed: 1870

35. Unicredit
Brand Value: $999 million
Headquarter City: Munich
Category: Banks
Year Formed: 1780

36. Krombacher Brauerei Bernhard Schadeberg
Brand Value: $919 million
Headquarter City: Kreuztal-Krombach
Category: Beer
Year Formed: 1803

37. Otto Group
Brand Value: $912 million
Headquarter City: Hamburg
Category: Retail
Year Formed: 1949

38. West (part of Imperial Brands)
Brand Value: $877 million
Headquarter City: Hamburg
Category: Tobacco
Year Formed: 1981

39. Tchibo (part of Maxinvest)
Brand Value: $854 million
Headquarter City: Hamburg
Category: Retail
Year Formed: 1949

40. ERGO (part of Muenchener Rueckversicherungs-Gesellschaft)
Brand Value: $810 million
Headquarter City: Düsseldorf
Category: Insurance
Year Formed: 1997
41. Hasseröder (part of Anheuser-Busch InBev)
Brand Value: $792 million
Headquarter City: Leuven, Belgium
Category: Beer
Year Formed: 1872

42. OBI (part of Tengelmann Warenhandelsgesellschaft)
Brand Value: $759 million
Headquarter City: Wermelskirchen
Category: Retail
Year Formed: 1970

43. Hipp
Brand Value: $744 million
Headquarter City: Pfaffenhofen an der Ilm
Category: Food & Dairy
Year Formed: 1932

44. Alfred Ritter
Brand Value: $706 million
Headquarter City: Waldenbuch
Category: Food & Dairy
Year Formed: 1912

45. Hermes
Brand Value: $706 million
Headquarter City: Hamburg
Category: Logistics
Year Formed: 1972

46. Bild (part of Axel Springer)
Brand Value: $696 million
Headquarter City: Berlin
Category: Entertainment
Year Formed: 1952

47. Aral (part of BP)
Brand Value: $618 million
Headquarter City: Bochum
Category: Motor Fuels
Year Formed: 1898

48. Dr. August Oetker
Brand Value: $610 million
Headquarter City: Bielefeld
Category: Food & Dairy
Year Formed: 1891

49. Nestlé
Brand Value: $519 million
Headquarter City: Nonnweiler-Otzenhausen
Category: Food & Dairy
Year Formed: 1968

50. HUK-Coburg
Brand Value: $518 million
Headquarter City: Coburg
Category: Insurance
Year Formed: 1933

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