"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
Start up or developing a business in a new market is a complex process. On any given day, you'll deal with a new challenge, financing, (new) market challenge, customer niche, rules, custom & cultural issues, find a reliable partner, and other headaches. On top of all that, COVID-19 has introduced additional responsibilities.

Your company is unique. Your products, services, people and marketplace all make you different from any other manufacturer. But no matter how successful your business is, you are unknown in the new market. The following five challenges are those we most often hear from manufacturers:

Business model/concept
Cultural & communication
Rules, politics and regulation
Foreign policy
Financing
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 German market culture and 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' strategy and reactions.

To successfully develop or set-up your brand and business in Germany, knowing the local market structure and business concept/model, business culture, rules, shopping habits, language, market research and analysis, competitor research and analysis, thorough planning, communication, accurate execution... and reliable partners or joint ventures are essential. Therefore you need a German- based business consultant.
We know the German rules, culture, market, shopping habits, language and...;

We build or expand brand and businesses that are compatible with this market and culture.
Case Study
How not to enter the German market: The Example of Walmart

Wal-Mart is the biggest food retailer in the world and has a presence in several nations. In some nations (e.g. the US, Canada, China), Wal-Mart is a great success. However, Wal-Mart has failed in some countries (e.g. Germany, South Korea). First, we describe Wal-Mart's failure in Europe's largest economy. Second, we use Wal-Mart's experiences in Germany to illustrate some key principles related to product failure and product deletion. Wal-Mart's experiences are also an example of the importance to adapt to culture and rules when starting a business in a new country.

The German grocery industry
There is fierce competition in the German grocery industry, due to the increasing number of discount supermarket chains (KPMG 2006). As a result, there is low profitability in the food retail sector; profit margins range from 0.5 per cent to 1 per cent which is one of the lowest profit margins in Europe (Frankfurter Rundschau 2007). By contrast, profit margins in Great Britain are 5 per cent, in this same sector. In particular, Metro is a tough competitor, and it already applies some of Wal-Mart's successful strategies (e.g. related to economics of scale and low prices). Of course, Wal-Mart is interested in other metrics beyond profit (e.g. shareholder wealth, market share), but, as indicated above, profitability and margins are of key concern to retailers.

Wal-Mart: strategic concept
Wal-Mart is the world's largest retailer with approximately 6,500 stores worldwide (Business 2006). The main feature of Wal-Mart's business model is to cut costs (continuously) and therefore offer lower prices than their competitors. For instance, Wal-Mart has introduced new logistical technologies such as radio-frequency identification (RFID) to optimize its logistic processes. RFID is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. Wal-Mart tries to minimize labor costs by offering minimal health care plans. Wal-Mart pressures its suppliers to cut costs, on a continuous basis. In brief, Wal-Mart's managers are constantly seeking out ways to cut costs, and some of their successes are passed on to shoppers, in terms of lower prices.

Wal-Mart's entry into the German market
In 1997, Wal-Mart acquired over 21 stores from the supermarket chain "Wertkauf." One year later, Wal-Mart bought an additional 74 stores from the supermarket chain "Interspar". As a result, Wal-Mart became the fourth biggest operator of supermarkets in Germany (Lebensmittelzeitung 2006). The objective was to expand to 500 stores in Germany. However, the number of stores never exceeded the 95 stores that were originally purchased in the first two years. Wal-Mart's position in the marketplace deteriorated over the years. In 2002, Wal-Mart had some financial difficulties due to a low turnover which resulted in the dismissal of some employees. At the end of 2006, Wal-Mart was bought out by "Metro", one of Germany's largest retail groups. Finally, Wal-Mart left the German market with a loss of one billion dollars before tax (Manager-Magazin 2006).
Mis-steps in the german market

In general, there are five key issues related to Wal-Mart's ultimate withdrawal from Germany:
- Market culture/structure
- Business model/concept
- Cultural and communication
- Rules, politics and regulation
- Product and service
Market culture/structure
A retailer that wants to follow Wal-Mart's strategy of low prices needs to expand rapidly. In Germany, there not enough appropriate locations to support such expansion. As previously mentioned, Wal-Mart did not build their own stores but took over 21 existing "Wertkauf" supermarkets that had a totally different business model. The stores themselves were very small and had a limited range of goods. A related problem is that these stores were located far apart, which resulted in high logistical costs.
When entering a new market, it is important to anticipate competitors' reactions. In Germany, Wal-Mart's biggest competitor, Metro, wanted to expand their stores; at the same time, Metro wanted to prevent Wal-Mart from executing their expansion plans (Senge 2004). Many times, a product has to be deleted because the competition is too strong.

With the strategy of "Every day low prices," Wal-Mart is very successful in the United States and also in many other countries. In Germany, there is extreme competition in the retail food sector. Therefore, the German customer is quite accustomed to the low prices that are offered by numerous discount supermarket chains. For this reason, Wal-Mart's strategy of offering low prices did not create sufficient competitive advantage.
Business model/concept
There is fierce competition in the German grocery industry, due to the increasing number of discount supermarket chains (KPMG 2006). As a result, there is low profitability in the food retail sector; profit margins range from 0.5 per cent to 1 per cent which is one of the lowest profit margins in Europe (Frankfurter Rundschau 2007). By contrast, profit margins in Great Britain are 5 per cent, in this same sector. In particular, Metro is a tough competitor, and it already applies some of Wal-Mart's successful strategies (e.g. related to economics of scale and low prices). Of course, Wal-Mart is interested in other metrics beyond profit (e.g. shareholder wealth, market share), but, as indicated above, profitability and margins are of key concern to retailers.
Cultural and communication
When products are introduced, it is important to consider cultural factors. In this case, corporate culture played a key role. Wal-Mart's top executives decided to operate the German locations from their offices in the United Kingdom. Thus, Wal-Mart's "corporate language" was English. However, many of the older Wal-Mart managers in Germany do not speak English. As a result, there were often breakdowns in communication. Some managers of the acquired stores did not stay on after the Wal-Mart acquisition. Key business connections were lost. As a result, several key suppliers (e.g. Adidas, Samsonite, Nike) declined to work as suppliers for Wal-Mart. Wal-Mart did not just lose important suppliers; they also lost an important part of their range of goods (Senge 2004). The situation could have been improved by retaining and communicating effectively with the German managers who had know-how about the local market.
Rules, Politics and regulation
The managers of Wal-Mart were not sufficiently familiar with the laws and regulations in Germany, as they violated them several times. One of Wal-Mart's fundamental principles is to stay union free. However, in Germany, unions have a powerful position. Through collective bargaining and related tactics, they can have a strong influence on political decision making. Ver.di is a German union in the service sector. With 2.4 million members, it is one of the largest independent, trade unions in the world (Ver.di 2008).

According to the German Commercial Code, all incorporated companies are obligated to publish a financial statement, including a profit and loss statement. Due to the fact that Wal-Mart refused to publish their financial statements for the years 1999 and 2000, Ver.di sued in a court of law. Wal-Mart was sentenced to pay a fine. The coverage of this law suit in the German press led to a negative public image for Wal-Mart.

After the expansion strategy failed due to the lack of suitable store locations, Wal-Mart began a price war to drive small competitors out of business. The intention was to take over the stores of the insolvent supermarket chains and convert them into Wal-Mart stores. One part of the price war was to introduce a private label called "Smart Brand" and sell most of these products below manufacturing costs. The reaction of many competitors was to decrease their prices, which led to a profit setback for the entire industry. However, the Federal Cartel Office interceded and stopped the price war because there is a law in Germany that enjoins companies from selling goods below manufacturing costs on a continuing basis (Knorr and Arndt 2003).
Product and service


Wal-Mart planned to introduce a sophisticated customer service program which threatened many of its competitors because German discount supermarket chains often do not provide good customer service. Therefore, good customer service, combined with low prices, could have been a new market niche in Germany. One part of Wal-Mart's customer service program was called the "ten foot rule". Every ten feet, a service employee offered some help to the customer (Knorr and Arndt 2003). However, the customer reaction was rather negative, because customers who normally do their grocery shopping in discount supermarket chains are used to self-service. They do not necessarily expect to talk with employees.
Notice: This example/text/information is just for a better understanding of the page subject. We assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics and datas can changes or up-to-dates.
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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To successfully develop your brand or set-up your business in Germany, knowing the local business language, market and business culture, market research and analysis, competitor research and analysis, business concept, thorough planning, accurate execution... and reliable partners or joint ventures are essential. Therefore you need a German based business consultant.

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