Germany – Opportunities and Potentials
Ljubljana 15. Mai 2012
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 long-term 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
Quelle Commerzbank, Statistisches Bundesamt Deutschland
Indicators 2010 2011 ForecastGDP 3,7 3,0 1,0Private consumption expenditure 0,6 1,5 1,2Government final consumption 1,7 1,2 1,0Gross fixed captial formation (GFCF) 5,5 6,5 1,6GFCF in machinery and equipement 10,5 8,3 2,0GFCF in construction 2,2 5,4 1,0Export (Mrd. EUR) 959.479 1.038.156 1.074.492 -Growth rate 13,7 8,2 3,5Import (Mrd. EUR) 806.164 864.208 903.097 -Growth rate 11,7 7,2 4,5GDP per Head (EUR) 30.554 Unemployment (in Mil.) 3,24 2,98 2,83Employment (change in thousand) 191 541 250
Germany at a glanceShare of Total GDP and Population in the European Union 2010
GDP (in EUR billion)
Share of Total GDP (EU-27)
Population (in million)
Share of Total Population (EU-27)
GERMANY 2.477 20% 82 16%France 1.933 16% 65 13%UK 1.697 14% 62 12%Spain 1.063 9% 46 9%Netherlands 588 5% 17 3%Poland 354 3% 38 8%Czech Rep. 145 1% 11 2%Slowak Rep. 66 1% 5 1%USA 10.957 309 Japan 4.122 128 EU-27 12.284 501 Eurozone 9.170 331
2005 2006 2007 2008 2009 2010 2011
-1,000,000
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Export to GermanyImport from GermanyTrade Balance
Slovenian-German Economic Relations
German-Slovenian foreign trade balance (in 1000 EUR)
Quelle: Statistikamt Slowenien
Quelle: Statistikamt Slowenien
1000 EUR 2011 1000 EUR 2011
CountryImport share
(%) Import Country Export Export share (%)
Total 100 22.158.543 Total 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 Deutschland
Electronic and ICT ProductsAutomotive and Parts
Chemical productsMachineryRow Metal
Food & BeverageElectrical Products
Phamraceutical ProductsClothing
Agriculture ProductsRubber and Plastics
Metal ProductsPaper
TextilesFurniture
Wood Products
89.981.2
71.770.7
61.643.342.5
38.927.326.7
25.323.2
14.510.39.5
5.3
Germanys Main Import Products (bil. EUR)
Market share of German federal states in Slovenien exports to Germany
Market share of German federal states in Slovenian imports from Germany
Quelle: Statistikamt Slowenien
Slovenian-German Economic Relations
18%
16%17%
5%
5% 8%
Baden-WürttembergBayernNordrhein-WestfalenHessenNiedersachsenNeue Bundesländer
31%
22%20%
5%7% 8%
Baden-WürttembergBayernNordrhein-WestfalenHessenNiedersachsenNeue Bundesländer
Emerging IndustriesEnergy Efficiency SectorCreating 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
• 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
Industry & Market Numbers
ICT Industry Germany's ICT Industry: Shaping Europe’s Digital Future
• 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
Industry & Market Numbers
ICT Industry Germany's ICT Industry: Shaping Europe’s Digital Future
Cloud Computing: There is significant international demand for secure and cost-effective cloud solutions and services
Growth Areas
Smart Grids: Increasing importance of sustainable energy supply offer great opportunities for smart grid adoption and ICT solutions for smart grid.
IT Security: The market for IT security is growing due to steadily increasing risk potential
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 IndustryDriving Performance through Technology
• 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
Industry & Market Numbers
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
Automotive IndustrySmart MobilityElectric mobility is the technology of the future but existing technologies must be optimized
Opportunities for Automotive SuppliersThe demand for new technology for this market is enormous
Vehicle manufacturers require core components such as batteries and electric motors for electric.
Machinery & Equipment IndustryMarket Leadership Powered by German Engineering
• 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%)
Industry & Market Numbers
Machinery & Equipment Industry
• 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
.
Market Potential
Metal & Metal Processing Industry
• 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
Industry & Market Numbers
Plastics IndustryGermany is Europe's No.1 Plastics Location
• 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
Industry & Market Numbers
Electronics & MicrotechnologyYour Market for Next-Generation Technology
• 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
Industry & Market Numbers
Consumer Goods & RetailLarge Markets Create Major Opportunities
• 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
Industry & Market Numbers
Food & Beverage IndustrySupplying the Full Spectrum of Consumer Needs
• 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
Industry & Market Numbers
Food & Beverage IndustrySupplying the Full Spectrum of Consumer Needs
• 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 trends
• 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 Potential
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 salesmarket 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;
• 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%
Construction industry
TOP Regions
Ranking of the 82 Regions
Region Grade
1 Frankfurt 2,43
2 Offenbach 2,55
3 Aschaffenburg 2,62
4 Hamburg 2,65
5 Köln 2,65
6 Stuttgart 2,67
7 München 2,68
38 Leipzig 3,02
50 Hannover 3,1
59 Berlin 3,21
63 Dresden 3,31Quelle: AHK
Requirements of the German Market
Foreign companies face in the processing of the German market entry a variety of problems and challenges
• Market conditions
• Market entry costs• Lack of qualified personnel
• Image of the own products• Language and communication
• Problems by finding a suitable business-partner
• Lack of market information
Sales in Germany
Marketing-Mix
Quelle: AHK
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
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 worldwide98% 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
.
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.
Market entry to Germany
International matchmaking eventsInvesting in Germany
.
Legal services for GermanyInformation about German companies
Debt collection in Germany
Legal information about Germany
Commercial agentsEmployees
Starting a business in Germany
Tax services for Germany
German VAT returnsReclaim of German VAT
Quelle: Austellungs- und Messeauschuss der Deutschen Wirtschaft
The AHK Slovenija website should be your first stop when looking for information on trade shows in Germany
www.dihk.si
One of the most important marketing tools are fairs and exhibitions
Our Partners in Germany
Information CenterDo 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: [email protected] http://slowenien.ahk.de
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