12/10/2014Presentation title1

Germany Doing business in Europe’s largest market

Key facts Europe’s largest domestic market 27% of Europe’s GDP Population: 82 m Companies: 3,7 m UK's largest export market in Europe second largest globally after the US. Global leader in international trade fairs

UK’s major trading partners

Germany in 2011 – Out of the recession

Comparison

Top-Location

Germany - strengths Economic Strength Political stability InfrastructureHuman Capital

Key industries Munich Automotive ICT Electronics Engineering Aerospace Public-Private Partnerships Financial Services Düsseldorf Food and Drink Fashion Education & Training Creative and Media (incl. Computer Games) Healthcare & Medical Biotech/Pharmaceuticals, Chemicals Berlin Transport (Airports, Railways, Ports, Logistics) Defence and Military Equipment Construction Security (Fire & Police) Environment Oil and Gas Agriculture; Water

Business Culture Germans have a reputation for being thorough, exact and direct – Give us much detail as possible (technical details)  Germans are direct in expressing views and opinions –no hidden language or reading between the lines –clear, direct communication, concise presentation important English is common – but not in all industries Germans are impressed with quality, reliability and reputation They aim for long-term business relationships

Market characteristics  Highly developed market  International and domestic competition  High quality  Fierce competition Companies get many enquiries!

What German companies said during our research:  “Information given on design and operation was not detailed enough and that a drawing would have been beneficial”  “We are flooded with new enquiries and are very busy with active projects. “

Recommendations  Know your Unique Selling Points  Adapt the product to the German market (language, regulatory standards, business culture, pricing)  Offer high quality and innovative products

 Price and margin are key  Focus on products in niche segments  Have detailed plans on how to enter the market  Define supply channel –which type of companies to partner with (agents, resellers)  Visit German trade fairs

 Provide trade literature –With USPs –A lot of technical information –References –In German

Conclusion  Germans love technical details / approvals  When taking on new partner, Germans take it very seriously  Aim for long term relationships  Once a contract is signed, you have a reliable, stable relationship in the 4 th largest market in the world!

How UKTI Germany can help you Flexible, tailor made service –Help you in defining your supply channel Type of companies to partner with –Identify potential German business partners for you –Help you to organise receptions, seminars and product launches

Case Study – Aerogistics  Provider of surface treatments for the aerospace industry  OMIS report to help find a suitable business development representative to work in Germany, on a part-time basis  The report came back with a list of eight high quality candidates.  Aerogistics shortlisted 3 companies, flew to Germany to conduct interviews  UK Trade & Investment helped organise meetings  “It has been a real success. Our representative has already secured a new contract worth £100,000 a year, and is currently negotiating another that will be worth £350,000 a year.” Tom Dawes, Managing Director Aerogistics

Contact Details  Central Coordination Unit Düsseldorf 