Retail workshop germany sept 2011 final


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  • Always under time pressure. No long meetings, not much small talk Expects from suppliers a deep understanding of the German market in general and his company in particular Does not want to mess around and bargain. The first offer should be striking Will (almost) not visit suppliers Prefers to talk in German for the daily business
  • Hinweise * Enthalten sind Transaktionen über materielle Güter, Dienstleistungen (z.B. Lieferservices), Nutzungsrechte (z.B. Reisen, Eintrittskarten) und Informationen (z.B. kostenpflichtige Downloads). ** Prognose
  • Retail workshop germany sept 2011 final

    1. 1. Germany Alexandra Mulcahy Dagmar Gering Senior Market Advisor Market Advisor Tel: +49 211 4705934 +49 211 4705938 Retail Solution Workshop, 14 th Sept 2011
    2. 2. European Retailers 2009 (€ billion) For more detailed information on German Retailers – See Wallcharts… Overview
    3. 3. Differences in Structure <ul><li>Some Implications: </li></ul><ul><li>No easy access to cheap Financing </li></ul><ul><li>Assets used much longer than depreciated </li></ul><ul><li>No stakeholder pressure e.g. for retrofit’s etc. </li></ul><ul><li>Complex & intransparent decision making – e.g. Edeka Co-Op Structure </li></ul>Source. LH Verm. GmbH, Dr. Thomas F. Huber 1 2 10 4 - International Footprint 2 1 1 4 4 2 - Global footprint 1 2 5 3 - Other Plc’s 2 2 1 5 - Food Retail Plc’s 1 2 4 6 12 20 2 18 No. in Global 250 CEE/CIS Rest of W-EU ES IT FR DE CH UK
    4. 4. <ul><li>German market is all about price. “Geiz ist geil”! </li></ul><ul><li>Food prices lowest in Europe </li></ul><ul><li>Smaller supermarkets, very few hypermarkets </li></ul><ul><li>Limited range discounter model dominates Germany. </li></ul><ul><li>Discounters have 6% market share in UK, and 11% in Ireland. </li></ul><ul><li>Over 40% market share in Germany! </li></ul><ul><li>Aldi and the major brands are seen as the benchmark for new products </li></ul>Discounters and price dominate the German market… Differences in Culture
    5. 5. Differences in Corporate Culture Highly hierarchical, strongly defined rules Risk Averse! Small offices, doors closed Stick to role, adhere the rules The role of Work Teams – Fachbereich Consensus-seeking! Office hours: 8:30 – 17:30
    6. 6. Similarities in E-Commerce Trends <ul><li>Overall market for consumer goods static: -0.2% growth between 1999 & 2009 </li></ul><ul><li>Consumer goods market size €397 billion in 2009 – movements up and down in this range </li></ul>However Market for E-Commerce Growing … B2C E-Commerce Revenues in Germany
    7. 7. Similarities in E-Commerce Trends E-Commerce sales dominated by Top 20 Online Shops – and former Mail-order & catalogue retailers
    8. 8. Inaugural Retail Networking Event, 2010 EI Düsseldorf Create Awareness Brand Ireland Expand Network
    9. 9. How else we can assist… EI Düsseldorf <ul><li>One-to-one work – market research, contact generation, assistance at meetings </li></ul><ul><li>Relationship with EHI - German Retail Institute </li></ul><ul><li>Events – Euroshop (every 2 years), other EHI & networking events </li></ul><ul><li>Identification of Market Experts to work with EI and clients </li></ul><ul><li>Market Research Resources on Retail: </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li> (E-Commerce) </li></ul></ul><ul><ul><li>Metro Handbook </li></ul></ul><ul><ul><li>EHI Retail Handbook </li></ul></ul><ul><ul><li>GfK Research </li></ul></ul><ul><ul><li> (IT Association – Internet, e-commerce) </li></ul></ul>Questions? Comments? Own experiences?…
    10. 10. Appendix
    11. 11. Top 10 online shops generating quarter of revenues E-Commerce
    12. 12. E-Commerce Percentage of consumers that have bought and sold over the internet
    13. 13. Percentage of total company revenues generated online… …Ireland top of list E-Commerce