The Consumer goods industry in Germany

The Consumer goods industry in Germany

With an on-going stability of consumer spending, the highest GDP in Europe and a wealthy population, Germany continues to be the largest consumer market in Europe, while current trends indicate for the country to continue to prosper and thrive. Today, individualistic value-for-money notions are becoming increasingly popular among German customers. Discount merchants and well-known brand names are equally appealing to the average German customer across several product categories. While Germans are open to new national as well as international products that support the ESG metrics, particularly the younger generation is keen to change their spending and consumption behavior in order to support the environment and other climate causes.

However, BDG identified the generation of customers aged 50 and over to be significantly appealing as a target demographic due to being the largest consumer group with the most purchasing power. This generation is healthier, more demanding, more quality concerned than their parents were when they were their age.

Review our approach to entering Germany with consumer-oriented products.

Infrastructure for growth: Fast-moving consumer goods in Germany

Throughout the years, Germany has built a stable and innovative infrastructure for consumer goods within the retail landscape, ecommerce and other mediums, allowing for entrants to integrate their products almost seamlessly into this system.

However, only those who really understand market structures and consumer behavior will have a chance of success. Especially, when it comes to sales, several tasks like target definition, potential client database and the process of reaching out to companies are crucial to recognize. The documentation of German decision makers’ input is equally important in determining the next step or how to change a product message or sales technique.

We’ve been able to create some standards and methodologies based on numerous projects over the years that boost the effect of the job and make everyday operations more focused and efficient – for all parties concerned. But, not all of our services can be standardized and are therewith not object of fixed processes. Ecommerce, in particular, disrupted established brands in all consumer goods segments, due to customers being more aware than ever before, and due to the growth of robust e-commerce businesses all around the industry, customers can easily switch shops with the touch of a mouse. This is seen by the large number of people who switch retailers when they are dissatisfied, posing a risk not only for the intend of entry, but also for the long-term potential of the new entrant.

Equally, it may be a great opportunity for unconventional practices. We at BDG always take a holistic and pragmatic look and do not only work with established proof-of-concepts. It may help to use case studies, but it’s never the single most useful resource.

Germany’s central location in mainland Europe provides a number of practical advantages for businesses looking to grow into and supply to the rest of Europe. Setting up a warehouse or logistics center in Germany is advantageous in today’s e-commerce market, when shipment timing is critical for clients. Especially in the Foods and Beverages segment.

In our experience, most merchants are specialists in their field but require assistance with specific local traditions, such as tax and regulatory frameworks, employee visa rules, or even strategies to enter the local market. We at BDG serve as the local contact for international investors, the person who understands the market and market circumstances, speaks the local language, and has the local contacts, such as trade associations, that make the difference and make it easier for a potential investor to enter the market.

Download a few of our project examples for more insights in this sector.