Germany is among the biggest countries in Europe. Known for its export goods around the world, the German market continues to be appealing in various sectors, remaining the largest market in the European Union. The German market has grown so large that the world has come to see Germany as an ideal in the manufacturing sector. Despite the fairly high cost of transacting business in Germany, to investors, a high level of productivity, experienced workforce, good structure, and quality management are things that make doing business in Germany worth the while to them.
Here are a few ways foreign investors see Germany as a hub of business opportunities.
German Market
The seventh-largest country in Europe, Germany offers its residents a comfortable standard of living. With the fifth-largest economy in the world and the number one in Europe, the country is a household name in most cities across the globe. A leading exporter of vehicles, machines, equipment, et cetera. The manufacturing sector is the biggest source of revenue in Germany.
Leading E-commerce market
Germany has one of the largest online markets in Europe. Even going as far as making cross-border trades with other countries in the EU. E-commerce is booming in Germany because of the established delivery system the country has in place, and small business owners take advantage of the provided infrastructures to promote their business to millions of consumers in the online market. There are lots of online shoppers on the internet looking to buy or import new commodities; the convenience that Germany provides allows purchasing on international sites to be appealing to consumers. As of 2014, several German companies have made it to the list of the top 100 E-commerce companies in Europe.
Versatile Businesses
Germany is a center of thousands of businesses of various sizes and types ranging from small online vendors, and small entrepreneurs to large conglomerates. The major reason behind the growth of Germany’s economy in the world can be said to be the existence of small and medium-sized businesses in the country. These types of businesses may seem small and overlooked, but despite their sizes, they remain tenacious with their long-term goal of expanding. Foreign investors usually see most of these businesses as worthy of investment.
Rigid Business structure
In Germany, while employees work, management boards decide the operations of the company. They make the decisions on issues involving the daily activities of the company. There is a hierarchy of doing things in every establishment. Workers are expected not to mix their personal lives with their duties and do the right things at the exact time and place. Irrelevant talks during working hours, which are not important to work, and the growth of the business is frowned upon.
Strict Business etiquette and Policies
Germans avoid mixing personal relationships while doing business. In Germany, qualifications and experience are valued and respected. They operate a formal type of communication with their business partners, making it easy to get straight to business talks. German business owners follow strict protocols to build and maintain business relationships with collaborating investors. Although they can be direct and seem blunt, Germans are friendly and open to serious-minded investors looking to do business with them. They are more concerned with efficiency than relationships.
For investors eager to expand their business to the European market, Germany is the best place to start. With one of the best business environments in the world, and an efficient workforce and business protocols, the country might just be what you need as an investor to grow your business. However, to fit well into the German market, you will require an excellent market entry strategy. This will help you formulate your expansion plans.
