If you are going to invest in a company with international expansion plans, you want to make sure that their product or service has good chances of being successful in the countries where you have ambitions.
Germany, the largest economy in Europe, is a powerhouse of industrial production, innovation, and trade. Businesses looking to expand into Germany need to consider various aspects, including market demographics, language requirements, consumer behavior, and potential challenges.
Germany’s robust economy and strategic location make it an attractive market for foreign businesses. Here are some key market statistics:
Language plays a significant role in entering the German market, as cultural and linguistic precision are highly valued.
Germany’s consumers and businesses have distinct buying behaviors shaped by their cultural values of quality, precision, and reliability.
Germany’s market presents both opportunities and challenges for foreign businesses.
With local people in over 30 countries around the world, we can quickly do a regulatory, market and competition assessment in multiple markets at the same time. Connect with Alfred Griffioen to see what we can do and receive a quotation.
Where it comes to assessing the viability of a product or service in a new market, we always look at the following aspects:
Can the product be imported and sold in the country, what are import duties and are there any restrictions on service delivery? What are the investments to comply to all regulations?
Is there a genuine demand for this product or service in the market and which aspects are decisive for the customers? What are common channels for marketing and sales?
How fierce is the competition and is there a clear market leader? Is there room for a new entrant and what happened to other companies trying to penetrate the market?
What steps are needed to enter the market and what are the related costs. How quickly can you expect revenue and what is a reasonable pay-back time?
We make these assessment with local people in over 30 countries around the world, who report in a similar way. This way you get a good comparison and you can total up the investments needed for global growth.
If the company the we are assessing already has sales in different countries, we can determine distributor performance or sales staff performance.
We do this by correcting the actual turnover with data about:
Combining the data of the various countries over time leads to a growth curve where overperformers and underperformers can be easily identified.
We can then do selective interviews what causes any underperformance, and you can take corrective measures.
A curve like this also helps to estimate the potential in a new market.
Please note that there are many countries in the world and the biggest ones or the ones nearby are not automatically the best choice. It all depends of the market growth, the competition and the barriers for entry.
Therefore I would advise you to make a short-list of at least three, but preferably five potential new markets and compare them against the same criteria.
