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It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
Our local consultant will help you find the right distributors or retailers and convince them to work with you.
Germany is one of the largest markets of Europe, but also a conservative one and difficult to penetrate from abroad.
Edeka: Edeka is the largest supermarket retail chain in Germany with a turnover of €62.7 billion in 2021. The chain operates several banners, including Edeka, Marktkauf, Netto, NP Niedrig-Preis, Diska, and SPAR Express, and has a vast network of around 11,126 stores.
Lidl & Kaufland: These two brands, both part of the Schwarz Group, collectively achieved a turnover of €48.4 billion in 2021. They operate a combined total of 3,992 stores in Germany, with Lidl having 3,242 outlets and Kaufland boasting 750 stores.
REWE: REWE reported an estimated turnover of €33.94 billion in 2021. The group operates several banners, including nahkauf, Penny, REWE, and others, with a network of 6,725 stores in Germany.
Aldi: Including both Aldi Nord and Aldi Süd, Aldi reported a turnover of €30.25 billion in 2021. Across Germany, it operates 4,186 stores. Aldi has a long history, dating back to its foundation in 1913.
Lekkerland: This wholesale and retail company, part of the REWE Group, reported a turnover of €8.2 billion in 2020.
Germany has many trade shows which are an excellent way to showcase your products and to orient yourself on the market. However, due to the sheer size of these shows chances are small that a purchasing manager of a major chain will accidentally visit your booth. A dedicated distributor search, preferably in another moment of the year, may yield more results for substantially less than the costs of a booth.
If you decide to have your booth at a German trade show, be well prepared and have your message tailored to the European and especially German visitors. It might be a good idea to contact relevant distribution channels in advance and invite them to your booth.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:
Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.
