Download iXPOS - Wholesale and Retail Trade

Wholesale
and Retail
Trade
Distributing
through the Right
Channels
Industry Overview
Our Industry in
Numbers (2013)
Market Potential
Market Access
Finding Providers
Supporting
Institutions
Industry Overview
The German retail and
wholesale industries
link manufacturers to
customers. In total, it
accounts for
approximately 530,000
(163,000 in wholesale;
367,000 in retail)
companies that employ
about 4.9 million (1.9
m in wholesale; 3 m in
retail)people. The
sector realizes an
annual turnover of
approximately 1.5
trillion euro (1.1 trillion
in wholesale; 498
billion in retail).
Inasmuch as Germany
is one of the top
exporting nations, it s
economic success also
depends on imports to
a large degree. For
this purpose,
wholesalers,
international trading
companies and
commercial
agents support
foreign importers
with their broad
knowledge of
the German and
European
markets.
German retailers
know the
preferences of
local consumers
very well and
help to supply
Europe’s largest
consumer
market of 80
million potential
customers with
the products it
requires. Their
modern retail
structures and
innovative sales
services support
suppliers in
meeting the
consumers’
demand.
Our Industry
in Numbers
(2013)
530,000
companies
employ
about
4.9
million
people
or more
than 15
percent
of all
employees
in
Germany.
With
approx.
1.1
trillion in
turnover,
wholesale
is
Germany’s
second
largest
industry
behind
manufacturing.
Retail
turnover
developed
solidly
over the
last
years
and is
close to
reaching
EUR
500
billion
(2012).
Private
spending
remained
strong
at EUR
1,572
billion in
2013.
Market
Potential
RETAIL - The
German retail
industry employs
2.9 million
individuals who
work for 410,000
companies
making it the
third largest
industrial sector
after the
manufacturing
industry and the
skilled trades
and crafts
sector. Its
annual turnover
of more than
400,000 billion
Euros is mainly
earned by small
and medium
sized
enterprises. As a
result of stable
consumer
spending, retail
revenues
remained
relatively
constant during
the world
financial crisis.
In 2010, retail
sales showed a
strong
development
and increased
by 1.8 percent.
This trend is
bound to
continue as
consumer
sentiment in
2011 is expected
to remain strong.
GfK
GeoMarketing
forecasts a twopercent increase
in Germany's
retail turnover
for 2011.
WHOLESALE
AND
COMMISSION
TRADE - The
German
wholesale sector
accounts for
120,000
companies with
1.4 million
employees.
Furthermore,
there are
approximately
70,000
specialized
commercial
agencies active
in the German
market.
Traditionally, the
wholesale
industry
provides the
indispensible
link between
production and
retailing. Today,
wholesale
businesses have
evolved into
modern
marketing and
distribution
enterprises that
offer broad
supply chain
management
and other
business-tobusiness
services. In
2010, the
turnover of
German
wholesale
companies
increased by 13
percent in
nominal terms to
a total value of
420 billion
Euros, according
to preliminary
figures.
However, due to
the world
financial crisis
and its effect on
international
trade, revenues
are expected to
have decreased
in 2009.
DISTANCE
SELLING - In
2010, turnover
of distance
selling
businesses
accounted
for 32.4 billion
Euros, which led
to an annual
growth of 7
percent.
Especially Ecommerce is
constantly
expanding its
market share. In
2010, online
purchases
amounted to
23.7 billion
Euros. Over the
last five years,
E-commerce
experienced
growth rates of
more than 10
percent in
average. Sixty
six percent of all
distance
purchases were
performed
online, while 44
percent were
ordered via
traditional
distance sales
channels like
mail order and
teleshopping.
Emerging trends
are mobile
commerce and
social media.
Market
Access
There are no
general
provisions for
border-crossing
distribution
services except
for those
product-related
rules and
regulations that
affect the
movement and
sales of goods
sensitive to
health or public
safety. Further
details on safety
and import
requirements
are available in
our section
"Market Entry".
ESTABLISHMENTS
- Retailing
usually will
require proximity
to the market
and, thus, the
establishment of
local
subsidiaries.
Enterprises who
intend to set up
a German
business branch
are offered
comprehensive
support by
Germany
Trade & Invest,
the German
investment
promotion
agency.
POINT OF
SINGLE
CONTACT
- Service
providers from
EU Member
States may
address their
local Points of
Single Contact
for support with
the
administrative
procedures that
need to be
observed in
Germany. More
information is
available in our
section ''EU
Service Market.''
Finding
Providers
Businesses who
intend to enter
the European
market can take
advantage of
German
distributors'
extensive
knowledge on
the preferences
of local
consumers.
Especially
foreign small
and medium
enterprises
(SME) otherwise
may find it
difficult to place
their products.
German
wholesalers and
import trading
companies help
to overcome
lack of
information on
the market,
mitigate financial
risks and
navigate through
legal
requirements.
The National
Association of
German
Commercial
Agencies and
Distribution
(CDH Centralvereinigung
Deutscher
Wirtschaftsverbände
für
Handelsvermittlung
und Vertrieb
e.V.) represents
more than
60,000
independent
commercial
agencies
(manufacturers'
representatives),
and brokers
facilitating the
sale of goods.
The CDH
provides an
online plattform
that supports
manufacturers in
finding agents
by placing a
classified
advertisement
on their website.
Agents who are
members of the
CDH will be
notified per email and can
contact
manufacturers
directly.
If you are
looking for
distributors
specialized in a
specific product
or industrial
sector, you may
also browse the
section
''distribution
channels'' of our
pages on the
specific
industrial sector.
Entrepreneurs
who are looking
for a specific
business contact
may publish
their enquiry free
of charge on the
iXPOS Export
Community, the
B2B
marketplace in
Germany. It is
powered by
Germany Trade
and Invest, the
network of
German
Chambers of
Commerce and
Industry in
Germany and
abroad as well
as many other
players.
Supporting
Institutions
The local
Chambers of
Industry and
Commerce (IHK
- Industrie- und
Handelskammern)
are the
mandatory
professional
organizations for
retail and
wholesales
businesses.
Besides
representing
their members'
interests and
offering
individual
support, they
supervise the
qualifications of
entrepreneurs
and operators.
More information
on mandatory
professional
organizations in
Germany is
available in our
section on
business
registration.
The German
Retail
Federation
(HDE Hauptverband
des Deutschen
Einzelhandels)
is the umbrella
organization of
the German
retail sector,
which consists
of about 410,000
independent
companies. It
represents the
needs and
interests of the
whole retail
sector. HDE
supports
individual
companies in all
professional
subject matters
and is in turn
supported by
regional and
sectoral member
organizations.
The Federation
of German
Wholesale and
Foreign Trade
(BGA Bundesverband
Großhandel,
Einzelhandel,
Dienstleistungen
e.V.) is the
leading
organization for
the wholesale,
foreign trade
and business
services sector
in the Federal
Republic of
Germany.
The German ECommerce and
Distance
Selling Trade
Association
(BVH Bundesverband
des Deutschen
Versandhandels)
represents the
legal and
economic
interests of its
members,
provides
information and
advisory
services, and
promotes the
constructive
dialogue
amongst its
members.
Currently it has
around 300
members - large
and small
distance selling
companies
which utilize the
sales channels
catalogue,
internet, direct
sales and TV.
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