Rohit Bhartiya Saikat Ghosh Sandeep Jain Shriya Beri Kirti Misra Vinny Sethiya
Federal Republic of Germany
Situated in west central Europe
Covers total area of 357.416% is water
Berlin is the largest city and the capital German is the official language
.021 km2 of which
Recent estimate 81.305.856 people
Ethnic groups 81% Germans
7% other Europeans 4% Turks 2% Asian 6% others Urban population: 74% of total population (2010)
32$ Dollar falling against Euro due to news of fallen CPI
Euro unified currency for all of Germany
1 Euro = 1.
Top & cities by buying power
Munich – has maximum buying power and is also a
favourite with expats Berlin Düsseldorf Frankfurt Hamburg Cologne Stuttgart.
Next five tier two investment opportunities
.2 2592.3 1.1 -5.5 2496.Germany GDP Statistics
YEAR 2007 2008 2009 2010 2011 GDP(Billion dollars) 2428.6 Change (%) 3.5 2473.8 2374.2 3.
GDP fell in 2009 because of subprime crisis that
engulfed the world Exports fell to other European nations and China Mittelstand forced to cut productions
how the major economies of euro zone perform Effects of quantitative easing in US and economic conditions in China
.GDP Growth Projections
The GDP is expected to grow at .5% in
2013 All depends on outcome of euro zone crisis.6% in 2012 and 1.
4% Retail sales : 422 billion euro's Share of GDP: 16.42 billion Euros Share of GDP: 57.Economic Performance of the Retail in 2011
Gross domestic product
2570.80 billion Euros Private Consumption 1474.4%
Billion Euros Changes to previous years in percentage
In billion Euros
Market Share Development by farm types 2000-2011
Purchasing and stores
Online Trading Craft
Convenience Hawking Institutional Second-hand shop
Retail space in retail (million square feet)
6 billion) and 2009 (5.000 products in the retail carry the Blue Angel.Major Trends
continuously rising sales development in Germany from 2004 to
between 2006 (EUR 4.
steadily increasing sales of organic products in Germany label worldwide
Since 2005.85 billion euros). increasing sales figures of products with the MSC increasing supply of FSC-labeled wood products in more than
1800 retail outlets of major retailers rising
more than 10. and
unemployment. much higher than
Mandatory benefits to employees( health.Adverse effects of some laws on FDI in retail
Stringent labour laws affected profitability of retailers
like Walmart negatively
Standard of living high in Germany.
. suggesting that:
consumers will demand and purchase more goods
locally fuelling business profits and growth
Such growth indicates the strength of the economy and is bullish for the Euro.Increases in Domestic Demand bode well for the economy.
440 13.743 11. of stores 11.785
.720 6.Top 10 retailers in Germany
Turnover in Germany for 2011 in Million €
Rank 1 2 Retailer Edeka Rewe Turnover 42.519
8 9 10
Lekkerland Obi Otto
4 5 6
Aldi Metro C&C Tengelmann
4.000 39.831 10.000 No.283 437 4.087
Clothing . Discount Store.Home improvement and Optical. Cash&Carry. Hypermarkets . hypermarket/supercenter/superstore Revenue: €59 billion (2010) Area served: Global Products: Discount store. Pharmacy.Area served: Europe Services: Cash & Carry/Warehouse Club. Grocery Stores.000 (2011) Area served: Global Products: Discount store. Supermarket Revenue: US$ 58. Convenience stores. Electronics Specialty.658 billion (2009) Employees: 250.000 Area served: Europe Products: Discount Stores. Convenience/Forecourt Store. Other Specialty. Home Improvement. Supermarket Revenue: €53 billion (2009)
.Cosmetics and more Revenue: €48 billion (2011) Employees: 323. Hypermarket/Supercenter/Superstore.
household hardware.1 billion (2006/2007) Employees: 38. and garden supplies & plants.1 billion (2008) Employees: ~100. Revenue: €7. Discount Stores.Area served: Global Products: FMCG Revenue: €33. Apparel & Accessories and more Revenue: € 24. tools. Home improvement and DIY stores.753
Area served: Global Products: Consumer electronics Area served: Global Products: Home improvement products such as home appliances.5 billion (2005/2006) Employees: 151.000 Area served: Global Products: Multi-channel Retail Employees: ~53.000 (2007)
Products: Grocery Stores.000
. Most of them are international retailers and have their business all over Europe. There has been no major entry of modern retailers from outside Germany. The top 10 retailers in Germany are all based in
Failure of Wal-mart in Germany
Wal-mart's low price strategy yielded no competitive
advantage.. was not successful in Germany. which restricted relationships between employees and led to a public discussion in the media.
. Wal-Mart announced its withdrawal from Germany due to sustained losses. resulting in a bad reputation for Wal-mart among customers.S. particularly Wal-mart's "statement of ethics". Also Wal-mart's corporate culture was not viewed positively among employees and customers in Germany. a price strategy that works well in the U. In July 2006. Also Walmart's "Big Box – Low Price" Model.
Results Manufacturers forced to cut costs and better supply
chain Employment was not swallowed up Large chain was actually a cooperative of smaller stores
.Germany’s evolution in retail
Rapid growth took place two decades ago
Resulted in swift and modern consolidation of stores. small.
weeding out inefficient.