INDUSTRY ANALYSIS RETAIL INDUSRY IN GERMANY

Presented by || Anand Raj (1020805) Moumita Sinha Roy (1020837) Donald Brain Mendonca (1020809) Ranbirrajsinh Rathod (1020822) Tanya Abraham ( 1020845)

MARKET OVERVIEW

Third largest industry sector after manufacturing and skilled trades and crafts sector. Number of Companies: 410,000. Employees: 2.7 million. Annual Turnover: 380 billion . Potential Customers: 82 million. Annual Growth Rate: 2.4%.
GERMAN RETAIL INDUSTRY

Source: www.fxstreet.com 2

CONSUMER BASE

Number of Potential Customers: 82 million.

Needs

Consumers want almost perfect information access about products and pricing. If consumers cant find what they want, they will move on to the next retail outlet.
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Buying Behavior

German consumer is selective Tough time for B- Brands and C-Brands.

GERMAN RETAIL INDUSTRY

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CURRENT MARKET CONDITION

Manufacturers are taking control of distribution channels. (Forward Integration). The concentration process in the German retail industry has led to standardization and more sales space. Standardization leads to economies of scale, making retail more efficient. In Germany, smaller and mediumsized retailers are coming under pressure.
Source: www.consumer-products-germany.com

GERMAN RETAIL INDUSTRY

COMPETITION Global Players in Germany

Carrefour (France) Hennes & Mauritz (Sweden) Tesco plc (UK)

Source: Wikipedia
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The global ranking number assigned to the company, based on its sales figures, compared to other top retail organizations worldwide.
Metro AG Cash & Carry Warehouse Club 5 Schwarz Unternehmens Discount Store 9 Aldi GmbH & Company oHG Discount Store 11 Rewe-Zentral AG Supermarket 19 Edeka Zentrale AG & Company KG Supermarket 58 Tengelmann Warenhandelgesellschaft KG Home Improvement 70 Otto (GmbH & Co KG) Mail Order 71 Arcandor AG Department Stores/Teleshopping 89 Fa. Anton Schlecker Drug Store/ Pharmacy 99 C&A Europe Apparel/Footwear 3 132 Globus Holding GmbH & Company KG Hypermarket/Supermarket 135 Dm-drogerle markt GmbH + Company KG Drug Store/Pharmacy 147 Praktiker Bau- and Helmwerkermarkte Home Improvement 150 Dirk Rossmann GmbH Drug Store/Pharmacy 158 Celeslo AG Drug Store/Pharmacy 163 Norma Lebensmittelfillialbetrieb, GmbH Discount Store 170 Douglas Holding AG Specialty 180 Delchmann Group Apparel/Footwear Specialty 188 Bauhaus GmbH # Company KG Home Improvement 206 HORNBACK+Baumarkt-AG Group Home Improvement
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GERMAN RETAIL INDUSTRY

Provision and potential for retail-surface per 1,000 inhabitant per county

GERMAN RETAIL INDUSTRY

Shift in Retail Market Share

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ENTRY BARRIERS

Retail trade is subject to substantial regulation in European countries. Local governments decide store opening hours (opening hours per day and opening time interval), whether shops can be opened all week and at night, the maximum number of sales days and so on.

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KEY SUCCESS FACTORS

Focus on margins when gross profit. Focus on payroll cost when productivity of staff will achieve the same cost ratio plus increased sales. Focus on a broad assortment when productivity of space is more important. Focus on margins to achieve ROI when turnover is more important.

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RECOMMENDATIONS

1. 2.

Broad, undifferentiated assortments hardly stand a chance. Future sales staff competence should be in events.

3. Bringing consumers together. 4. Enabling consumers. 5. A challenging time for mass producers.

Source: www.consumer-products-germany.com

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THANK YOU

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