Germany

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Having been the economic "Wunderkind" of Europe for much of the second half of the 20th century, the economic news coming out of Germany over the past year or so has not been so encouraging: unemployment figures of more than 10 %, economic growth of less than 1 %.

Against this background it is worth reminding ourselves of some basic facts: Germany (2001 GDP $ 2,128 bn) is still the third-largest economy in the world after the US and Japan. GDP per head is still higher than that of the UK. Standard of living and disposable income are among the highest in Europe. With 82 million inhabitants, Germany is now the most populous country in Europe. Surely a market you can't afford to ignore.

The economic figures are somewhat distorted by the fact that just over 10 years ago, the then extremely prosperous West-Germany merged with East-Germany, an ex-communist, Eastern-block state. This placed an enormous burden on the German economy, but also opened up numerous business opportunities to German and foreign companies. The entire infrastructure had to be virtually rebuilt, existing businesses provided investment opportunities and traditional ties with East-European and Ex-Soviet states could be built upon. Many of these opportunities are still there today.

Considering the upheaval involved, the take up of the Euro has been very popular and successful in Germany.

A major market for importers into Germany are the automotive as well as the general manufacturing industries, located all over the country, from Hanover to Bavaria. In spite of the size of the German chemical industry, chemicals are the second largest category of imports into the country. Financial services and the legal world have recently become more open to the Anglo-Saxon style of business. As many Germans are accustomed to a high standard of living and aspire to a certain lifestyle, high-quality clothing, furniture and furnishings or leisure goods will always be well received.

Many Germans speak good English and are often enthusiastic about this. But beware! The fact that somebody nods in response to what you have said does not necessarily mean that they have actually understood you! The German's own communication style is very direct, they will tell you what they think of your product. Excessive politeness and an indirect way of expressing opinions (maybe to protect someone's feelings), may be seen as insincere and dishonest. English native speakers should avoid phrases such as "I hear what you are saying" or "That is certainly an idea we could discuss" to express negative feedback. Both statements would be understood to be fairly positive by most Germans! Your ability to say at least a few words in German would be much appreciated.

Most business contact is fairly formal. It is less important to form a personal relationship than to come across as competent and professional, presenting an excellent product. Presentations should NOT start with a joke if you don't want to lose your credibility. Instead, be as informative and factual as possible. You just cannot provide too many data and statistics. Research has found that the average German attention span is about 50 % longer than that of a British audience! Always be well prepared and know your stuff. Purchase decisions will be based on price, quality and long-term security. Small-talk and socializing, if they happen at all, usually take place once a deal has been done.

Contracts are considered very important and will be adhered to strictly. They will form the basis of most co-operations.

One of the major factors governing German business and society is TIME. Set up your meeting well in advance, be there right on time or even early, stick to the schedule and don't waste a German's time. You might not be given a second chance.

They are wealthy, they are straight forward, and they are used to doing business with every nation on the planet. So why wait to get to meet them?

Heike Saxer-Taylor is a German national now living in the UK. She holds a degree in English and French from Heidelberg University and a Postgraduate Diploma in Intercultural Management from the University of Cambridge. For the past 15 years, she has worked in the IT and the translation industry in Britain and in Germany, both on the technical as well as the sales and marketing side. She has worked for and with American, British, German and Swiss companies. She now is an Intercultural Trainer and works frequently at Farnham Castle. May 2002