Conquering the German market is a dream for many entrepreneurs, but what is the formula for success? How do you make sure you score optimally online in a market dominated by Google, Amazon and international brands? This article unravels the five best-kept secrets for success in Germany.
1. Think big, but choose a focus
If you think you can reach 81 million Germans, you're wrong. If you include Switzerland and Austria, you even have 100 million German speakers within reach. A mega market for Dutch companies, but also with the risk of choking on it. Unfortunately, conquering a large market does not happen by itself. There are major regional differences. Someone from Berlin does not like to compare themselves with someone from Bavaria or Austria, for example. An example of a good focus for higher-end brands is, for example, the city of Munich, where individual purchasing power is higher than in Berlin, for example. Get the necessary expertise on board and remember that when conquering a foreign market, the costs initially outweigh the benefits. That it pays off in the end is proven by Dutch icons such as Brabantia and the 2019 CrossBorder Award winner Rituals, which have earned their footprints in Germany. And if you can't gain enough market share yourself, you buy a major competitor, as Dutch Takeaway (the Dutch parent company of Thuisbezorgd) has done. Takeaway bought the German operations of Delivery Hero, making them market leaders in Germany.
2. Marketplaces first
Amazon is incredibly popular and big in Germany. As a retailer and marketplace, the company now grabs 50% of the e-commerce market in Germany. On Amazon.de, twice as many consumers start their search for products than on Google. In particular, the 18 million Prime customers who pay an annual subscription to take advantage of free shipping and video on demand no longer look much further. So anyone who wants to conquer the German market cannot ignore Amazon. Google is also noticing that advertising budgets are shifting to Amazon. Google is therefore competing with Amazon by transforming itself into a marketplace under the banner of Google Shopping Actions. In France and the U.S., they have already started this. Germany is likely to follow soon. If this continues, Germans will soon pay directly to Google and less and less directly to your shop. It's up to you to start sorting now and become a master of marketplace marketing. One success factor is an excellent product feed, peppered with German keywords. And if you already have a good feed, you can load it directly into other marketplaces such as Zalando, eBay and Real. Even more reach for your products!
3. Use influencers
Oops, without search volume on your brand in Germany, you're way too expensive. You then have absolutely nothing to gain from the huge reach of Amazon and Google. This is often overlooked by brands taking their first steps across the border. If your brand is not being searched for, you have to become findable on broad general keywords. And that's expensive. An additional disadvantage is that the ads do not convert because you do not have a brand preference, as you are used to in the Netherlands, for example. The German does not yet know your brand and must have a very good reason to pay your premium price. It is therefore essential to make your brand known in Germany as well. A national TV ad can quickly cost tens of millions of euros. Fortunately, research shows that the buying decision can be influenced with influencers. And that's where you can buy the reach cheaper. There are tens of thousands of German influencers who have already invested many hours to build a fan base within your target group. Why shouldn't you take advantage of that? With the right partnerships, you will reap the benefits.
4. You need a heart
There are companies that manage to win over German customers without an elaborate marketing strategy. It really can be done! Mamaloes Babysjop is an example of a Dutch company achieving a flying start across the border through a good story. The company was awarded a CrossBorder Top 30 company for the second time in 2019, and all without major investments in localization across the border. The reason it became successful in Germany were its carefully crafted brand values. Such as its open hiring policy, through which it hires people from disadvantaged backgrounds without an application process. Dexport's new online series The Breakthrough gives a unique glimpse into her special way of doing business. Mamaloes Babysjop's mission fits well with German consumers, who particularly follow brands with a sustainable "purpose. Despite the fact that Germans are increasingly ordering online, 45 percent feel guilty about this compared to traditional stores. The poor image of sustainable returns also plays a role in this. You can reduce some of the collective guilt by propagating a mission in which your company makes the world a little better. What is your added value in this world?
5. SEO, the underdog
The Netherlands has produced many good SEO specialists. Unfortunately, these are of limited use. The specialists can make the website SEO-ready, but as soon as the German language is involved, it becomes difficult. Incorporating German keywords into conversational texts and working with bloggers to get the necessary relevant backlinks is often a bridge too far. If you then open Analytics and zoom in on the channels that generate traffic, you quickly notice the limited organic traffic. Many Dutch companies do not get further than 10% SEO traffic in Germany and are therefore completely dependent on visits through paid channels. The result is an overly expensive marketing mix. Successful companies, on the other hand, quickly achieve 30-40% organic traffic. This is how it can be done.
Success in Germany is determined by a good focus, a clear added value and a rock-solid marketing story. Entrepreneurs who have already made the move to Germany themselves can explain this best. Dexport's new online series "The Breakthrough" follows three successful CrossBorder Top 30 companies and talks about the dream they are realizing: crossborder business.
Are you ready to take the next step? We help you sell on marketplaces, generate sales with your webshop and brand building in Germany? Get in touch with us!
