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Germany |
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Marketing
and Distribution |
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Sales Channels
The German market can be approached through a variety of channels,
some entailing little or no participation by the exporter, while others
require the exporter's direct and active involvement. The most appropriate
channel would depend on the product itself, financial consideration,
and factors such as the size of the market, long-term sales potential,
and the need for promoting installing or servicing the product.
Branch Office
A number of foreign firms, particularly the large multinational corporations,
import (or produce) and sell their products through their own branch
offices and subsidiaries. This is the most effective means of reaching
the market, since the branch office can devote its full attention
and resources to the parent firm’s own products. However, since
the branch office requires a relatively greater capital investment,
it might be the most appropriate only if the supplier anticipates
a large sales volume or has a diversified line of products to sell.
Franchising
This is an effective distribution channel branch office operation,
with no expenses entailed in overhead, payrolls and direct management.
Large oil companies have granted thousands of franchises to operate
service stations. More recently, these franchises have been granted
in the field of service industries, including photo processing and
supplies, dry cleaning and shoe repair.
General Importers
A major portion of Germany’s total imports move through import
houses, importing wholesalers and other general import houses. These
firms generally handle all kinds of consumer and industrial supplies
(except bulk commodities), as well as small types of equipment.
Specialized Importers
Many importers in Germany specialize in a particular product or product
line. These firms have been typically in the trade for a long time
and may know as much about the products they handle. They appear to
be the most active in the bulk commodities trade.
Documentary
Requirements
Commercial invoice – one copy on the exporter’s letterhead,
signed by the shipper should be sent to the consignee. A commercial
invoice should contain the name and address of seller and buyer, place
and date on which the invoice is prepared, and method of shipment.
Certificate of origin – required for goods subject to special
tariff treatments and for non–liberalized goods.
Packing list – although this is not required, it is useful in
expediting and in cleaning goods at the port of entry.
Bill of loading
Sanitary certificates – are required for imports of plants and
plant products and some animals.
Phytosanitary requirements – potatoes shipped to most European
markets must meet a number of phytosanitary requirements.
Health Certificate – an animal health certificate must accompany
imports of fresh or frozen meat.
Mail Shipments
Mail shipments should be addressed to the Federal Republic of Germany
and not just to Germany. The following specific information applies
to parcel post shipments.
Dimensions
Greatest length 42 inches, greatest length and girth combined 79 inches.
Observations
The customs treatment of gift parcels will be facilitated if the customs
declaration is marked by the sender with the worth personal gift package.
Each commercial parcel or package must include an invoice in duplicate.
Prohibitions
Firearms and similar articles, playing cards, articles bearing political
or religions notations on the address side, are prohibited.
Restrictions
German authorities must authorize restrictions on imports of medicines.
Standards, Labelling and Packing
Germany is a signatory to the agreement on technical barriers to trade,
commonly known on the standards agreement, negotiated under the Tokyo
round of multilateral trade negotiation. This is designed to eliminate
the use of standards and certification systems as impediments to trade.
Labelling
There is no general requirement for labels to indicate the country
of origin. However, certain commodities imported into the FRG are
subject to special regulations regarding the manner in which they
must be labelled, showing the manufacturer, composition, the common
product name, contents in metric units, or country of origin.
Marking
There are no special marking requirements. However, according to sound
shipping practice, packages should bear the consignee’s mark,
including port made and they should be numbered to identify the contents
of the package.
Trade Fairs
The important fairs in Germany is Hannover Fair, which has been held
every spring since 1947. In 1996 more than 7200 exhibitors from 65
countries displayed their industrial products on an area of 320,000
sq.mt.
"CeBIT’ is a fair for office, information
and telecommunication technologies, which has been held from 1986.
In 1995 about 6,100 exhibitors from 56 countries displayed their products
and attracted more than 750,000 visitors.
‘Ambiente’
and the Autumn International Trade Fair for consumer goods in Frankfurt
and Main focussed on ceramics, china, glassware, art and crafts, jewellery,
household goods and home accessories.
Cologne too is an important venue for such fairs as ‘Anuga’
(World Food Market), ‘Photokina’ (World Fair for imaging),
the International Furniture Fair and various other specialized fairs
for home appliances, hardware, bicycles and motorcycles.
World Exposition Expo 2000 in Germany
FRTG will hold the ‘World Exposition Expo 2000’ in Hannover
from 1st June to 31st October 2000. It will be the first for such
an event in Germany and the theme, ‘Mankind–Nature–Technology’.
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