Germans are known for many things, from their love of beer and football to their punctuality, rule-abiding nature, and structured, organized approach to life. As consumers, they are also cautious and cost-conscious. While these traits can sometimes be stereotypes, they often reflect the genuine tendencies of German consumers. As a Germany-based brand consulting firm, we are often asked by our international clients, “How can foreign brands resonate with German consumers? What are the best ways to introduce products and organize communication strategies in the German market?”. We recently covered this topic in a training session for Start2 Group for Japanese start-ups that wish to enter the German market. Below, we’re sharing some insights from that session to help companies looking to expand into Europe’s largest economy.
Brand Positioning: Your First Key to Success
Looking at the German retail landscape as a reference, we observe that it is well-established and defined by both major local players and long-standing international brands. As a new entrant in Germany, defining brand positioning and a unique value proposition is essential in this demanding and competitive environment. Leaders need a clear picture of the market segment they are targeting to create communication that resonates locally. This includes crafting messages specifically for German consumers and choosing the most effective media channels – from traditional to social media.
Germany’s social media landscape, for instance, differs significantly from that in Asian markets. In developing markets like Vietnam, Indonesia, and Thailand, Facebook remains a top platform for customer outreach. But in Germany, Facebook’s relevance has dwindled; Germans are more active on platforms like Instagram and – for B2B – LinkedIn.
Additionally, the German’s purchasing behaviour differs depending on the product type. They often prioritize value for money with fast-moving consumer goods (FMCG), frequently choosing private labels and showing little brand loyalty. For durable goods, however, they’re willing to invest in quality, durability, and sustainability, even at a premium.
We recommend analyzing Germany’s most popular brands in your industry to understand where you fit in the landscape. Understanding your competitors and aligning this with your product’s unique selling points will allow you to craft messaging that truly resonates with German consumers.
Japanese Companies: Navigating Cultural Nuances
In our training, we also provided insights for Japanese companies, focusing on the cultural distinctions between Japan and Germany. A major resource here is The Culture Factor report, which draws on scientific studies comparing cultural aspects across countries.
For instance, both Germany and Japan value individualism – people often see themselves as independent and prioritize close family relationships. But their expressions of individualism diverge significantly: Germans are generally comfortable expressing individuality through clothing, speech, and direct criticism. In contrast, Japanese culture tends to be more conservative, favoring harmony and avoiding conflict, often refraining from direct criticism. This, as well as other cultural nuances, is important when tackling your business development conversations.
Media Relations in Germany: PR Essentials
One area where foreign companies often struggle is in PR. The German media landscape includes a mix of daily newspapers, business publications, and trade media, each with its own standards. It’s crucial to understand the core principles of PR in Germany – for instance, there’s a strict separation between editorial reporting and paid media, which isn’t always the case in other markets. To pitch successfully, you need to have a clear goal, understand what the media outlet and journalist is looking for, and explain in detail why your story is relevant to their audience. Crafting press releases that meet high journalistic standards is essential to establishing these relationships.
Closing
We hope these insights give you some local perspectives that help you navigate the German market. Breaking into Germany’s economy can feel challenging, but with skillful brand positioning, cultural understanding, and media strategy, it’s possible to build strong connections and win the trust of German consumers. If you’re ready to take the next step or have questions about how we can support your entry into this dynamic market, feel free to reach out to us. We’re here to help make your transition into Germany as seamless and successful as possible.
