GermanyAlexandra Mulcahy Dagmar GeringSenior Market Advisor Market AdvisorTel: +49 211 4705934 +49 211 4705938

Retail Solution Workshop, 14th Sept 2011

European Retailers 2009 (€ billion)

For more detailed information on GermanRetailers – See Wallcharts…

Overview

UK CH DE FR IT ES Rest of W-EU

CEE/CIS

No. in Global 250 18 2 20 12 6 4 2 1

- Food Retail Plc’s 5 1 2 2

- Other Plc’s 3 5 2 1

- Global footprint 2 4 4 1 1 2

- International Footprint

4 10 2 1

Differences in Structure

Some Implications:• No easy access to cheap Financing• Assets used much longer than depreciated• No stakeholder pressure e.g. for retrofit’s etc. • Complex & intransparent decision making – e.g. Edeka Co-Op Structure

Source. LH Verm. GmbH, Dr. Thomas F. Huber

German market is all about price. “Geiz ist geil”!

Food prices lowest in Europe

Smaller supermarkets, very few hypermarkets

Limited range discounter model dominates Germany.

Discounters have 6% market share in UK, and 11% in Ireland.Over 40% market share in Germany!

Aldi and the major brands are seen as the benchmark for new products

Discounters and price dominate the German market…

Differences in Culture

Differences in Corporate Culture

Highly hierarchical, strongly defined rulesHighly hierarchical, strongly defined rules

Risk Averse!Risk Averse!

Small offices, doors closedSmall offices, doors closed

Stick to role, adhere the rulesStick to role, adhere the rules

The role of Work Teams – FachbereichThe role of Work Teams – Fachbereich

Consensus-seeking!Consensus-seeking!Office hours:

8:30 – 17:30

Similarities in E-Commerce Trends

• Overall market for consumer goods static: -0.2% growth between 1999 & 2009• Consumer goods market size €397 billion in 2009 – movements up and down in this range

HoweverMarket for E-Commerce Growing …

B2C E-Commerce Revenues in Germany

Similarities in E-Commerce Trends

E-Commerce sales dominated by Top 20 Online Shops – and former Mail-order & catalogue retailers

Inaugural Retail Networking Event, 2010Inaugural Retail Networking Event, 2010

Create Awareness

Brand IrelandExpand Network

EI Düsseldorf

How else we can assist…

EI Düsseldorf

• One-to-one work – market research, contact generation, assistance at meetings• Relationship with EHI - German Retail Institute• Events – Euroshop (every 2 years), other EHI & networking events• Identification of Market Experts to work with EI and clients• Market Research Resources on Retail:

www.handelsdaten.de www.ecc-handel.de (E-Commerce)Metro HandbookEHI Retail HandbookGfK Researchwww.bitkom.de (IT Association – Internet, e-commerce)

Questions? Comments? Own experiences?…

Appendix

Top 10 online shops generating quarter of revenues

E-Commerce

E-Commerce

Percentage of consumers that have bought and sold over the internet

Percentage of total

company revenues generated online…

…Ireland top of list

E-Commerce