Group 5:

Rohit Bhartiya Saikat Ghosh Sandeep Jain Shriya Beri Kirti Misra Vinny Sethiya

About Germany
Federal Republic of Germany
Situated in west central Europe

 Covers total area of 357,021 km2 of which

2.416% is water
Berlin is the largest city and the capital German is the official language

Population
Recent estimate 81,305,856 people
Ethnic groups 81% Germans

7% other Europeans 4% Turks 2% Asian 6% others Urban population: 74% of total population (2010)

Currency
Euro unified currency for all of Germany
1 Euro = 1.32$ Dollar falling against Euro due to news of fallen CPI

Top & cities by buying power

Munich has maximum buying power and is also a

favourite with expats Berlin Dsseldorf Frankfurt Hamburg Cologne Stuttgart.

Next five tier two investment opportunities

Nuremberg
Karlsruhe Dresden

Regensburg
Potsdam

Germany GDP Statistics

YEAR 2007 2008 2009 2010 2011 GDP(Billion dollars) 2428.5 2473.8 2374.5 2496.2 2592.6 Change (%) 3.3 1.1 -5.1 4.2 3.0

Analysis
GDP fell in 2009 because of subprime crisis that

engulfed the world Exports fell to other European nations and China Mittelstand forced to cut productions

GDP Growth Projections

The GDP is expected to grow at .6% in 2012 and 1.5% in

2013 All depends on outcome of euro zone crisis, how the major economies of euro zone perform Effects of quantitative easing in US and economic conditions in China

Economic Performance of the Retail in 2011

Gross domestic product

2570.80 billion Euros Private Consumption 1474.42 billion Euros Share of GDP: 57.4% Retail sales : 422 billion euro's Share of GDP: 16.4%

Retail sales

Billion Euros Changes to previous years in percentage

B2C-E-Commerce

In billion Euros

Market Share Development by farm types 2000-2011

Traders
Chain stores

Purchasing and stores

consignor Hypermarket

Discounters
Supermarket

Online Trading Craft

Convenience Hawking Institutional Second-hand shop

Retail space in retail (million square feet)

Major Trends
continuously rising sales development in Germany from 2004 to

2008

between 2006 (EUR 4.6 billion) and 2009 (5.85 billion euros),

steadily increasing sales of organic products in Germany label worldwide

Since 2005, increasing sales figures of products with the MSC increasing supply of FSC-labeled wood products in more than

1800 retail outlets of major retailers rising

more than 10,000 products in the retail carry the Blue Angel, and

Adverse effects of some laws on FDI in retail

Stringent labour laws affected profitability of retailers

like Walmart negatively

Standard of living high in Germany, much higher than

even US
Mandatory benefits to employees( health,

unemployment, retirement benefits)

Increases in Domestic Demand bode well for the economy, suggesting that:
consumers will demand and purchase more goods

locally fuelling business profits and growth

Such growth indicates the strength of the economy and is bullish for the Euro.

Top 10 retailers in Germany

Turnover in Germany for 2011 in Million
Rank 1 2 Retailer Edeka Rewe Turnover 42,000 39,000 No. of stores 11,831 10,893

3
4 5 6

Lidl
Aldi Metro C&C Tengelmann

31,500
24,440 13,743 11,340

3,584
4,283 437 4,519

7
8 9 10

Mediamarkt Saturn
Lekkerland Obi Otto

9,087
6,720 6,200 5,785

381

348 -

Area served: Europe Services: Cash & Carry/Warehouse Club, Convenience/Forecourt Store, Discount Store, Electronics Specialty, Home Improvement, Hypermarket/Supercenter/Superstore, Other Specialty, Supermarket Revenue: US$ 58.658 billion (2009) Employees: 250,000 Area served: Europe Products: Discount Stores, Grocery Stores, Convenience stores, Cash&Carry, Hypermarkets ,Home improvement and Optical, Pharmacy, Clothing ,Cosmetics and more Revenue: 48 billion (2011) Employees: 323,000 (2011) Area served: Global Products: Discount store, hypermarket/supercenter/superstore Revenue: 59 billion (2010) Area served: Global Products: Discount store, Supermarket Revenue: 53 billion (2009)

Area served: Global Products: FMCG Revenue: 33.1 billion (2008) Employees: ~100.000 (2007)

Products: Grocery Stores, Discount Stores, Home improvement and DIY stores, Apparel & Accessories and more Revenue: 24.5 billion (2005/2006)[1] Employees: 151,753
Area served: Global Products: Consumer electronics Area served: Global Products: Home improvement products such as home appliances, tools, household hardware, and garden supplies & plants. Revenue: 7.1 billion (2006/2007) Employees: 38,000 Area served: Global Products: Multi-channel Retail Employees: ~53,000

 The top 10 retailers in Germany are all based in

Germany. Most of them are international retailers and have their business all over Europe. There has been no major entry of modern retailers from outside Germany.

Failure of Wal-mart in Germany

Wal-mart's low price strategy yielded no competitive

advantage. Also Wal-mart's corporate culture was not viewed positively among employees and customers in Germany, particularly Wal-mart's "statement of ethics", which restricted relationships between employees and led to a public discussion in the media, resulting in a bad reputation for Wal-mart among customers. Also Walmart's "Big Box Low Price" Model, a price strategy that works well in the U.S., was not successful in Germany. In July 2006, Wal-Mart announced its withdrawal from Germany due to sustained losses.

Germanys evolution in retail

Rapid growth took place two decades ago
Resulted in swift and modern consolidation of stores,

weeding out inefficient, small, less-adaptive stores

Results Manufacturers forced to cut costs and better supply

chain Employment was not swallowed up Large chain was actually a cooperative of smaller stores