Germans domestic trade is driven by consumers who tend to be value-conscious and quality-oriented. They have high expectations when it comes to product quality and customer service, which has led to a reputation for high-quality German products both domestically and internationally. This has also directed the German Government to implement various regulations and standards to protect consumers and build consumer trust.
The German economy is the fourth largest in the world and accounted for one quarter (24.7 percent) of the European Union’s GDP in 2021. Germany is also the United States’ largest European trading partner and the sixth-largest market for U.S. exports.
With a population of 83.2 million and an employment rate of 77.5%, it has the largest consumer market in the European Union.
An enormous volume of trade in Germany is conducted at some of the world’s largest trade events, such as Medica, Hannover Fair, Automechanika, and the ITB Tourism Show.
Automechanika is the world’s biggest trade fair for the automobile aftermarket. It is held every two years (in even years) at the Messe Frankfurt and is open only to trading visitors. As an international meeting place for the industry, dealership trade, and maintenance and repair segment, Automechanika Frankfurt provides a major platform for business and technological knowledge transfer. With participants from 175 countries, it is the most international meeting place for industry, workshops, and trade covering the entire value chain of the automotive aftermarket.
The retail sector in Germany is diverse, ranging from small family-owned businesses to large international retail chains. In 2023, the German retail sector recorded around 650.3 billion euros in sales revenue. Major German cities have vibrant shopping districts with a wide variety of stores, including department stores, boutiques, supermarkets, and specialty shops.
Germany is renowned for its manufacturing industry, which produces a wide array of products, including automobiles, machinery, chemicals, and electronics. The domestic trade of manufactured goods is significant, both for consumer goods and intermediate products used in other industries.
Germany has a strong tradition of SMEs, known as "Mittelstand." These smaller businesses play a crucial role in domestic trade, often specializing in niche markets and providing employment opportunities throughout the country.
Various trade associations and chambers of commerce exist in Germany to represent the interests of businesses in different sectors. These organizations facilitate networking, provide information, and advocate for favorable business conditions.
The overview of Germans domestic trade would not be complete without a look at the recently held Oktoberfest.
Oktoberfest is the world's largest Volksfest, featuring a beer festival and a travelling carnival. It is held annually in Munich, Bavaria, from mid- or late-September to the first Sunday in October. The event attracts more than six million international and national visitors.
The festival is an important part of Bavarian culture and has been held since 1810. Other cities across the world also hold Oktoberfest celebrations that are modeled after the original Munich event.
During the event, large quantities of Oktoberfest Beer are consumed. In 2014, for example, 7.7 million litres (2,000,000 US gal) were served. Visitors also enjoy numerous attractions, such as amusement rides, sidestalls, and games. There is also a wide variety of traditional foods available.
The festival originally took place in the 16-day period leading up to the first Sunday in October. However, this schedule was modified in 1994 in response to German reunification. As a result, if the first Sunday in October falls on the 1st or the 2nd, then the festival runs until 3 October (German Unity Day). Thus, the festival now runs for 17 days when the first Sunday is 2 October and 18 days when it is 1 October.
The next Oktoberfest will be held at Munich's Theresienwiese from September 21 to October 6, 2024.
To wrap up - Germany's domestic trade is highly regulated and has stringent regulations and quality standards in place to ensure the safety and quality of products sold in its domestic market. With these standards applying to various industries and helping build consumer trust, and build the local economy and protect the local manufacturing, an example of this is how Germany is now considering options to protect its domestic solar manufacturers from price dumping.
If you are importing quality products into Germany remember Inspexion is the go-to marketplace to implement regulations, protect consumers and uphold standards.