WHEN SETTING UP BUSINESS in Germany, there are many things to consider. To begin with, Germany is not a homogenous market but consists of several regions with independent markets.
- We get in touch with many small and medium sized Swedish companies. They believe they can address the entire German market at the same time. You have to remember that Germany is one of the largest economies in the world with 82 million inhabitants and competition is tough, says Ninni Lövgren.
Her advice to foreign companies with limited financial muscles is to start in one region, get to know the market, political systems and then gradually expand into other regions.
IN CONTRAST TO SWEDEN, Germans have stronger ties and are more regionally than nationally rooted. People from Bavaria feel more Bavarian than German, says Ninni Lövgren. In total, Germany has 17 states with Home Rules and different legal frameworks.
- In some states, for example, you go to school for 12 years, while in others you go for 13 years, says Ninni Lövgren.
GERMAN REGIONS’ independence and character have strengthened over the years and regional purchase patterns have developed. When marketing your product or service, you have to adapt to the region.
Where in Germany should a Swedish company set up business?
- It is hard to say that if you are in this line of business you should invest in this particular region etc. However, in general, northern Germany is more characterised by agriculture while in southern Germany there is more industry. There are several centres in Germany. In Berlin, there is the political centre, in Frankfurt, the commercial and industrial life. In Munich and Hamburg, media and in Düsseldorf there are many industries.
SINCE THE GERMAN LEGAL framework is more complex than the Swedish one, Eva Häussling at the German-Swedish Chamber of Commerce has an advice for Swedish companies: Hire a lawyer when setting up business in Germany.
- The entire system is much more regulated and formal, says Eva Häussling.
When setting up business in Germany you have to register your company with one of the 80 chambers of commerce.
- The chambers of commerce act as spokesmen for industry and commerce and can assist you when setting up abroad.
Emelie Ring