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Franchise News - Article
06.12.2008
The German franchising: realities and perspectives
The deutsche Franchise Verband (the equivalent of the FFF)
has today 250 members and has existed for 30 years.
Franchising market in
Germany has 910 networks, 55,700 franchisees that have made a
turnover of 41 billion of Euros in 2007.
This positive situation could
give to French franchisors the wish to develop their franchises across the
Rhine.
Moreover some French brands moved there a long time ago like Yves
Rocher, Kookaî, Promod, Pimkie and developed a good reputation.
Sectors of
franchising activity in Germany are split as forward:
49%
for services, 28% for business, 15% for
catering and hotel business, 9% for the craft industry. More
often, it’s about little companies (1.9 employees per site, less than in
France).
Germany also knows the crisis since the hard and costly
reunification but Germany is the 3rd most powerful country, its growth came up
to 2.5% in 2007 and it has an extra export trade.
Besides with 82 million inhabitants, Germany represents an
important potential of development even if households’ consumption dropped down
for the same reasons than other European countries:
The explosion of prices
linked to the growth of the barrel price, staples price, plus a setting up of a
VAT at 3% in January 2007 by the German government.
German citizen is still purchasing a lot of products but the vigilance is
obligatory face to a lambda customer from the other side of the Rhine: He has
been informed, he is really focus on prices (first big discounters like Aldi and
Lidl has been there for ages and created a discount’s clientele).
However,
face to the attraction for French products – which still have a high popularity
– He can crack and spend more if mall offer an original product or service.
Imagination is necessary especially because German have a tendency for ecology
which is also not new: first recycling sorting rubbish bins were created in the
70s.
Franchising sector never stopped to grow despite a general decrease of
consumption in Germany.
There are still opportunities for structured
networks which know how to export their know-how and to fit to
the mentality and habit of a country.
Pascale and Ulrich from Franchiseportal.de
Partners of AC Franchise in
franchisekey.com international network of franchises.
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