Germany's consumer market is worth €1.5 trillion. That's a lot of opportunity. But German consumers are a demanding lot: giving special priority to quality, but never losing sight of value. The good news for Irish businesses is that Germans have very positive attitudes towards Irish goods and services. Given that Germany will be Europe's strongest growing consumer market for the foreseeable future, then now is a good time to respond to Die €1.5 Billionen Gelegenheit!

1. Selling to the German Consumer
An Amárach Research Briefing
June 2011
© Amárach Research

2. 2
Background
 Amárach Research believe there is huge potential for Irish
companies, both small and large, to achieve a presence within
the lucrative German market.
 Amárach’s Access Europe service aims to help Irish companies
gain a greater understanding of the German market.
 Amárach Research have undertaken a survey of German
consumers to identify key insights and opportunities for Irish
businesses within the German Market.

3. 3
Research Methodology
 A questionnaire was designed by Amárach Research
 Fieldwork was conducted focusing purely on the German market
 Online methodological approach
 The total sample was 1,001
 Quotas were set to achieve a nationally representative sample of
the German population
 Interviewing was conducted between 28th April and 20th May 2011

4. 4
C. Sample Profile – I
Gender Age Social Class Region
% % % %
16-24 13 North 16
(e.g.
Niedersachsen,
14 Hamburg etc.)
25-34
Male 50
ABC1 58
South 38
35-44 19 (e.g. Bayern,
Baden
Württemberg)
45-54 20
East 18
(e.g. Berlin,
Sachsen)
Female 50
C2DE 42
55+ 34 West
(e.g. 28
Nordrhein-
Westfalen,
Hessen)
Quotas were set on age, gender, social class and
region to achieve a nationally representative sample.

5. 5
C. Sample Profile – II
Marital Status Household Income Children
% % %
Up to €20k 26
Married/ Yes 59 An
co-habiting 63 average of
2 children
€20k - €40k 28
€40- €60k 15
€60- €80k 9
Single 25
€80- €100k 2 No 41
€100k+ 2
Widowed/ Refused
divorced/ 18
12
separated
Majority are married/cohabiting and have children.

6. 6
Contents
MAIN FINDINGS:
Section 1: Household Spending and Consumer Confidence
Section 2: Purchasing Behaviour
Section 3: Online Shopping
Section 4: Attitudes Towards Ireland

7. SECTION 1:
Household Spending and
Consumer Confidence

8. 8
Household Responsibility
(Base: All adults 16+ – 1,001)
Responsibility for Responsibility for Main
Bills and Budgeting Food/Grocery Shop
% Higher for Male: 75% %
Single: 75%
Higher for females:
Widowed/divorced: 96%
80%
Higher for
Higher for Married/
Married/
Mainly
responsible co-habiting: Mainly
co-habiting: 69% 45%
66% responsible
37%
Jointly Jointly 34%
28% Lower for responsible
responsible Married/
co-habiting:
3% 61%
No responsibility
7 in 10 (69%) are mainly responsibly for household bills and
budgeting while 2 in 3 (66%) are responsible for main food shop.
NB: It was a recruitment criteria for respondents to be at
least in part responsible for the household shopping

9. 9
Household Spending Vs Last Year
(Base: All adults 16+ – 1,001)
Household Expenditure Food and Grocery Bill
% %
Increased a lot (+5%) Increased a lot (+5%)
Increased a little (<5%) Increased a little (<5%)
Stayed the same Stayed the same
Decreased a little (<5%) Decreased a little (<5%)
Decreased a lot (-5%) Decreased a lot (-5%)
Don’t know Don’t know
2 in 3 (66%) have increased household expenditure compared to last year while 7 in 10
(69%) show increase in grocery spend.
Consumers were more likely to have experienced a sharp increase in household
expenditure if they have children or are between 45 and 54 years old.

10. 10
Reasons for Change in Behaviour Vs Last Year
(Base: All adults 16+ – 1,001)
Why Why
Increased? Decreased?
(Base: Those who increased spending - 744) (Base: Those who showed decrease - 84)
% %
Everything is getting more
expensive 45 Change in circumstance 15
Increased food prices Everything is getting
16 more expensive 13
Higher utility costs/energy
costs 14 Less disposable income 11
Change in circumstances 8 Shopping around 11
Higher petrol prices 7 Increased savings 8
Buy better quality products 6 Buy less 8
Shop differently 8
Majority spending more, mainly because of inflation. Those spending less
are doing so because of a change in circumstances (loosing job etc.).
(All others 5% or less)

11. 11
Outlook and Attitudes – Consumer Confidence
(Base: All adults 16+, 1,001)
Totally Totally
Disagree Agree
(1) (2) (4) (5) Neither
4/5%
/nor (3)
I am confident that my income is secure 11 14 29 15 31 44%
Germany’s economy will continue to be stable 7 12 34 8 39 42%
I am less worried about losing my job than 16 15 15 14 40 29%
I was before
I am more relaxed about spending money 32 20%
than I was a few months ago 24 24 16 4
Less than half of German consumers are confident about the security of their
income & the German economy.
Nearly a third (29%) are less worried about losing their job against a similar
proportion who hold the opposite view.
Suggests that Germans will be cautious spenders for the foreseeable future,
given the state of the European economy, with only 1 in 5 being more relaxed
about spending money compared with a few months ago.

12. SECTION 2:
Purchasing Behaviour

13. 13
Purchasing Behaviour
The majority of grocery shopping happens in supermarkets
– between 55% - 73% of produce is bought in supermarkets
– followed by discounters (between 32% - 62%)
German consumers buy the best they can afford
– ABC1s do most of their grocery shopping in supermarkets, except for
meat, cold meats & bread/cakes, where they tend to ‘trade up’ and
purchase at specialists (butchers/bakers)
– C2DEs do most of the grocery shopping at discounters, except for meat,
cold meat & bread/cakes; here their trade up is to buy at supermarkets or
butchers/bakers
Organic food shops serve a niche market
– Lifestyle decision
– Across age bands & socio economic groups
– Requires a certain income (typically €40k+) to be able to pay the ‘organic
premium’
– Important to note: increased availability & choice of organic produce in
supermarkets and even discounters

14. 14
Purchasing Behaviour
For meats, cold meats & fish, supermarkets are clearly
preferred over discounters
The same is true for dairy products
Shoppers were more likely to buy fruit & vegetables at a
discounter, compared with meat or fish products
Tinned food & confectionary are more likely to be bought
at discounters, compared with other food products
– Suggests that consumers don’t expect a quality benefit
by buying these products from a supermarket, but
decisions are based on cheapest price

15. 15
Purchasing Behaviour
Meat & cold meats are frequently bought at the butchers
– NB:
• German butchers offer not just meat and poultry, but cold
meats, pre-prepared dishes, local delicacies, salads,
tinned meats, and sometimes offer a take away service
• Traditionally, butchers operate on a local level, producing
their own meats.
– Offers reassurance regarding traceability & quality of
the meat & accountability of the butcher

16. 16
Purchasing Behaviour
For bread and cakes, bakers are the preferred source
– Typically, family run, local businesses
– But some regional chains exist
– Supermarkets offering breads & cakes often do so through a
separate bakery within the premises

17. 17
Purchasing Behaviour
20% never buy wine or beer and 29% never buy spirits
12% buy beer and 18% buy wine from ‘other sources’
These are likely to be specialist drinks retailers and in the case of wine –
wine producers
Specialist drinks retailers offer non-alcoholic and alcoholic drinks in large
volumes
– Selling by the crate
– Empty crate & bottles are returned for
replacement & recycling

18. 18
Purchasing Behaviour
1 in 10 shoppers buy fruit and vegetables straight from the
farmer
Also popular: weekly farmers’ markets
Germans enjoy and celebrate seasonal produce, e.g.:
• Asparagus season
• Strawberry season
• Federweisser
• Beaujoulais Nouveau

19. 19
Supermarket and Discount Store Use
(Base: All adults 16+, 1,001)
Supermarket Discount Store
% %
Kaufland 19 Aldi 25
Edeka 19 Lidl 24
Rewe 16 Netto 13
Real 11 Penny 7
There is a greater variety of national and regional supermarket chains, compared with
discounters.
Discounters operate on a national level.
Product placement in a national supermarket and/or a discounter is likely to achieve the
greatest exposure to a large number of consumers.
Product placement in a discounter may achieve highest consumer exposure, but needs to
be weighed up against price & image & brand considerations & target consumer market.
The focus on a regional supermarket chain will facilitate controlled market entry trials.
(All others less than 5%)

20. 20
Purchasing Decisions
(Base: All adults 16+, 1,001)
Disagree Totally agree Neither
(1) (2) (4) (5) % 4/5
/nor (3)
It is important to shop around – 1 30 60 9 90%
The origin of product is important to me 35 42 25 25 67%
You can get better deals online 36 37 22 32 59%
I prefer to stick to what is tried and tested 27 39 12 40 51%
I am prepared to pay more for 11 15 31 14
environmentally friendly products 29 45%
A good relationship with a supplier is more
important than saving a bit of money 7 13 30 11 39 41%
It is exciting to try new products from
around the world 8 14 31 10 37 41%
I would borrow money to pay
for a holiday 58 18 7 2 15 9%
Very few (9%) would borrow money for holiday, this indicates a certain level of risk aversion.
A large majority (90%) feel it is important to shop around.

21. 21
Product Quality and Characteristics
(Base: All adults 16+, 1,001)
Which factors reinforce product quality Not at all A little A Lot
(1) (2) (3) % 2/3
Test results (Stiftung Warentest) 91%
TÜV Approved 86%
CE Certification 82%
Endorsement by expert 79%
Trade magazine review 79%
Product literature 78%
Recommendation by 76%
friend/relative
Brand/reputation 70%
Country of origin 65%
Newspaper article 61%
Advertising 36%

22. 22
Product Quality and Characteristics
All factors were important, except advertising
– BUT: advertising has of course an important role to play in terms of
raising product awareness and building your brand in Germany
Most important factors in convincing German consumers re product
quality were:
– ‘Test’ results & TÜV approved = ie German certifications ahead of CE
marking,
Stiftung Warentest
– A German consumer organisation involved in investigating and
comparing goods and services in an unbiased way.
– Founded in 1964.
– Very well-known & has an established reputation as an independent
and reliable organisation.
– The foundation has a considerable influence on the buying behavior
of consumers.
– Good ratings are often given great prominence in product
advertising and on product packaging.
– Stiftung Warentest carries out more than 200 comparative product
tests and investigations of services from nearly all areas of everyday
life every year.

23. 23
Country of Origin – Impact on Product Choice
(Base: All adults 16+, 1,001)
NegativeNeutral Positive
(1) (2) (3)
German
France
Ireland
Italy
Holland
Britain
USA
India
China
The majority (75%) are ‘patriotic’ towards German goods.
A product coming from Ireland is regarded as positive by nearly 1 in 3 of
German consumers.
This is in line with results from other European countries, except Great
Britain, where results were less favourable.
There was strong negative disposition towards products from China and
India.
Germans were mostly indifferent or negative to the ‘brand’ US.
➜ ‘Made in Ireland’ is likely to positively influence German consumers’
purchasing decision.
➜ Irish manufacturers should ensure clear differentiation from Great Britain.

24. SECTION 3:
Online Shopping

25. 25
Internet Access and Online Shopping
(Base: All adults 16+ – 1,001)
Internet Access Smart Phone (or other
at Home mobile internet device)
% %
Shop Online
%
99% 1% No 44% 56% No
Yes Yes
No
7%
Yes 93%
25 – 34 year olds 61%
ABs 59%
Nearly all (99%) have internet at home and 9 in 10 (93%) shop online.

26. 26
Products Purchased Online
(Base: All who shop online – 936)
Never Sometimes Regularly
% % %
Books/magazines 19 49 32
Clothing 18 54 28
Banking and finance 49 27 24
Holiday/flights 30 48 22
Entertainment – games, music, movies 27 53 20
Medical goods/drugs 43 39 18
Electrical equipment 15 68 17
Computer software 25 59 16
Computer hardware 33 52 15
Telecoms/internet services 39 46 15
Insurance 61 31 8
Sports equipment 43 49 8
Jewellery 61 35 4
Arts & crafts 78 20 2
Groceries 77 21 2
Books and magazines are the items most regularly purchased online, followed by clothing
and travel. Split attitude towards online banking (50/50). Groceries are least purchased.

27. 27
Other Products Purchased Online
(Base: All who shop online – 936)
Toys DIY
Animal food/products
Gardening Car products
products/plants
Furniture
Collectors items e.g. Presents/Vouchers
Coins/stamps

28. 28
Most popular websites used regularly to shop online
(Base: all who shop online – 936)
% % % % % %
65
52
12 10 6 5
Amazon and Ebay are the most popular sites used to shop online
with 2 in 3 (65%) using Amazon regularly. Large variety of websites
were used – over 200 different websites were mentioned.
(All others less than 5%)

29. 29
Importance of Different Factors When Buying Online
(Base: Who shop online – 936)
Not at all Very
important important Neither
% 4/5
(1) (2) (4) (5) /nor (3)
Product return/opt out options – 1 33 58 8 91%
Cost of delivery – 1 33 58 8 91%
Secure payment option (e.g. Paypal) 12 30 59 8 89%
Selection of products/services – 3 45 39 13 84%
Speed of delivery – 4 48 35 13 83%
Ease of navigation 13 42 38 16 80%
Translated into German 25 30 45 18 75%
German contact number 25 35 38 20 73%
Origin of product/service 14 45 27 23 72%
Supplier Rating 26 42 26 24 68%
Customer comments/forum 3 9 41 19 28 60%
German company 4 8 34 18 36 52%
Online testimonials 4 9 34 15 38 49%
Recommendation by 3rd party 7 14 26 8 45 34%
Product return / opt out options and cost of delivery are the most important factor when buying online
– may present a challenge to Irish companies to compete with mainland suppliers.
Other essentials: Secure payment option, translated into German and a German contact number. (NB:
Only 14% rate their English as very good, and 46% quite good, leaving 40% with poor or no English).
(Q.2.7)

30. SECTION 4:
Attitudes Towards Ireland

31. 31
Attitudes Towards Ireland
Ireland = Die grüne Insel
(Base: All adults 16+, 1,001)
%
Green Island 61
Beautiful nature/scenery/countryside 31
Unspoiled nature 25
Island 17
Hospitality/nice people 12
Butter 11
Economic crisis/unemployment 11
Rough climate 11
Holiday destination 9
Agriculture/organic/high quality produce 8
Sheep/cows 8
Whisky 8
Old/traditional 4
Ireland is most commonly perceived as a green island with beautiful scenery and
nature, and indeed butter.
* All others under 4%

32. 32
Prominence of Irish Brands in Germany
(Base: All adults 16+, 1,001)
Primary
Ever Ever
Used Heard of
Bailey’s Irish Cream Higher for 35-44
55 77 year olds: 82%
Kerrygold 60 75 Higher for 55+ 80%
Guinness 34 62
Ryanair 12 48
Tullamore Dew 16 32
Kilkenny Beer 14 27
Aer Lingus 3 20
Old Irish Marmalade 8 17
House of Ireland 1 16
Butlers Chocolates 4 15
KerryGold and Bailey’s are very popular with 3 in 4 having heard of these brands.
As is to be expected: brand awareness and usage higher amongst those who have
visited Ireland.

33. 33
Irish Products – Wish to Buy More Easily Where Live
(Base: All adults 16+, 1,001)
%
Would like to be able to buy
Butter 33 Irish products more easily
Cheese 32
Whiskey %
26
Tea 23
Beer 20
Jams/ Preserves 20
Lamb 17 27% No
Yes 73%
Chocolate 16
Beef 16
Bacon 15
Biscuits 14
Music 14
Clothing 12
Other sweets/confectionary 11

34. 34
Irish Products – Wish to Buy More Easily Where Live
Delicacy / Fine Food
Marmelade
55+ Lamb
Cheese (m)
Beef
(m)
Butter
Broad Appeal / Family Food
Bacon
Age Beer
(m)
Treat / Indulgence Food
Young Men on the Make
Biscuits
(w) Whiskey
Clothes
TeaChocolate (w)
(m)
(w) (w) Sweets
Music
(w)
18
€20k Income €60k+
C2 SEG AB

35. 35
Ireland as a Holiday Destination
(Base: All adults 16+, 1,001)
Have you ever visited Ireland?
%
Yes, more than 2 years ago
8%
No 90%
2%
Yes, in past 2 years
More likely to have visited Ireland:
• 25 – 34 year olds
• 55+ year olds
• ABs
• €40K+
• Fluent in English

36. 36
Overall Impression of Ireland
(Base: All adults 16+, 1,001)
Totally Totally
disagree agree Neither
(1)(2) (4) (5) % 4/5
/nor (3)
Ireland is a great holiday destination 45 24 43 24 67%
I would be concerned to do business with
an Irish company because of financial 7 19 4 6 64 10%
problems the country has
I am less likely now to visit Ireland 40 9%
because all of the negative press 25 26 63
Ireland viewed as a great holiday destination and negative press not
having a major affect. Nevertheless only 2% came here in past 2 years.

37. 37
Visiting Ireland
(Base: All adults 16+, 1,001)
Likely to Visit Rating as a Destination
% %
Very Likely (10) 3
6 9% Very Good (10)
(8-9) 17
(6-7) 14 53%
(4-5) 25 (8-9) 36
More likely to visit
(2-3) 15 Ireland:
52% (6-7) • 18 – 24 year olds
27
• C1
• €40K+
Very Unlikely(1) 37 • No children
(4-5) 16
(2-3) 3
Very Bad(1) 1
Disconnect exists as majority rate Ireland as a
good Holiday Destination yet only 1 in 10 (9%) likely to visit.

38. 38
Holiday Activities Enjoyed by Germans
(Base: All adults 16+, 1,001)
%
City Sightseeing 81
Relaxing/Doing nothing 68
Going to the beach 67
Shopping 59
Hiking 49
Visiting museums/Galleries 45
Organised bus roundtrips 30
Cycling 29
Going to theatre/shows 17
Camping 9
Those likely to visit Ireland
Fishing 6
particularly enjoy the following
Horse riding 4 holiday activities:
Golfing 2 • Sightseeing
• Shopping
• Visiting museums/galleries
• Hiking & cycling
• Organised bus trips
• Going to the theatre/shows
All other activities less than 2%

39. 39
Countries Where Germans Have Been on Holiday
in the Last 2 Years
(Base: All adults 16+, 1,001)
%
Have been on holidays in
Germany 66
the past 2 years.
Austria 19
Italy 19 %
Spain 18
France 13
Turkey 13
No
Holland 10 12%
Switzerland 9 88%
Yes
England 8
Denmark 6
Greece 6
USA 6
Czech Republic 5
Croatia 5
Egypt 5
Outside of Germany Austria, Italy and Spain are popular destinations.
Germans visit 1.3 destinations on average per year = 1 – 2 holidays/pa
All other activities less than 5%

40. 40
Most popular Destinations for those likely to visit Ireland
(Base: All likely to visit Ireland - 162)
%
Germany
Austria
Spain
France
Italy
England
Switzerland
Denmark
Holland
USA
Ireland’s ‘‘competition’’
– Most offer easier/cheaper access
– Austria/Switzerland/France & Italy offer summer & winter holidays
– Austria/Switzerland/Denmark offer similar imagery as Ireland
• Beautiful nature, peacefulness, freedom
– Spain, France & Italy offer warm weather & beach holidays
– England & USA for anglophiles

41. 41
SUMMARY & CONCLUSIONS

42. 42
Summary & Conclusions
The research confirmed: opportunities for Irish products exist in
the German market
– 73% of German consumers welcome the introduction of more
Irish products to the German market
As far as food products are concerned, they were particularly
interested in:
– Dairy products (to build on the success of KerryGold)
– Whiskey & beer
– Meat (lamb & beef)
– ‘Breakfast items” : tea, marmalade / jam & bacon
Also popular were: chocolates, biscuits & sweets = indulgence
food & treats

43. 43
Summary & Conclusions
Portrait of a German consumer:
– Shops around
– Looks for value for money
• Quality of a product is key
– Is an informed shopper
• Reads technical product information & test reports
– Takes a conservative approach
• To spending money, eg holidays on credit is not an
option
• To product choice, eg ‘tried & tested’ over ‘exciting &
new’
– Experienced online shopper:
• Seen to offer better value for money

44. 44
Summary & Conclusions
What will convince German consumers of product quality?
Consumers place great value on German test reports,
certifications & expert opinion
Origin of a product can positively or negatively influence
product choice
Favourably disposed towards Irish products
More so than UK and/or US
Important to achieve clear differentiation
German consumers believe that specialisation & personal
accountability ensure better quality products worth paying a little
extra for, e.g. butchers & bakers

45. 45
Issues for Consideration: ‘Product’
Know who your German target market is
– May be different from your Irish/UK market
• Eg: ‘Young whiskey drinkers’
 Ensure marketing strategy and planning fit with the German target
market
Determine the best positioning for your products
– E.g orange marmalade currently considered more of a delicacy,
rather than everyday breakfast item
➜ Do you go along with existing perceptions?
• Sell as a premium product
➜ Do you aim to change perceptions via POS, advertising, etc?
• Achieve wider consumer appeal

46. 46
Issues for Consideration: ‘Product’
Make sure you are aware of German market ‘peculiarities’ that
may affect your sales & success
– Areas where things work differently, compared to the Irish market
• E.g.: the selling & buying of drinks
– Will require:
➜Different packaging – larger packs or crates
➜Recycling considerations need to be taken into account
– Limit the use of secondary packaging
– Different material
– Less use of single portion packs

47. 47
Issues for Consideration: ‘Place’
Target product positioning will determine the type of retailer you
will wish to place your products with:
– Low price / high volume: discounters, with national coverage
– Higher price / possibly lower volume: supermarkets
• More diverse channel with regional & national chains & their
own brand positioning
➜ Consider initial market trials
– Test in one region first, which is very feasible in Germany

48. 48
Issues for Consideration: ‘Place’
Given the popularity of online shopping, websites present an
excellent opportunity to promote and sell non-grocery items.
Particularly:
– Clothes
– Travel & Tourism
Critical for success:
➜ Secure payment option
➜ Product return option
➜ Competitive delivery cost and speed
➜ Translated into German
➜ German contact number

49. 49
Issues for Consideration: ‘Price’
Income levels in Germany are (still) lower compared with Ireland
However, the standard of living in Germany is high
– Lower cost of living
– Lower retail prices
E.g. 1l bottle of carbonated water:
– German supermarket: 30c – 50c
– Aldi/Lidl Germany: 13c – 15c
– Aldi/Lidl Ireland: 25c – 39c
– Tesco Ireland: 25c - €1.86
➜ Irish businesses need clear understanding of retail & wholesale
pricing structures
– Margins not comparable with Ireland
– The cost of transport & logistics needs to be factored in

50. 50
Issues for Consideration: ‘Promotion’
Successful branding as a ‘premium, high quality’ brand is critical
– Low margin on ‘commodity’ products
‘Made in Ireland’ likely to positively influence food/fmcg
purchasing decision
– Reinforces important associations of:
• Free-range
• High quality
• Family run & specialist
• Skill, experience & tradition
To demonstrate that you are serious about the German
consumer and the German market, packaging, advertising, POS,
websites, etc have to be in German