I connect international companies with potential buyers and business partners in Germany. Every now and then, people contact me and request I put them in touch with BMW, Webasto, Hella/Forvia, Schaeffler, Deutsche Telekom, Stihl, Liebherr, and the like.
I just copied and pasted this exemplary list of companies from such a request. Often, mid-level salespeople approach me, telling me they have this incredible database that provides them with the names and maybe even contact details of, for instance, the CTOs of some leading German companies. However, since they couldn’t chase them down by phone, e-mail, or on LinkedIn, they request I pitch their commodity product or service and arrange a meeting—preferably on a commission basis, payable when they close a deal. “Thanks, but no thanks!”
I don’t want to discourage you if what I have just described is your preferred approach, but when trying to get a foothold in the German market, please do not focus all your energy on the “usual suspects,” i.e., the well-known and big accounts everybody in the entire industry would be chasing after. I would instead recommend trying to find hidden sales opportunities in Germany.
Why Chasing Big Names Rarely Works in Germany
Here’s the truth: Everyone is chasing those big companies. Your competitors are doing the exact same thing.
By following the crowd, you’re setting yourself up for:
- Intense competition
- Lower chances of success
- Missed opportunities
Find better sales opportunities in Germany
Try “think out of the box” and find other—often better—sales opportunities in Germany. Consider (also) identifying small and medium companies that are less visible, hence less chased after by your competitors.
How to find such hidden sales opportunites in Germany? Well, that’s not rocket science: Skim through trade journals, look at the members of relevant trade associations, visit trade shows and talk to people.
You can also read industry reports, ask people in your network, or do some “investigative” cold calling. Does this sound like something you might need help with? Well, now we are talking… .
Where better sales opportunities in Germany are actually found
Here are some initial steps you can take to find hidden sales opportunities in Germany:
- Dive into trade journals
- Check trade association memberships
- Attend industry trade shows
- Network strategically
- Do some “investigative” cold calling
You don’t know what German trade shows to visit or why German trade associations are so important? I explain all that in my book Doing Business in Germany: How to Work Successfully with Germans. Of course, you can also ask for my guidance and advice.
But First you Need to Understand the Value Chain
Before you start looking for what industry events in Germany to attend or who to cold call, it’s important to understand the value chain.
There is not much use pitching your product directly to someone who would only buy through wholesale, purchasing cooperatives, or tier 1 suppliers. Once a Chinese steel company requested that I help them sell table-legs to EDEKA and ALDI, which are supermarket brands. What might work in your home market probably does not match how things are done in Germany.
Same applies to technology. One of my clients in the chemical industry had ambitious plans to sell a certain substance in Germany; only to—with my help—find out that over here we largely rely on other processes, hence the market for their product was much smaller than expected. Also, because of the language barrier my client had first considered contacting the companies they found on a list that they came across through a key word search on Google. Good they showed me the list, as it contained only very small plants. As a local, I could instantly tell them so.
Try see Things from a “German” Perspective
Also, don’t just follow the same route your competition has decided to take, because maybe they have (also) not gotten things right, and be careful not to get stuck in a “self-affirmation loop” when it comes to how you perceive the German market and why things don’t work out the way they should.
Challenge your view of the market or market environment and try seeing things from a different, in that case “German” perspective. With that, I am glad to help you: andra[at]andra-ibf.com.