We are very excited to announce that we have formed a partnership with our first Danish brand Angulus, a family-owned company from Copenhagen that has been producing shoes for over 115 years. Together with FSG, Angulus is now taking the step to gain more visibility and presence with their shoes and designs on the German market.
“Germany is a natural next step in the journey of Angulus.With a close connection to Denmark culturally but also with similar consumer habits, we truly believe that Angulus has a place on the feet of the German consumers.” says Sebastiane Dawe, CEO of Angulus.
As a market leader in Denmark, Angulus believes that future growth must come from breaking down borders and supplying the German feet with their premium product. Due to the fact that Angulus is, by nature, less known on the German shoe market FSG and Angulus have the important task to spread the Angulus story across Germany.
Sebastian and Angulus are mostly looking forward to “learning to understand the German digital consumer. With the brand story of Angulus and the expertise of FSG combined we hope to learn substantially about digital branding and e-com in a German context”.
Radboud Langenhorst, FSG’s CEO, says: “This is a special occasion for FSG, because we signed our 1st client from Denmark, especially because Angulus is an iconic and known brand there. In the last years FSG has developed a strong preference for high quality and long-lasting fashion items. Angulus exceeds these preferences greatly with their shoes designed for the entire family in combination with the Nordic design that the German audience loves. Helping them tell their unique story & growing their brand in Germany is something that the entire FSG team is looking forward to. “
We always ask ourselves when talking to potential new partners: do we believe in what they do? In this case, the answer was a strong yes. Sustainability is an important issue for many Germans. But if you, as a brand, want to make a difference in the world, scaling is the key. We believe that Kings of Indigo and FSG together will be capable of gaining awareness when it comes to sustainability.
For more than 20 years Tony Tonnaer has been working in the denim industry and is owner and CEO of the denim brand Kings Of Indigo. Founded in 2012, in the Netherlands, they make sustainable denim designs inspired by a mix of vintage workwear, classics and sportswear from the USA and Japan. With its main focus on making items that last and being as sustainable in every way as possible.
Kings of Indigo has been focussing on the German market from day one on, it’s their biggest wholesale market. They see a lot of potential here due to the rising interest in sustainable clothing in Germany. “However we currently sell less online in Germany than in the Netherlands, this is why we would like to develop Germany as a second online home market”, Tony Tonnaer says.
“Furthermore I see FSG as an important partner to change our business from wholesale focused to omnichannel focused. We can continue to develop the market in DACH and at the same time gain knowledge for other markets by developing the FSG dashboard for them as well.”
Radboud Langenhorst, FSG’s CEO, adds: “Tony and I have been talking about growing KOI together in Germany for a long time, and I am extremely happy that we have finally made it work. Next to the great products of KOI, we share similar values and beliefs in terms of business which made the contact so far very pleasant and open.
It is no surprise that sustainability is a hot marketing topic these days due to which many brands are claiming that they are sustainable. Having the opportunity to work with KOI, being one of the true pioneers in the field, is something that makes our team very enthusiastic and we are looking forward to helping them with really making an impact in this industry.”
Would you like to benefit from the e-commerce opportunities in Germany? Then get a German perspective on your marketing. If you’d like, we can provide you with that perspective. Feel free to reach out to us.
Berlin – We are excited to announce that starting this month, FSG will support online arts platform Ohmyprints with gaining brand awareness and increasing sales on the German online market.
OhMyPrints, better known as Werk aan de muur in its home country the Netherlands, offers an online platform for creative minds and photographers, where they can sell their pictures and designs. Online shoppers can customize the art works by choosing between different materials, sizes and colors from a huge collection of art works.
‘Our platform has matured over the years in the Netherlands. In 2020, we have sold 42.500 square meters of art all together in the Netherlands. It’s time for OhMyPrints to take the next step. Conquering the German market to us seems like the most logical one. It’s similar to the Dutch market, but much bigger. There are a lot of empty walls in Germany waiting for nice artworks to be hung there’, says Jasper van der Meij, founder of OhMyPrints.
He adds: ‘FSG is going to be helping us with sending out the right message to our German audience. We really think that both countries, the Netherlands and Germany, can support and strengthen each other. In Germany, our competition is fierce. We want to be aware of the differences in both audiences.’
‘In terms of big topics like brand positioning, the really nice value-for-money product portfolio and the webshop performance – OhMyPrints ticks all the boxes when it comes to what is needed nowadays to grow in Germany. When we started talking with the OhMyPrints management team about a possible collaboration, we felt at ease from the start. Both companies have a digital-first and entrepreneurial mindset. I am really happy to have them join us.’, says Radboud Langenhorst, CEO of FSG.
E-commerce was smooth sailing in 2020, with a friendly little nudge provided by the lockdown. Recently, my colleague Radboud wrote about some research by Google that shows how the corona crisis has permanently altered consumer behaviour in Germany. He also shed some light on what that means for growth opportunities in Germany.
Another interesting research paper is provided by BEVH, a German interest group on e-commerce. The most important findings and conclusions from that paper? Read all about it in this blog.
Growth numbers e-commerce Germany in 2020
In 2020, the German e-commerce space saw a rise in turnover of a whopping 92.5 billion Euros. The online sale of physical products rose by 15%. The largest increase at +41% came from the ‘daily essentials’ category, including foodstuffs and medicinal drugs. E-commerce now represents almost 20% of the total retail turnover.
Market places are dominating
For years we’ve seen marketplaces dominate German e-commerce. Almost half (49%) of all German e-commerce takes place on a site or app with a marketplace model. A mere 2.2% of sales is directly from brand or manufacturer to the consumer.
On top of that, in 2020 marketplaces saw the highest rise in turnover. Growth of market places was over 20% higher than the average increase in turnover. In Germany, Amazon is the undisputed market leader. The Seattle-based giant towers over the competition at three times the size of the number two on the list.
The e-commerce tipping point has arrived: online purchases become the norm
According to the research, e-commerce has reached a major tipping point. Three out of four consumers indicate that they will continue or even increase their online purchasing in the future. This means that even after the corona crisis is over and we return to normal life, consumers will to a large degree be spending their money online.
An interesting bit of information is that 25% of consumers consciously choose online shops that strive for sustainability.
2021 e-commerce expectations
The expectation is that 2021 will see an increase of sales of goods through e-commerce of 12.5%. For the first time in history, total e-commerce turnover will cross the magic threshold of 100 billion Euros.
Impressive numbers, but what does this say about e-commerce opportunities in Germany?
These growth numbers indicate great e-commerce opportunities for Dutch brands in Germany. And that is in fact the case. Germany is a giant market and that fact alone makes it a very interesting one.
However, you can’t just copy-paste what you’re doing in The Netherlands. German consumers have different wants and needs, and a different set of expectations. Failing to take that into account will make it a tough market to tackle. There’s no such thing as a free lunch.
Localisation is the key to success
For one, Germans are much more sensitive to sustainability claims. They’re more critical and focus strongly on certifications and quality labels. Another important factor is that of trust. If you have no brand awareness in Germany it will prove difficult to convince consumers, even if you can compete on price. The Dutch consumer is more easily tempted with deals than the Germans. They look beyond price and conduct more research before making a purchase.
Therefore, localisation of your brand is the key to success. Ensure a good German customer service experience and create a brand experience that fits the German culture and audience. Only then will you win the trust of the German consumer.
Would you like to benefit from the e-commerce opportunities in Germany? Then get a German perspective on your marketing. If you’d like, we can provide you with that perspective. Feel free to reach out to us.
FSG is excited to announce its next partnership with Oopsie Heroes, part of the Lifesense Group from the Netherlands. Oopsie Heroes is an innovative medical-technology application that helps thousands of kids with gaining confidence in staying dry at night.
FSG and Oopsie Heroes have big plans for Oopsie Heroes on the German online market. The main goal is for Oopsie Heroes to gain brand awareness online in Germany. ‘We have the feeling that this is the moment for Oopsie Heroes to gain traction in Germany and Austria’, says Paul Swinckels, CCO of Lifesense Group.
The Oopsie Heroes is a medical application that children with bed wedding issues can wear at night. The application is connected to a mobile phone that will warn the sleeping child when it’s time to get out of bed and visit the restroom, and uses ‘gamification’ to activate the child to use the app.
‘Over the last few months, we have been focussing on making sure the Oopsie Heroes will be deductible for German citizens through their health care insurance. This is already the case in the Netherlands, Australia and Belgium. Oopsie Heroes is looking forward to working with FSG’s team on making Oopsie Heroes a success in Germany’, says Swinckels.
Radboud Langenhorst, FSG’s CEO: ‘Stepping into med-tech as a new vertical is of course an extremely exciting opportunity for FSG. In our talks with the management team of Lifesense Group, it became clear that Oopsie Heroes is a truly groundbreaking application. I am very much looking forward to this partnership and to growing Oopsie Heroes on the German market.’
Corona’s impact on brands and e-commerce in Germany is unprecedented. The pandemic has caused the shift from offline to online shopping to gain enormous momentum. Achim Berg, partner at McKinsey: “We’ve seen a transition that would have normally taken six years in only eight months.”
What does this rapid change mean for your brand when operating in Germany? How can these growth opportunities benefit you? And which strategy ultimately yields the best results? In this article, I will share our findings and learnings with you.
How consumer behavior has changed in Germany
Firstly, let’s zoom in on the change in consumer behavior. What changes are most noticeable? Research by Google uncovers three major changes in the German market. The results may not surprise you, but it’s important to take a closer look at them.
Online shopping has become the new norm.
German consumers do more online research. People have more free time and use it for digital window shopping.
Consumers have become more conscious about their shopping. Sustainability and buying local have become important aspects.
The same research by Google offers us another important insight: more than ever, media consumption is centered around mobile, social and video. This is nothing new of course, yet the growth of online media consumption is impressive:
29% watch more streaming media; impactful from an advertiser’s perspective since these are channels that don’t offer advertising opportunities.
49% spend more time on mobile devices.
25% watch more online videos, for example on YouTube.
The most important finding however is this:
German consumers have thoroughly embraced online shopping
87% of Germans are happy about the transition to online shopping.
62% of Germans will continue to shop online, even after the corona crisis ends.
24% of Germans buy online as much as possible, even products they previously bought offline.
Zooming out, we notice four major developments.
People spend more time online (more frequent and longer).
More people have started to buy online. Even the late majority and laggards are now following suit.
People buy more of the same products online.
People increasingly buy different, new products online. A good example is Auping, for whom we now sell beds online in Germany.
The online piece of the pie has clearly become much bigger and more attractive. At the same time, online marketing has grown increasingly complex as everyone tries to get in on the action. It’s against this backdrop that we as FSG say that now is the time to invest more in online marketing.
We notice that e-commerce organizations are speeding up investment in their (mobile first!) platform, CRM, fulfillment and value added services. Personalization, marketing and automation are also part of that effort. As a result, these things will become hygiene factors rather than distinguishing features within a few short years. Since standing out from the crowd is vital for growing your brand, we pose the following question:
How do you distinguish yourself?
What strategy makes your brand excel and yields the best results? At FSG, we advise brands in the German market place the following:
Invest in digital brand awareness, now
Firstly, investing in digital brand awareness now will lower your cost per acquisition down the line. By down the line we mean the moment your campaign needs to generate a spike in sales, for example surrounding a product launch or during an event such as Black Friday.
Create an overarching 360 degree campaign
Real online sale success doesn’t come from a singular focus on product campaigns. You need to invest in overarching 360 degree campaigns with a relevant theme.
Extend the customer journey
This might seem counterintuitive, since most companies strive to spend their media budget as efficiently as possible. However, this is a smart investment. The more online moments of contact a consumer has with your brand, the more top of mind your brand will be, increasing the willingness to buy. We can clearly see this in the data of our clients. Check out the example further on.
Content, content, content!
This shouldn’t need explaining. Content is king in the online world, so invest in good quality, localized content.
Taking these four points of advice to heart will likely cause a short-term dip in your ROI. Not surprising, since you’ll need to invest. In the long run however, your yields will go up. As your piece of the online pie gets bigger, the same will happen to your gross profit margins.
Allow me to demonstrate this with a campaign we did for Paula’s Choice in Germany.
Campaign example: Paula’s Choice
To maximize the ‘corona’ growth opportunities during the Glamour Shopping Week (a large online event in Germany) we developed a 360 degree campaign for the cosmetics brand Paula’s Choice. This campaign started eight weeks before the event with an overarching theme, anti-aging in this case, which we tied to the launch of a new product.
During the first stage of the campaign, we used expensive acquisition channels including top influencers and communities, YouTube and TikTok. Additionally, we set up collaborations with key online players like Niche-Beauty and Breuninger.
Through these channels, we started to fill the funnel way before the peak of the campaign.
The campaign almost doubled the revenue compared to last year’s campaign. But the most striking result? The large majority of revenue growth and new customers came from prospects who had touch points to the campaign through five or more channels.
This is why we recommend to extend the customer journey. You create more touch points with your brand and this will pay off during the peak of the campaign.
Doubling the revenue required raising the media budget by over 200%. Now you might wonder: why do you consider that a success? Well, it is. And as strange as it may sound, we have corona to thank for it. Because the lockdown has drastically increased the online pie over the last year. This allowed us to realize a 75% increase of the gross profit margin for Paula’s Choice. And in the end, that’s what it’s all about.
Benefit from growth opportunities in Germany?
Is your brand operating on the German market? And would you like to benefit from the growth potential the corona crisis offers? Reach out to Radboud Langenhorst and discover a world of opportunities.
If you really want to grow as an e-commerce performer in Germany, you need to gain brand recognition. Significant sales are simply not possible without branding. However, launching brand campaigns in Germany can be extremely expensive. At FSG we therefore prefer to opt for a brand localization strategy with community management as the main boost. This way you kill two birds with one stone: you generate reach and user generated content.
Community management as a driving force of brand localization
We will discuss how we FSG uses community management for brand localization in a moment. First, a word about brand localization itself, also known as localization or localized branding. We see that newcomers to the German market sometimes think too casually about this. When in fact the secret of successful cross-border e-commerce lies precisely in brand localization. It lies in branding that is tailored to the local market and local consumers.
It takes more than just translating your brand message into German to do that. Brand localization is all about creating a brand experience that resonates with the local culture and lifestyle of the target audience. But also about finding your own unique place among all those, who have already established their brands.
In this regard, authenticity, credibility and relevance are extremely important. This calls for good local content. And that’s often where the crucial point lies. After all, how do you get good local content, which contributes to your branding, if Germany is not your home market? This is where community management comes in.
The insider community: the secret weapon
In order to satisfy the demand for good local content, we like to work with so-called insider communities. An insider community is an exclusive group of influencers and enthusiasts who are committed to the brand.
Here at FSG, we make contractual agreements with every member of the insider community. This includes not only the influencers, but also the fans, who are in fact just consumers. We want to be able to make use of the content they produce. This is the main reason why we are starting such a community in the first place.
An example: Paula’s Choice
One of the brands where we work like this is the skincare brand Paula’s Choice. An excellent example of a brand that creates brand ambassadors. In May 2018, together with community marketing agency Protein, we started building an insider community for Paula’s Choice. We have made some wonderful achievements as a result of it.
The Paula’s Choice insider community provides the brand with a lot of great “German” user generated content, in addition to reach and valuable customer insights. This includes photos and videos that we can use for other channels, such as the webshop, newsletters and social media.
The Insider Community Pyramid
So how do you create an insider community and how does it look like exactly? Let’s dive into it a little deeper. The insider community is built just like a pyramid and consists of 3 levels: high-level, mid-level and entry-level brand ambassadors.
High-level brand ambassadors
The top of the pyramid consists of 1-2 major influencers, with whom the brand enters into a long-term, commercial partnership. In case of Paula’s Choice, these are influencers with more than 6 million followers.
Mid-level brand ambassadors
Beneath the tip is a layer with 20-30 micro influencers. They have anywhere from 5,000 to 50,000 followers, are a good fit for the brand and like to identify with the bigger influencers. Micro-influencers receive free products and sometimes financial compensation.
Entry-level brand ambassadors
The bottom layer consists of 50-100 die hard fans. They are customers, consumers who are passionate about the brand and like to be part of the community. In other words, they are real brand ambassadors. These fans do not receive free products or compensation, but an occasional discount. For these fans, being involved with the brand is the biggest reward.
Insider community versus social media fanbase
The insider community is unrelated to the number of followers on social media. Unlike the fan base on social media channels, we deliberately keep the insider community small. There are several reasons for this.
First of all we keep it small, for authenticity and credibility reasons. If you start admitting just anyone, it quickly leads to a situation where there is no longer an insider community. This is particularly important for the approved fans in the bottom layer of the pyramid. At Paula’s Choice, we started with 100 entry-level fans in 2018 and now we have about 150, so definitely no thousands.
Another reason for keeping the community exclusive has a practical aspect. Very quickly, a lot of contracts are involved. In addition to this, managing a community is extremely time-consuming because of the large amount of personal contact involved. To give you a better impression: Just for Paula’s Choice we have an influencer marketer and a community manager working full-time on the community in our office.
Community management in action
The main goal of an insider community is to increase the brand awareness. Therefore, we focus the community strongly on creating content in which the values and proposition of the brand are visible. We also sometimes create this content ourselves, in collaboration with the community.
What does that look like in reality?
We organize all kinds of events that involve the entire community as much as possible. For Paula’s Choice, for example, we held special workshops and an interview session with the founder, Paula Begoun. We also do exclusive product launches, surveys, small “Tupperware”-type events at the homes of fans and activities around Glamour Shopping Week, one of the biggest shopping events in Germany.
We are constantly trying to find a topic that will allow us to involve the entire community in our campaigns.
Content production involving the community
A great example is the “Beauty begins with truth” campaign, which by the way was shot with a professional production team. For this production, we had fans tell us all about their skin problems and the role Paula’s Choice played in overcoming those problems. This generated wonderful authentic content, which we then used in our blog and our PR channels.
Ultimately, e-commerce is about sales. Even for us. Here at FSG, we work on a commission basis, so we’re committed to making branding and community management contribute to revenue growth to the maximum degree.
Speaking of sales growth. You might be curious as to what our approach has brought Paula’s Choice. Of course, we can’t give you all the numbers, but we see a clear correlation between sales and community. Since we started the community for Paula’s Choice, sales have increased by 10% annually. We notice it immediately when we are a little less active in the community.
“Worth” of mouth conversions
The result of good brand localization is the sum of its parts. Insider community management, social media, PR and content marketing go hand in hand and not everything can be tracked directly. Especially if you work with fans (customers) and also use print media.
This is why we created a new KPI: “worth” of mouth conversion. This refers to the turnover generated by new customers who used a so-called branded search or direct type-in. This involves filtering for customers who have not been in contact with the brand via other channels in the 28 days preceding the purchase. In short, these are customers who hear of a brand through impressions, recommendations, reading an article or blog post, etc. and decide to make a purchase. So a direct result of an increased positive brand awareness.
In the end, this is the ultimate proof that localized branding and community management are crucial for successful e-commerce.
Want to learn more about community management, insider communities or brand localization?
Want to know more about community management, insider communities or brand localization? Please reach out toRadboud Langenhorst.
Berlin – FSG is proud to announce its next partnership with the Dutch fashion brand POM Amsterdam. FSG and POM Amsterdam have big plans to grow POM’s online business in Germany.
POM Amsterdam was founded by Liesbeth Lotgering and Violet Lotgering, two sisters from the Netherlands who started designing colorful scarves in 2011. Since then, they have added fashionable, colorful dresses, blouses, skirts and suits to their collection, always with contrasting colors and powerful prints.
‘Germany is very similar to the Netherlands in terms of culture and values. We are looking forward to introducing our colorful clothes to German consumers’, says POM’s Managing Director Matthijs Bijl. ‘We are very curious to see which items of our colorful collection will suit German women and are hoping to perhaps add items to the collection that are made specifically with German women in mind.
´I think we can all agree that Germany is always in need of more colorful and eye-catching fashion (;-)), so welcome a board POM Amsterdam! I am really looking forward to our partnership and successfully growing this original brand in the German market,´ says Radboud Langenhorst, FSG’s CEO.
Let’s talk some harcore nerdy stuff for the readers that like new types of information by reading more than 3 minutes instead of looking at funny GIFs 🙂
Together with our super cool data analytics partner Haensel AMS we took the last two years to set up our own data and dashboard system for our clients. For this, we use a dashboard tool that includes all online data sources and is based on a tailored attribution model, that Haensel AMS has developed.
Let’s begin with writing down what Google says actually is an attribution model:
An attribution model is the rule, or set of rules, that determines how credit for online sales and conversions is assigned to touchpoints in conversion paths. For example, the Last Interaction model in Google Analytics assigns 100% credit to the final touchpoints (last-click) that immediately precede sales or conversions.
And to add to this, these sets of rules are predefined and standardized to ensure that it’s one-size-fits-all. Let’s be honest; for most brands this appears to work pretty well, right?
However we agree to disagree here. Why?
Well, because of:
Most european brands we work with are very well known in their home country, but not (yet) in the German market. The German market is fiercely competitive. Brands tend to spend a lot more media budget than in most other EU countries. This means you can easily burn most of your precious budget without having had any impact on your sales;
Nowadays most Ecommerce managers have to make spaghetti out of too many channels, data sources and even different attribution models which can become somewhat complicated to manage and react in a fast way;
And this is especially the case because Google and Facebook, being the biggest players, use different attribution models to make it extra difficult to compare data or results;
Last but not least we had the hypothesis that there is no standardized way of allocating a sale or conversion for the simple reason that when you buy, for example, a bag of dog food (and we happen to sell dog food) the customer journey is different versus when you want to buy a €500,- mattress (and we happen to sell mattresses).
So what did we do?
For each of the brands we are working for, we started with collecting lots and lots of (GDPR-proof!) website event data. Here are the most important variables we track, weigh and value:
the time between customer touchpoints, e.g. a visitor clicking on a Google Search ad which leads to a webshop visit. Two days later the same person is visiting the same webshop through an email campaign.
the type and amount of actions on the specific webshop during a visit. Here you can think of the amount of pages viewed, whether the potential customer subscribed to a newsletter, whether he/she clicked on a product, and went to the check-out page, etc.
On top we further enriched the website traffic data with information from platforms such as Google Analytics, Google Ads, Facebook, ERP´s, etc. These third party data sources are integrated with API connections and automatics daily/hourly downloads.
We don’t want to give away the secret Coca Cola recipe to our model, however what we can say is this results in finally seeing fact-based which channels really matter in the three interaction phases (Initializer, Holder, Closer) for your brand and at what point in the customer journey they do (We keep in mind that most brands have different seasonalities, product launches, shopping events, etc).
On top of that we managed to pinpoint visitors that use both their mobile and other devices in the same customer journey, which means we have pretty accurate data that we can really rely on.
Why is all this pretty amazing?
We e.g. see in our portfolio that for an average customer it takes up to 28 days to buy a product. In this time frame, they visit the website up to 10 times and show different kinds of behavior every visit. And you can do A LOT with this info!
This is what our Head of Ops and BI Juan says, we can do with this kind of information:
We can decide to invest the lionshare of our precious media budget sometimes up to three weeks before a big moment coming up for the brand, for example the launch of a new collection or a big sales campaign. We can allocate a big share of media budget in channels that are normally undermined by default attribution. Yes that feels like risky business, however the numbers tell the tale. The much needed proof for “AIDA” or “Touch-Tell-Sell” approaches than can easily feel like burning money at the wrong moment
We can reliably predict behavior and build so-called bottom up forecasts (starting at channel level) which means we can place safer bets with mostly higher media budgets over time
We have insights on difficult-to-measure channels like influencer marketing, brand collaborations or even PR.
We can collect all this input of different data sources (our own website tracking, GA, Facebook, Influencers, Affiliates, Content partners, etc.) and visualize them in one dashboard tool (right now we are using PowerBI and Tableau for different clients). This means that every stakeholder -from the CEO up until a specific marketing specialist can use the same dashboard, look at the same data and compare apples with apples.
What´s next? According to our Managing Director Radboud Langenhorst it’s all about constantly improving the data quality and understanding how to best work with this data for our clients. Also with this tool we are onboarding a lot of different stakeholders into e-commerce and letting them see the true chances and opportunities through all the costs and risks.
Curious how this works? Please feel free to contact us here. If you want to know more about us, click herefor our website, or click here for Haensel AMS’s website.
Germany is lifting its Corona prevention restrictions. What do German companies (startups and dinosaurs) look like 100 days into the crisis? Germany’s first corporate winners and losers on how they reacted to this crisis, according to FSG’s content marketing expert Maartje.
Marley Spoon/Hello Fresh, Berlin
Restaurants were closed, people were at home, Berlin based Hello Fresh took advantage of the Corona crisis. Their revenue increased by 66 per cent in the first quarter of 2020, one million more people ordered their food boxes. Berlin competitor Marley Spoon also saw its numbers rise. Revenue increased there by 46 per cent.
Plexiglass helps protect people from the very infectious Corona virus. Berliners will find plexiglass in every Späti, supermarket, hair salon or drug store here, protecting workers from customers and the other way around. The German company Plexiglas (written with one ‘s’) was founded in 1903 by a German scientist and was bought by American private equity group Advent International in 2019 for 2,5 billion euros. Since the start of the Corona crisis, production has increased ‘five to ten times’ for the company (total company revenues to the tune of €2 billion ($2.16 billion) in 2018).
Frankfurt based Teamviewer, which allows companies to let their employees work remotely by sharing screens and having online meetings, is going through the roof. ‘Ein der Profiteuren der Coronakrise’, wrote Handelsblad about the company that was founded in 2005. Their revenue in the first quarter of 2020: 102,7 million euros (+19 per cent YoY).
The online fashion platform from Berlin is growing even though fashion in general was hit hard during the first 100 days of the Corona crisis. After announcing this month that the company is still doing well, Zalando said that they are still planning to grow around 10 to 20 percent this year.
The Startups in Berlin
4 out of 10 startups currently don’t have enough money in the bank to survive for another three months, according to data from the organization Startup Genome. Since the start of the Corona crisis, investments in startups worldwide have decreased with 20 per cent. Is funding going to dry up for the Berlin startup scene? In Germany, it’s unclear yet whether and how many startups will file for bankruptcy, since the state has allowed startups to wait with filing for bankruptcy until September 30th 2020. One of Berlin’s Unicorns, Getyourguide, was hit hard, according to data from Priori. Downloads of the Getyourguide app have dropped drastically from around 7.000 daily downloads in February and March, to less than 100 in April and May of this year.
With a float of 760 airplanes and only 80 of them up and running at this point, German airline Lufthansa is clearly hurt. The Frankfurt based ‘Luftgesellschaft’ saw its amount of passengers decline by 99 per cent since the start of the crises. A total of 3.000 flights is cancelled – daily. However, the airline published its 2019 numbers proudly halfway May 2020, saying 2019 was a year like never before. They added that ‘they are looking forward to June, when many travelers will hit the road again’, which made them announce to add 80 more planes to the float. Lufthansa employees currently in Kurzarbeit: 80.000 from 130.000. Lufthansa’s CEO asked the German governement for financial support, however, is not interested in giving away part of its shares in return. ‘We need Germany, but Germany needs Lufthansa, too’, he said.
The car industry, all over Germany
Car sales in Germany have fallen to a historic low. German carmakers have demanded a purchase incentive from Chancellor Merkel, like the one in the crisis of 2008. Back then, Germans purchasing a car, could redeem a 2.500 euro voucher when handing in a used car in order to purchase a new one. VW, BMW, Audi and Mercedes are going through tough times. In April of this year, VW sold 45 per cent less cars compared to 2019 worldwide.
All in all, it’s too early to draw drastic conclusions after the first 100 days. However, the fact that the world will change, is something many agree on. (Read this interesting piece in the Guardian about the potential new world order to find out why, according to the author, the EU will be the biggest Corona-loser of all).
Are you interested in reading more on how we at FSG are dealing with the Corona Crisis for the different international brands we represent?
Read more about what our brand team has done in times of Corona. Or click here if you want to read more about what kind of customer movements we have seen online since the start of the crisis.