Country Overview
Germany is located in the heart of Europe and is a strong sales market with over 80 million inhabitants.
Due to its location, the country is easily accessible throughout Europe. In addition, Frankfurt Airport, one of the largest airports in Europe, is often a meeting point for international partners. The public transport connections between the major cities in Germany such as Berlin, Hamburg, Frankfurt, Cologne or Munich are very good, which makes it easy to travel without your own car in this central European country.
With the UK having left the European Union more and more internationally expanding companies contemplate where to situate their EU headquarters. Germany being the largest direct selling market in the center of Europe is the obvious option with the highest potential for high growth rates. Hence, in the past years Germany experienced an increasing number of requests especially from US companies.
Direct Selling in Germany
Direct selling is an important economic factor for Germany and was able to record sales of 16,03 billion Euros in 2021. That represents the largest direct sales market in Western Europe. Around 900,000 sales partners are largely responsible for this success. Many people who work for the direct selling industry do so on a part-time basis – in Germany, the trend toward second jobs is increasing more and more, partly due to inflation and rising living standards.
Over the past ten years, the direct sales market in Germany has grown steadily. The industry has also evolved and recognized and exploited the potential of digitization. For example, while personal contact and individual consultation remain as the focus, they are perfectly complemented and expanded by online parties and digital consultation appointments. This was significantly aided by the pandemic, through which the industry made it well, due to quick responsiveness to changing market conditions. In Germany, parties in direct sales were temporarily banned during the pandemic.
As we have observed at the Bundesverband Direktvertrieb Deutschland (BDD), the German Direct Selling Association, multi-channel distribution, especially personalized eCommerce-Shops linked to the direct selling channel, have become the new normal. The widely used social media have made it easier to attract new customers and direct sellers to the channel. Direct selling gets more and more digitalized, and part of the social selling has become a sort of interactive “eCommerce deluxe” with personal presentations of the product.
The Bundesverband Direktvertrieb Deutschland (BDD) – Representing the Interests of the Industry
In Germany, the Bundesverband Direktvertrieb Deutschland e.V. (BDD) represents the interests of the industry. BDD has existed since 1967 and celebrated its 55th anniversary in 2022. In these years of the association’s work, one of the main focuses has been to distinguish BDD member companies from dubious direct selling companies and to stand up for fair direct selling. To this end, the BDD introduced a Code of Conduct in 1980, to which members voluntarily adhere. In addition, a control commission was established to check the seriousness of companies wishing to apply for membership. Politically, topics concerning the status of self-employed persons are always in the focus of the association’s work.
More recently, the industry has been focusing more on the topics of continuing education and sustainability. In addition to a self-created online course leading to the qualification “Consultant in Direct Selling,” the BDD has convened its own working group for the topic of sustainability.
Entering the German Direct Selling Market
Direct selling is being perceived by more and more companies in Germany as an interesting sales channel. To support start-ups, the BDD offers an annual founder seminar for people interested in setting up in this sector. Experienced entrepreneurs from the industry talk about their experiences. 
Also, service providers have their say and show which tools can be useful for direct sales. In addition, at the end of the 3-part seminar, participants have the opportunity to present their ideas to potential investors.
In 2022, the BDD published an updated version of its “Founder’s Guide” which highlights legal circumstances and provides practical tips and tricks. Because the German market is attractive to many direct sales companies abroad, the guide was also published in English and can be ordered either on Amazon or directly from the association via email (info@direktvertrieb.de).
Annual Market Study on the Situation of Direct Selling in Germany
Every year, the BDD publishes a market study to present the status of the direct selling industry in Germany. One of the biggest challenges has been reflected as finding sales partners and retaining them in the long term. The shortage of personnel and skilled workers is a major challenge in Germany in general, as the baby boomers are gradually reaching retirement age and not enough young people are joining them. This also opens doors to qualified employees from abroad who would like to work in Germany. With its world-renowned social security system and politically stable conditions, the country is a popular destination for people of all nations and is considered as a classic immigration country.
The market study is published in cooperation with the University of Mannheim and shows how the industry has developed over the years. Currently, it is evident that direct sales have been growing continuously for ten years and the sales volume has been increasing every year. In this study, managers from direct selling companies in Germany are surveyed. Among other things, the results are used by companies in the sector to align their strategies or keep an eye on trends. For example, the survey asks about the most frequently used sales channels and social media activities, as well as future expectations.
…..
Written by Jochen Clausnitzer, General Manager of the German Direct Selling Association (BDD). He has been at this role since 2011. Prior to this, he was representing the legal department in the Brussels office of the Association of German Chambers of Industry and Commerce, as an attorney. Clausnitzer studied law in Berlin and Constance, Germany.
SHARE THIS:
Leave a Reply