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.
Germany 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 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, home parties in direct sales were temporarily banned during the pandemic.
Jochen Clausnitzer, Managing Director of the Bundesverband Direktvertrieb Deutschland (BDD), the German Direct Selling Association, observes the digital transformation, saying, “Multi-channel distribution, especially personalized e-commerce 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 ‘Commerce 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.
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. But service providers also 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 idea to potential investors.
In 2022, the BDD has also published an updated founder’s guide, which highlights legal circumstances and provides practical tips and tricks. Because the German market is also interesting for many direct sales companies abroad, the guide was also published in English and can be ordered either on Amazon or directly from the association at info@direktvertrieb.de.
Annual Market Study on the Situation of Direct Selling in Germany
The BDD regularly publishes a market study to present the direct selling situation in Germany. One of the biggest challenges is 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 the doors for 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 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 can be seen that direct sales have been growing continuously for ten years and are increasing their sales every year. In the survey, managers from direct selling companies in Germany are questioned. 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. For more detailed information in the recent direct selling market study for Germany: Market Study 2023.
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Written by Jochen Clausnitzer. He has been the General Manager of the German Direct Selling Association (BDD) 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.
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