When it's time to do business in Germany: Tips for clean-tech leaders

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With the German market leading the world in renewable energy technology exports, it’s an opportune time for Oregon businesses to forge ties overseas. But before you hop the next flight to Frankfurt, you should know that there’s something of an art to being successful in the German market.

Getting started in Germany

How can Oregon companies leverage this competitive advantage in marketing and sales?

First, prepare. A successful start in Germany includes taking steps early on to ensure that your company has expert knowledge of the German market you will be serving.

Rob Warmack, senior director of international marketing at Portland-based Tripwire, heads up the company’s expansion into EMEA markets. He says Tripwire considers the German market a top priority because of its buying power and influence across Europe. He also says the effort has taken patience — to learn about the market dynamics and build local relationships.

The need to learn about German markets and business culture is confirmed by Katja Korehnke, President of Cologne-based Korehnke Kommunikation. She says American companies are often surprised at the many hurdles to entering the German market. The main difficulties are an incomplete grasp of the local market situation and different business cultures.

The German market for clean tech

The German government's Integrated Energy and Climate Program is the world’s most extensive package of energy and climate policies. By 2020, the program aims to:

• · Use renewable energies to generate between 25 and 30 percent of the country’s total electricity production.
• · Satisfy 14 percent of all national heating requirements with renewable energy.
• · Reduce emissions of greenhouse gases to 40 percent less.

However, due to Germany’s current financial woes, the government recently cut feed-in tariffs, the funds that subsidize the country’s solar power projects. What’s more, in May 2010, the German Parliament voted to freeze the budget for financial support to various other renewable energy programs.

With fewer subsidies for green energy firms in Germany, American companies can take advantage of the competitive opportunity.

Market information programs such as the U.S. Commercial Service’s Showcase Europe are a good way to begin your preparations. Showcase Europe is a USCS program designed to support U.S. business interests in Germany and throughout the European Union. The program provides an excellent source of contacts, market information, and commercial guidance for U.S. companies wanting to enter German wind energy, photovoltaics and green building markets. For example, GreenBuild Germany is part of the GreenBuild Road Shows, another U.S. Commercial Service program, which helps U.S. green building companies extend their reach to German markets.

German business culture

Knowledge of German business culture is also a must. Despite sharing a common market, each country in the European Union has its own identity and national standards. Succeeding in German markets requires a uniquely German approach.

As part of your national marketing and communication plan for Germany, find and appoint an onsite public relations representative, perhaps by asking your European and U.S. contacts for referrals to trusted agencies in Germany. Several Oregon firms might share a representative, saving significant time and money in establishing business ties. Or, search government information sources for leads to potential German business representatives, services, and partners.

Remember, in Germany, “serious” sells. Compared to the U.S., German business culture takes a more conservative approach to new relationships. Germans prefer no-nonsense, matter-of-fact business communications. Face-to-face contact is very important, especially for initial meetings.

Trade Shows and Presentations

Tradeshows and conferences are excellent places to meet potential clients. Because German trade fairs attract impressive numbers of visitors and exhibitors, there is probably no other venue where American companies can get as much product exposure for their marketing dollar. American trade specialists regularly work at U.S. embassies and consulates in Germany and come together at selected trade fairs for the sole purpose of supporting U.S. firms.

You can build your credibility by preparing your roadshow materials carefully, using content standards that a German audience expects and by presenting information formally and factually. There is no easier way to undermine your marketing efforts than by reinforcing the common German stereotype of Americans as glib, business lightweights. In Germany, persuasion requires a logical flow of ideas, and decisions are based on logic and information analysis, rather than on intuition and personality.

Demonstrate your company’s credibility by referring to projects that are favored by European companies and showing your knowledge of the European market and its various national energy policies.

German companies are great in developing cutting-edge technology but less successful at marketing and selling their products. Take advantage of your better marketing skills to promote clean-tech products and services, and you’ll close the gap.

Tamarie Johnson is the director of TNT Communication, a marketing and public relations group based in Portland and Auckland, New Zealand. TNT focuses on helping companies enter new markets.