Germany is the largest European consumer goods market - Essay Example

Download file to see previous pages... The social market economy of Germany has made it very favorable since the formation of the federal republic. The policy makers have continuously pursued the parallel national goals of export driven economic growth as well as a national social cohesion that will ensure even the foreign investors are treated well and with respect just like the nationals of that country. This has been done through the robust system of social welfare programs. There are many government funded programs which in due time reduce economic disparities and affect every person who is in Germany.
The result of this is that the citizens in Germany will be well to do and their incomes are going to be higher resulting to increased consumption and sales. When the investors from the different countries have a variety of products like the consumer goods which are not in Germany, the consumers will tend to try the new products as they have the finances. The law of demand applies here in that the higher income will increase the demand of the goods and will also go for the new products which are in the market the political leaders have shown a greater concern for the economy of the country by sacrificing to see to it that the social cohesion is obtained.
Germany is the largest European consumer goods market. It has a very large population that ranges beyond 82 million people. This offers a wide market for the new goods in the form of clothe as the higher population creates a greater demand for the goods. The retail trade is the third revenue generator in Germany. The high population is in the higher proportion with the young generation who has high money volatility. They have a high definition of the new clothes and will there for favor the investments in that place. Their spending is very high especially on new things and will therefore consider taking the new consumer goods and therefore this can be a very good market. Germany is experiencing a low inflation rate. This ensures that the living standards are moderate and that the goods are not that expensive from the outside world and investments in that country. The living standards are therefore very low as compared to many other countries and therefore the spending power is very high. The domestic purchasing power in the recent years has experienced a stable growth even considering the economic crisis in the past few years that has seen the euro go down and some economies like that of Greece suffer but Germany has remained intact and has in fact ended up being the savior to these economies. The consumption level decreased by 0.5% in 2010, from the previous year. It is this that has made Germany one of the worlds thriving private consumer markets. [Andreas Falke, 2009] There are very many retail industries. In 2009 only, the retail revenue in the country was 398 billion which brings it at the top three retail markets in Europe together with France and UK. This has made it a home to a rich and diverse market surrounding. The small and medium sized enterprises have become part of this environment and there are more than 400,000 companies and 2.9 million employees thus making the retail sector among the most ...Download file to see next pagesRead More