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Increasing exports of German manufactories to the BRIC states
German handcraft sticks to its excellent reputation, nationally and internationally. According to a survey among the members of the “Initiative of German manufactories – Handmade in Germany” Brazil, Russia, India and China, the so-called BRIC states, have become important markets for the German Manufactures. All the surveyed manufactories claimed increasing sales in the BRIC countries over the last years.
Being organizers of this year’s most important sport events, Brazil and Russia are in the centre of international attention. But Brazil and Russia are not only interesting for fans of the Olympics and football fans. German manufactories discovered those emerging economies as new export markets. Thanks to their rapidly growing middle and upper classes, those countries have become attractive markets.
The survey displays that nearly half of the members of the “Initiative Deutsche Manufakturen” are already exporting their goods to the BRIC states, particularly to Russia and China. All participating manufactories indicated that their exports to those countries have constantly increased in the last three years. The share generated in the BRIC states by the manufactories is up to 10 percent of their total revenues. In one special case the proportion of exports to China even represent 23 percent of the manufactories’ revenues. “The more luxury, the better” especially reflects the desires of Russian and Chinese customers.
The manufactories surveyed rely on the country-specific know-how of their external business partners. “Having the cultural differences in mind is indispensable for a successful expansion,” says Ulrich Welter, managing director of the company Welter-Wandunikate. Besides cultural specificities, networks are important for the manufactures. In order to build those networks, the members of Handmade-in –Germany cooperate with each other – for instance the Königliche Porzellan Manufaktur Berlin (KPM) from Berlin and Welter-Wandunikate by sharing a showroom in Beijing. Other manufactures have presences over there.
Growth Rates are also increasing regarding the exports to South America and the Asia-Pacific region.
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