Export Action Line

Doing business with Germany

By ATTY. NELLY FAVIS VILLAFUERTE
December 3, 2010, 6:42pm

 MANILA, Philippines – Germany is a country we cannot ignore. It is one of the richest country in Europe. It is also one of the most scientifically and technically advanced countries in the world. No wonder many of us associate Germany with quality products. To many of us, the phrase “Made in Germany” is identified with high-quality products. Finally, Germany is an important European market of our Philippine exports.

Filipino businesses are therefore encouraged to have more knowledge about business practices and culture of Germans.

Let me share with you some information about the culture and business customs of Germans:

• Punctuality is important. Some say that nowhere in the world is punctuality more practised than in Germany whether in business or in social engagements;

• Germans are highly disciplined and have high respect for rules;

• With exceptions of course – Germans are normally reserved, formal, and serious. Unlike Americans, Germans do not use first names unless invited to do so;

• Germans value privacy. Thus, questions about family, personal life, and other personal matters should be avoided in business meetings. It is safer to stick to business topics. Also, Germans use formal greetings;

• German companies put high premium to highly-valued and esteemed customers;

• German companies are renowned for being engineering-driven;

• Germans take time to give lengthy background explanation to queries with many references to past history;

• German abhor boasting. They dislike overstatement. They prefer simple, short and concise statements and they avoid the emotional aspect of business;

• Embarrassing political questions relating to the Second World War or anti-semitism should not be brought out during a business conversation with Germans. A safe and good topic for conversation is about sports;

• Education is highly respected and placing any title in the calling card is welcomed;

• Handshake is the most popular form of greeting. When introduced to a German lady, it would be best to see if she extends her hand before offering to shake;

• Germans do not usually entertain business associates in their home. It is a great honor if a businessman is invited to a German home;

• Germany produces some of the finest beer in the world;

• There are many Asian shops in Germany providing vast opportunities for our Philippine products to be showcased and sold in Germany by coursing the goods through the Asian shops.

Here are other interesting information about Germany particularly Hamburg, one of the richest city states of Germany with a population of about 4.3 million.

• There are many Filipinos working with Blohm and Voss, one of the biggest shipbuilder/repair companies based in Hamburg. This company operates on a 24-hour schedule basis;

• The Port of Hamburg is one of the biggest inland ports in Europe that is second only to the Port of Rotterdam in terms of traffic;

• About 60% of the millionaires in Germany are based in Hamburg;

• About 5,000 of the 70,000 Filipinos in Germany are working in Hamburg;

• The German economy is the world’s third largest and accounts for about one-third of Euroland’s GDP;

• Germany is the Philippines’ second largest European trading partner and our ninth largest global partner.

Germany’s attractiveness as a trading partner and an investment location cannot be denied. However, Filipinos who would like to do business with German entities should do their homework thoroughly and make sure they know not only the German business laws and product standards – but more important they should know the cultural peculiarities of the German people.

Have a joyful day!

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