german distribution

“German large distribution seeks more coordination”

Germany is the main client of fruit and vegetable exports from the province of Almería, so it is interesting to know the point of view of German large-scale distribution companies regarding the fruit and vegetable supply in Almeria, so that the agri-food sector of Almería can know the needs of its international interlocutors and find the aspects in which it must improve to continue growing in competitiveness. According to Mike Mösch, founding partner of the German Institute for International Trade, “German companies have a very good image of Almería's offering: they know Almería very well, as well as its offering and its stakeholders.… Germany knows that Almería is the source of supply, therefore, all the strategies of these companies focus on attracting new suppliers, and, above all, new varieties.”

Mösch explains that the German consumer “gets tired of always finding the same products on the shelves”, so Large distribution always looks for an improved and broader offer. In this sense, the expert in international trade reports that “the Almeria product is good, but the companies in Almería put on the seal of suppliers, rather than collaborating companies: they try to supply quantities but they do not dress the product well with respect to international marketing: provide it with a brand, an introduction strategy and give the packaging a better presentationIn this sense, Mösch gives the example of China, where he comments that there are boxes of cherries arranged in the shape of an egg cup, in which each cherry has its individual space, and comments that this is the trend that is also occurring in Germany: "it is less of a product and more of a presentation of it, that enters through the eyes," he says, and asserts that "in this, Almería has to give it a twist and implement more marketing: dedicate more to the image of the product."

Regarding the way German companies work, the expert states that they “They work with supply chain programs, that is, supply chain, with studied purchases and a previous contract in which there is supply planning, something that, according to Mösch, represents a challenge for some Almeria marketers: "All this, for many companies, is like a corset that is difficult for them to comply with according to the plan, which seeks to ensure that the shelf is never empty. In that sense, we find a lack of understanding: German companies act in a planned manner, under strict legal and fiscal control of shipments."

Likewise, the founder of the German Institute of International Trade considers that the international trade success of Almería companies would be reinforced if “they had a collaborative strategy: we reach many small companies, but there is no coordination between them, since there is no group or consortia of companies, so each one does its own thing and a collaborative economy that is so needed is not built. This is like a house: you have to collaborate to make the house work. This doesn't just depend on one person, but it depends on everyone. You have to give up a right of decision to gain in expansion.” Therefore, according to Mösch, If this “collaborative strategy” existed, these companies would have greater bargaining power, supply capacity and would offer greater reliability. to the buyer, and for the German international trade expert, “the key is collaborate to add”.”
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