Website Globalization And E Business Germany

Globalization Partners International White Paper | 2014

Website Globalization and
E-Business Germany
The Website Globalization and E-Business Series includes a series of brief reports on country-specific
website globalization and e-business topics. The series includes:
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China
Japan
Germany
US Hispanic Market
Brazil
India

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Russia
Argentina
France
United Kingdom
United Arab Emirates

This series of reports is meant to be a primer on e-Business as well as a collection of language, culture
and website globalization facts by country. These reports are by no means a complete coverage of
these topics. For more comprehensive or customized reports on country-specific Website Globalization
and E-Business topics, please email mspethman@globalizationpartners.com.
No material contained in this report may be reproduced in whole or in part without prior written
permission of Globalization Partners International. The information contained in this White Paper has
been obtained from sources we believe to be reliable, but neither its completeness nor accuracy can
be guaranteed.

The Website Globalization and E-Business paper
was researched and written by:
Martin Spethman
Managing Partner
Globalization Partners International
mspethman@globalizationpartners.com
Phone: 866-272-5874
Nitish Singh, PhD,
Author of “The Culturally Customized Website”,
“Localization Strategies for Global E-Business”,
and Assistant Professor of International Business,
Boeing Institute of International Business, John
Cook School of Business, Saint Louis University.
singhn2@slu.edu
Phone: 314-977-7604
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To learn more about Globalization Partners International, please visit us at blog.globalizationpartners.com.
Website Globalization and E-Business | Germany

www.globalizationpartners.com

I.

Market Introduction and Stats

Country

The value of the European
online ad market 2012 (€m)

Europe

UK

6,642

Netherlands

1,207

Germany

4,551

Italy

1,418

Source: The European Interactive Advertising
Association (www.eiaa.net)

$3.593 trillion (Imf.org 2013)
0.7% (Worldbank 2012)
80.5 million (2013 est.)

Internet Population

Approx 68 million, 84% of total population
(Wikipedia 2012)

Online Spending

$68 billion (Internetretailing.net 2012)

Future Estimates

Internet

GDP

Population

2,770

Numbers

Economy Growth Rate

General Stats

24,3 Billion

France

Fast Facts

Digital buyers is projected to exceed 46 million
in 2016 (gtai.de)

LLGermany has the largest and most powerful national economy in Europe and the fourth largest by
nominal GDP in the world. (Worldbank.org).
LLGermany has the fifth-largest economy by purchasing power parity. As a global leader in several
industrial and technological sectors, it is the second-largest exporter and third-largest importer of
goods. (Wikipedia)
LLGermany has the largest online population in the European Union. The German online population
has grown steadily from 29.2% of the total population in 2000 to 84% of the total population in
2012. (Wikipedia)
LLAccording to the “Association of the German Internet Industry”, more than half (53%) of German
GDP generated in 2017 will be e-commerce related (compared to 37% in 2012).
LLAccording to a Forrester report, German consumers prefer to pay for online transactions with an
electronic direct debit rather than with credit card.
LLIn 2012 European ecommerce – including sale values of online retail goods and services such as
travel bookings, ticketed events and downloads – grew by 19% to €311.6bn. The EU comprised
88.7% of that total, or €276.5bn. (Internetretailing.net)
LLDuring 2012 Europe’s strength in ecommerce continued to be dominated by the UK (€96bn in sales),
Germany (€50bn) and France (€45bn). Between them these three markets account for 61% of
Europe’s total share of sales. (Internetretailing.net)

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II.

German Culture and the Online Consumer
Cultural Values

Individualism: Cultures like Germany that are high on
individualism tend to value individual goals over group
goals, independence and self-expression.
Power Distance: A belief in authority and hierarchy
(high power distance). Cultures like Germany that are
high on power distance accept power and hierarchy
in the society and are low on egalitarianism. In such
cultures, less powerful citizens are accepting of
unequal power distribution in society.
Masculinity – Femininity: A belief in achievement
and ambition (masculine) versus a belief in nurturing
and caring for others (feminine). Masculine cultures
like Germany value clear gender roles, material
possessions and success.
Low Context: Low context cultures are societies
that are logical, linear and action-oriented. Usually
information is explicit and formalized. Most of the
communication takes place in a rational, verbal and
explicit way to convey concrete meaning through
rationality and language.
Uncertainty Avoidance: The importance of
predictability, structure and order (high uncertainty
avoidance) versus the willingness for risk-taking and
an acceptance of ambiguity and limited structure (low
uncertainty avoidance). People from cultures high on
uncertainty avoidance tend to have low tolerance for
uncertainty and avoid ambiguous situations. They
view conflict and competition as threatening and value
security over adventure and risk.

The German Online Consumer
Source

Online Activities

Familiarity

Go straight to price comparison
portals
• 42.3% of non-frequent
shoppers
• 56.6% of frequent shoppers
Go straight to search engines
• 60.8% of non-frequent
shoppers
• 72.4% of frequent shoppers
(Forrester Research, 2009)

Security
(Information
from Postbank
Study on
Consumer
Satisfaction)

• 77.3% of German online
shoppers have security
concerns about retailers
with whom they have never
conducted business.
shoppers do not like unknown
payment methods.
shoppers will not proceed with
their purchase, if there is no
security information posted.

German Culture and Values
Germany is a Western society that shares some
of the common symbols and traditions of other
Western cultures, yet it has its own unique
and rich culture. At a macro-level the German
culture can be described using five cultural
values based on the work of Hofstede (1980).
Professor Geert Hofstede conducted perhaps
the most comprehensive study of how values in
the workplace are influenced by culture and is
the author of several books including “Culture’s
Consequences” (2nd, fully revised edition, 2001), and “Cultures and Organizations, Software of the
Mind” (2nd fully revised edition 2005).
Hofstede demonstrated that there are national and regional cultural groupings that affect the behavior
of societies and organizations that are very persistent across time. Hofstede’s research also showed
that cultural values like Individualism-Collectivism, Power Distance, Masculinity-Femininity,
High-Low Context and Uncertainty Avoidance can be used to categorize various national
cultures.
A country’s culture is made unique based upon which of the five values are incorporated into daily life
and the emphasis it puts on each. For example, Germany rates significantly on all five values.

Insights into German Consumer Values:
LLLoyalty: German consumers usually are inclined to buy from German online retailers.
LLPrivacy and Security: Based on a study completed by Postbank, 77.3% of German e-shoppers
have security concerns when purchasing from a new retailer (not used before). In addition, 77.5%
of consumers are concerned about unknown payment methods. If no security advice is provided,
75.2% of German shoppers will not proceed with the transaction.
LLGender Differences: In 2005, a Postbank report found that the busiest online shopping month for
German male consumers was February, whereas it was September for German female consumers.
LLPayment Options: German consumers prefer to pay for online transactions with an electronic
direct debit rather than with credit card. 60% of all online purchases are paid for with direct debit.

(Source: Postbank Study www.postbank.com)

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II.

Germany Culture and the Online Consumer

Three primary platforms used by online
German consumers:
Online German in German

81.5%

Online auctions

67.5%

International Online Shops

22.3%

(Postbank Study: Consumer satisfaction with online
retail increases www.postbank.com/)

German Consumer Decision Making:
Below are some insights into the German consumer mindset based on theoretical and applied research
in academia (Walsh et al, 2001; Fan and Xiao, 1998; Singh et al, 2004, 2005):
””Familiarity: Based on a study conducted by PostBank, nearly three-quarters of online shoppers
visit retailers with whom they have a purchasing history. The shoppers go directly to the
homepages of these businesses.
””Security: Germans primarily shop online from trusted brands. The first time these consumers visit
a site they actively look for a security policy or advice.
””Time: Germans tend to be very time sensitive and operate in time-energy conserving mode.
Purchasing Behavior: German consumers make nearly one-quarter of all purchases during the
business lunch break from noon to 2 PM.
””Gender-and-Age Difference: German men as well as the younger age groups are significantly
more likely to use online auction sites.

German Consumer Segments:
Market segmentation identifies profitable consumer segments based on themes such as sociodemographics, geographics and psychographics.
Germany’s demographic make up can be generalized into the following categories:
€€Factual German Consumers: This consumer segment has a knack for finding factual information
and value-orientation. Perfectionism is highly rated by this group when making decisions. These
German consumers are prepared to make an effort to find the right, high-quality product.
€€Demanding Comparison Shopper: These consumers switch brands on a regular basis, looking
for the best value, which is not always price related.
€€Impulsive Consumers: This segment tends to be indifferent to brand, shopping experience and
product differences. Consumers in this group tend to make purchases based on impulse decisions.
€€Hedonistic German Consumers: These consumers tend to be driven by emotions and confusion
based on “too many choices”.
€€Shopping Enthusiasts: These are consumers who are interested in shopping for new products
and experiences.

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III. The German Language
German Language Statistics
ÌÌGerman developed as a specific language
sometime late in the 19th century
ÌÌThe most widely spoken language in the
European Union is German
ÌÌThe top five mostly widely used
languages on the internet includes
German
ÌÌ25% of tourists in the U.S.A. are
German-speaking
ÌÌAt 22% of the population, GermanAmericans represent the largest ethnic
group in the U.S.A.
ÌÌGermany has a 99% literacy rate
ÌÌGerman dialects with a substantial
difference in grammar and pronunciation
from standard German are found in
regions of Germany, eastern France,
Switzerland and Liechtenstein
ÌÌThe German spelling reform of 1996 was
officially accepted by the governments
of Germany, Switzerland, Austria and
Liechtenstein
www.germanlanguageguide.com

German is a West Germanic language and a member of the Indo-European language family, related to
Danish, Norwegian and Swedish, Dutch, as well as to English. It is spoken by more than 120 million
people worldwide in 38 countries. (Wikipedia.org). The primary countries in which German is spoken
are Germany, Austria, Switzerland, Liechtenstein, Luxembourg, South Tyrol province of Italy and parts
of Belgium.

German is written using the Latin alphabet. In addition to the 26 standard letters, German also uses
diacritics or marks placed above characters like o and a, which are used to stress a syllable or alter
its pronunciation. (Yunker, 2003). All diacritics are included in the ISO 8859-1 and Windows 1252
character sets.
German has three vowels with Umlaut, ä, ö, and
ü. In addition, German uses the Eszett or scharfes
S (sharp “s”) ß. (Wikipedia.org)
Some English words have been taken directly
from the German language without any spelling
changes at all. Some of these words include
(Wikipedia.org):
German Word

Meaning of German Word

Abseilen

abseilen

to rope down

Angst

Angst

fear / angst

Automat

Automat

automation / machine / automat

Doppelgänger

Doppelgänger

spectral look-alike of somebody

Kindergarten

Kindergarten

playschool

Rucksack

Rucksack

backpack

Wanderlust

Wanderlust

desire, pleasure, or inclination to travel, or walk

Kraut

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English Cognate

Kraut

cabbage



IV. Website Globalization
Whether you are trying to launch a multilingual website in order to expand the markets for your
products and services, or you are trying to increase your company’s global operational efficiencies by
developing multilingual extranets and intranets, Website Globalization is a requirement to make either
a reality. In order to enable your web presence to communicate, conduct and complete international
e-Business, you need to translate (globalize) your website.
Website translation is also known as “Website Globalization”. In order to truly “translate” a website
into other languages you may need both Internationalization (I18n) and Localization (L10n) services.

+
Internationalization (I18n) involves enabling the backend of a website to handle different
languages, character sets, currencies, submit form data, site search capabilities, etc… and involves
understanding what database and content management systems you are using to author, store and
publish your site’s content.
Localization (L10n) involves translating and localizing the front end of your website into different
languages ensuring all content (text and graphics) is translated in an accurate and culturally correct
manner.

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V.

German Cultural Correctness
and Web Customization
Cultural Customization: Key Issues
The basis for cultural customization of websites is a theoretically-sound, empirically-validated
framework built on five unique cultural values that account for similarities and differences across
global cultures. Research studies indicate that attitude towards websites, interactivity and
usability of websites, as well as purchase intentions at websites are enhanced when
sites are congruent with the target customers’ cultural predispositions. (See The Culturally
Customized Website, Elsevier, 2005)
The cultural customization framework is drawn from established research and is based on five unique
values: Individualism-Collectivism, Power Distance, Uncertainty Avoidance, Masculinity-Femininity,
and Low-High Context. (See page 3 of this report)
These five predominant country cultural values can be represented in comparison to other countries
using the maps below:
Masculinity - Femininity vs. Uncertainty Avoidance

Power Distance vs. Individualism - CollecƟvism
100

100

Individualism - CollecƟvism Index

Uncertainty Avoidance Index

ÌÌGermany

50

Masculinity - Femininity Index

0
0
Arab World
Canada
Czech Republic
El Salvador
Guatemala
Iran
Japan
o r ay
oland
South Korea
hailand
n ited States

50
ArgenƟna
Chile
Czech Republic
Finland
Hong Kong
Ireland
Malaysia
akistan
ortugal
Spain
urkey
rugua y

Australia
China
Denmark
France
Hungary
Israel
Me ico
anama
Russia
S eden
S Hispanic Market
enezuela

100
Austria
Colombia
East Africa
Germany
India
Italy
eth erlands
eru
Singapore
S itzerland
n ited Arab Emirates
West Africa

Brazil
Costa Rica
Ecuador
Greece
Indonesia
Jamaica
e
ealand
hilippines
South Africa
ai an
n ited Kingdom

ÌÌGermany

50

Power Distance Index

0
0
Arab World
Brazil
Colombia
El Salvador
Hungary
Iran
Malaysia
akistan
ortugal
Spain
S Hispanic Market
enezuela

50
ArgenƟna
Canada
Costa Rica
Finland
Hong Kong
Israel
Me ico
anama
Russia
S eden
n ited Arab Emirates
West Africa

Australia
Chile
Czech Republic
France
India
Italy
eth erlands
eru
Singapore
S itzerland
n ited Kingdom

100
Austria
China
Denmark
Germany
Indonesia
Jamaica
e
ealand
hilippines
South Africa
ai an
n ited States

Belgium
Colombia
East Africa
Guatemala
Ireland
Japan
o r ay
oland
South Korea
urkey
rugua y

Cultural Maps for Germany

Tables and section based on the book, “The Culturally Customized Website: Customizing
Websites for the Global Marketplace” – by Nitish Singh and Arun Pereira. Cultural maps are
from Hofstede, Geert. Culture’s Consequences, Comparing Values, Behaviors, Institutions, and
Organization Across Nations Thousand Oaks, CA: Sage Publications, 2001)

7 of 14



V.


The Cultural Customization Scorecard
Once we have identified the country’s predominant cultural values using the cultural maps, the next step in customizing a website is to evaluate it on the
relevant cultural values. We do this in the form of the Cultural Customization Scorecard. The score card is produced by analyzing the features on the site
that conform to the cultural values of that market.
The cultural values of interest for the Germans are Collectivism, Masculinity, High Context, Power Distance and Uncertainty Avoidance. These are carefully
derived based on the cultural distinctions that are meaningful to the members of a given society. (For a detailed cultural analysis of your website please
contact mspethman@globalizationpartners.com)

The Cultural Customization Scorecard™ - Germany
Values

Individualism

Collectivism

Uncertainty
Avoidance

Power
Distance

Masculinity

Low
Context

High
Context

Cultural
Scores

Grading Scale:
> 90%

Excellent Customization on Cultural Value

70-89%

Good Customization on Cultural Value

< 70%

Poor Customization on Cultural Value

Cultural Customization (Examples)
ÂÂIndividualism: This value implies that a
culture is centered on the “I-consciousness”.
The focus of the website should be on selfreliance, achievement, independence and
individual freedom. Autonomy, competition,
and non-conformity are also cherished in
the German culture. Images used on the site
should reflect these characteristics. Moreover,
terminology should reinforce the theme of
independence. For example, in the Congster website the models show the fun and excitement of using the site. The website also has an asymmetrical
design which can be interpreted as non-conformist.
ÂÂHigh Power Distance: Sites can be customized
for this value by highlighting awards, the
company’s mission statement, corporate
values and recognition they have received. For
example, Deutsche Bank prominently displays
their awards by category.

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V.


ÂÂMasculinity: A website can be customized
for a masculine culture like Germany by using
text and design elements that emphasize
achievement, strength, material wealth
and success, or by highlighting a product’s
durability and its prominent or differentiating
features. The Deutsche Bank site stresses the
performance and reliability of its brand with
quotes like “Passion to Perform.”

ÂÂUncertainty Avoidance: There are several ways
to design a website for risk-adverse cultures
like Germany. Having a clear navigation and a
secured site for online transactions will help
to eliminate some uncertainty. In the sample
site to the right, the German text states, “Buy
without Risk”, “Many payment options”, “Free
returns” and “Data protection” as ways to
allay online buying fears.

ÂÂLow Context: Low context cultures favor
websites with symmetry and design that
is clean, concise and logical. The etracker
website is a good example of this type
of design. Content is displayed in logical
groupings, and it has a very clean, linear look.
Minimal colors are used.

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V.


Website Customization Considerations
Symbols and Icons
The German culture is centuries old and quite
diverse due to the varied and turbulent history
of the German-speaking communities. Because
it is so diverse, it is important to be aware
of sensitivities to avoid cultural blunders and
inadvertent use of offensive symbols (www.pitt.
edu/~dash/superstition.html#work).
Some examples:
LLWhoever harms or kills a cat shall meet with great misfortune.
LLA small child will not grow properly if you call it a little worm or a dummy.
LLHe who walks between two old women early in the morning shall have only bad luck the rest of
the day.
LLAnimals: If a stork builds its nest on your roof or chimney, you will live long and be wealthy. It is not good to kill spiders.

Colors
In Germany certain colors carry specific meaning
and symbolize aspects of their culture. (Yunker)
€€Blue: Considered the color of loyalty and
formality. For example, government letters are
traditionally mailed in blue envelopes.
€€Black: The color of grief, death,
hopelessness, as well as formality.
€€Green: The color of hope and conservation. A
good example of the use of green, is the name
of the German political party, “Die Grünen”
(The Greens). It was formed in the late 1970’s
by environmentalists and peace activists.
Mercedes-Benz has a clear, concise layout and logical navigational flow.

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V.


Spatial Orientation:
Spatial orientation refers to how web content is structured. According to Wendy Barber and Albert Badre, authors of “Culturability: The Merging of Culture
and Usability” (1998), spatial orientation has a direct effect on website usability because it affects visual perception. Manipulating the orientation can
change the user’s comfort level. What is user-friendly for one country may be vastly different for another. A German site will have similar spatial orientation
to an American site as their text are read left to right.

Text Length:
When translating a document or website, it is important to take into account how the length of the text will change after translation. There are a variety of
reasons why text expansion occurs. Equivalent phrases in a target language may have more characters or words than in English, and some cultures prefer
using a more formal style than other cultures, avoiding abbreviations, for example. Additionally, for both documents and websites both line and page breaks
may be different in the localized version than in the English version. Finally, the layout of the document or website itself may change depending on the
direction of the text. For example, Arabic is a bi-directional language and is read right-to-left, which will not only switch the layout of the text, but also the
graphics, the tool bars, the navigation bars, and the binding of the book, etc... Similarly, some languages like Chinese and Japanese can be displayed either
in left-to-right character rows or vertical character columns, and the choice influences how document elements such as graphics, figures, tables, call outs,
etc. are arranged in the final document or webpage.
There can either be text expansion or compression when a document or website is translated from English into a target language. For example, German can
expand up to 35% when translated from English. With document localization, there are several steps that can be taken to help preserve the integrity of the
look and feel “layout” of the document. These include:
LLUsing a larger font in the original language, if it is expected the language will expand during translation. This will help to develop a better feel for the
final size of the document and how the document elements will be laid out relative to the text. If the text is expected to shrink, use a slightly smaller font
for the same reasons.
LLTables and graphics may need to be resized or changed. Some, like the vertical Chinese or Japanese layout, will require more finessing than others.

11 of 14



VI. Internet and Search Engine Marketing

in Germany
The key to promoting a website internationally is
to create localized content and keywords, register
local domains and then promote through local
search engines, affiliate marketing, online and
offline branding and promotions.

It is recommended that firms plan on and conduct some
form of global search engine marketing (SEM) in order
to drive traffic to their new language sites.
This may include global search engine optimization of
your localized Web content, submission of pages to
key country (locale) search engines, and a pay-per-click
marketing campaigns through services like Google
Adwords or Overture.
For more information on Global SEM Services, see
www.globalizationpartners.com/SEM

Search Engine Marketing Tips
ÌÌGerman search engines look at both a
site’s IP address and top-level domains,
such as .de, .fr and others. It does not
matter where a site is hosted. If it has
a.de in the URL, it will be included in
search engines as a page from Germany.
ÌÌThe local German search engines favor
sites that are in German, hosted in
Germany and have the .de in the URL.
ÌÌDeveloping a site in German and using
a .de domain will ensure that it will
be seen by search engines, directories
and other sites as a new website. This
helps in obtaining additional listings in
local directories, as well as The Yahoo!
Directory which will further enhance your
SEO efforts.
ÌÌMake sure that the words used for SEO
are not only linguistically correct, but
also optimal the market. Using local
language talent to assist with this is
suggested.
ÌÌConsider partnering with a good German
SEO firm.

DENIC is the central registry for all domains
under the top level domain.de. In June 2006, they
processed the ten millionth application for .de domain, making it the second top tevel domain, after
.com to have ten million users which is a major hurdle. (www.denic.de)
The DENIC is also offering Internationalized Domain Names (IDN), which is a domain that can
potentially contain non-ASCII characters. The introduction of the IDN standard not only permits the
German umlaut or diacritic, but also a total of 92 additional characters that range from the French é to
the Danish Ø, which are now included in .de-domains. Unfortunately, the German ß is not included in
the IDN standard. (Wikipedia.org)

Top Search Engines in Germany
€€Google (94.71%)
€€Bing (1.81%)
€€Yahoo (1.09%)
€€Web.de (0.57%)
€€ Conduit (0.51%)
Source: statcounter.com

References available upon request.

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VII. Social Media and Digital Marketing

for Germany
With the growth of global communications and marketing you need to adapt your social media
communication to different cultural audiences and locales.
Since social media is influencing all online communications, it is no longer enough just to localize
your content. In today’s dynamic, social networking charged environment, you need to adapt your
communication to match your target audience in Germany to make sure that your message and intent
is successfully communicated.
It is recommended that firms plan on and conduct some
form of global social media localization in order to drive
traffic to their websites and social media profiles.
This may include global social media localization
of your content, social media optimization for local
networks, and advertising campaigns through services
like Facebook Advertising.
For more information on Global Social Media Services,
see www.globalizationpartners.com/SocialMedia

Key Insights from the Digital Landscape for Germany:
LLSocial media continues to be an increasingly popular activity for German mobile users. The number
of Germans accessing social networking sites via mobile at least once each month has increased by
27 percent over the year, from 14.9 million users in the three month average ending August 2012 to
nearly 19 million in August 2013. (Source: ComScore)
LLAccording to socialbakers.com, Germany had over 25.2 million Facebook users by 2013. The top 4
brands on Facebook by number of fans were Amazon.de, stylefruits, McDonald’s Deutschland and
Kinger Riegel.
LLNearly half (49.3 percent) of all German mobile social media users read posts from organisations/
brands in August 2013. (Source: ComScore)

Top Social Media Networks in Germany
€€Facebook (80.27%)
€€Youtube (4.75%)
€€Twitter (4.63%)
€€Pinterest (2.85%)
€€Reddit (2.42%)
Source: statcounter.com

References available upon request.

13 of 14



Resources
Search Engines
ßßAbocho
www.abacho.de
ßßAllesklar.de
www.allesklar.de
ßßAcoon
www.acoon.de/
ßßFreenet
suche.freenet.de
ßßGoogle
www.google.de/

ßßLycos
www.lycos.de/suche/seite_anmelden.html
ßßBing
www.bing.de
ßßWitch
witch.de
ßßYahoo! Deutschland
de.yahoo.com
ßßBalloon
www.balloon.org

ßßBellnet
www.bellnet.com/suchen.htm
ßßGerman Business
www.german-business.de
ßßHamburg Web
www.hamburg-web.de

ßßSuperstitions from Europe
www.pitt.edu/~dash/superstition.html
ßßCommon German and English Superstitions
www.unsolvedmysteries.com/usm411962.
html
ßßForrester Reserach
www.forrester.com
ßßInternetnews.com
www.Internetnews.com/stats

ßßBudde.com
www.budde.com.au
ßßPago
https://www.pago.de/
ßßNeilsen Netratings
www.nielsen-netratings.com
ßßCIA Worldfactbook
www.cia.gov

Useful Links
ßßWikipedia.org
en.wikipedia.org/wiki/
Internationalized_domain_name
ßßGerman Culture.com
www.germanculture.com.ua/library/weekly/
aa022699.htm
ßßTLK German Culture: Keeping up Traditions
www.tlc.kherson.ua/~alex/germantraditions.
htm

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