website globalization and e business germany

The Website Globalization and E-Business paper was researched and written by:

Martin Spethman Managing Partner Globalization Partners International [email protected] 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. [email protected] Phone: 314-977-7604

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:

• China• Japan• Germany• US Hispanic Market• Brazil• India

• Russia• Argentina• France• United Kingdom• United Arab Emirates

Globalization Partners International helps companies communicate and conduct business in any language and in any locale by providing an array of globalization services including:

• Translation• Multilingual Desktop Publishing• Software Internationalization & Localization• Website Internationalization & Localization• Software and Website Testing• Interpretation (Telephonic, Consecutive, Simultaneous)• Globalization Consulting• SEO (Global Search Engine Marketing)

To learn more about Globalization Partners International, please visit us at blog.globalizationpartners.com.

Website Globalization and E-Business Germany

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 [email protected].

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.

© Copyright 2008 - 2014 Globalization Partners International. All rights reserved. ® All Trademarks are the property of their respective owners. All graphics used in this report were provided by Flickr, Google Images and other free internet resources for pictures.

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LGermany has the largest and most powerful national economy in Europe and the fourth largest by nominal GDP in the world. (Worldbank.org).

LGermany 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)

LGermany 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)

LAccording 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).

LAccording to a Forrester report, German consumers prefer to pay for online transactions with an electronic direct debit rather than with credit card.

L In 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)

LDuring 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)

Fast Facts Numbers

General Stats GDP $3.593 trillion (Imf.org 2013)

Economy Growth Rate 0.7% (Worldbank 2012)

Population 80.5 million (2013 est.)

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

Online Spending $68 billion (Internetretailing.net 2012)

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

I. Market Introduction and Stats

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

Europe 24,3 Billion

France

UK

Netherlands

Germany

Italy

2,770

6,642

1,207

4,551

1,418

Source: The European Interactive AdvertisingAssociation (www.eiaa.net)


hppt://www.eiaa.net


II. German Culture and the Online Consumer

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:

L Loyalty: German consumers usually are inclined to buy from German online retailers.

LPrivacy 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.

LGender 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.

LPayment 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.

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.

• 75.5% of German online shoppers do not like unknown payment methods.

• 75.2% of German online shoppers will not proceed with their purchase, if there is no security information posted.

(Source: Postbank Study www.postbank.com)



II. Germany Culture and the Online Consumer

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 socio-demographics, 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.

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 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 English Cognate 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 Kraut cabbage

German Language Statistics

Ì German developed as a specific language sometime late in the 19th century

Ì The most widely spoken language in the European Union is German

Ì The top five mostly widely used languages on the internet includes German

Ì 25% of tourists in the U.S.A. are German-speaking

Ì At 22% of the population, German-Americans represent the largest ethnic group in the U.S.A.

Ì Germany has a 99% literacy rate Ì German dialects with a substantial difference in grammar and pronunciation from standard German are found in regions of Germany, eastern France, Switzerland and Liechtenstein

Ì The German spelling reform of 1996 was officially accepted by the governments of Germany, Switzerland, Austria and Liechtenstein www.germanlanguageguide.com

III. The German Language


http://www.wikipedia.org

http://www.wikipedia.org


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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Masculinity - Femininity Index

Masculinity - Femininity vs. Uncertainty Avoidance

Arab World Argen�na Australia Austria BrazilCanada Chile China Colombia Costa RicaCzech Republic Czech Republic Denmark East Africa EcuadorEl Salvador Finland France Germany GreeceGuatemala Hong Kong Hungary India IndonesiaIran Ireland Israel Italy JamaicaJapan Malaysia Me�ico �eth erlands �e � �ealand�o r�ay �akistan �anama �eru �hilippines�oland �ortugal Russia Singapore South AfricaSouth Korea Spain S� eden S� itzerland �ai� an�hailand �urkey ��S� Hispanic Market �n ited Arab Emirates �n ited Kingdom�n ited States �rugua y �enezuela West Africa

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Power Distance Index

Power Distance vs. Individualism - Collec�vism

Arab World Argen�na Australia Austria BelgiumBrazil Canada Chile China ColombiaColombia Costa Rica Czech Republic Denmark East AfricaEl Salvador Finland France Germany GuatemalaHungary Hong Kong India Indonesia IrelandIran Israel Italy Jamaica JapanMalaysia Me�ico �eth erlands �e � �ealand �o r�ay�akistan �anama �eru �hilippines �oland�ortugal Russia Singapore South Africa South KoreaSpain S� eden S� itzerland �ai� an �urkey��S� Hispanic Market �n ited Arab Emirates �n ited Kingdom �n ited States �rugua y�enezuela West Africa

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)

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:

V. German Cultural Correctness and Web Customization

Ì Germany Ì Germany

Cultural Maps for Germany



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 [email protected])

The Cultural Customization Scorecard™ - Germany

Values Individualism Collectivism Uncertainty Avoidance

Power Distance

Masculinity Low Context

High Context

Cultural Scores

Cultural Customization (Examples)

Â Individualism: This value implies that a culture is centered on the “I-consciousness”. The focus of the website should be on self-reliance, 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.

Â High 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.


Grading Scale:

> 90% Excellent Customization on Cultural Value

70-89% Good Customization on Cultural Value

< 70% Poor Customization on Cultural Value



Â Masculinity: 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.”

Â Uncertainty 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.

Â Low 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.




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:

LWhoever harms or kills a cat shall meet with great misfortune.

LA small child will not grow properly if you call it a little worm or a dummy.

LHe who walks between two old women early in the morning shall have only bad luck the rest of the day.

LAnimals: 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.




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:

LUsing 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. L Tables and graphics may need to be resized or changed. Some, like the vertical Chinese or Japanese layout, will require more finessing than others.



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.

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%)

VI. Internet and Search Engine Marketing in Germany

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

Ì German 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.

Ì The local German search engines favor sites that are in German, hosted in Germany and have the .de in the URL.

Ì Developing 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.

Ì Make 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.

Ì Consider partnering with a good German SEO firm.

References available upon request.

Source: statcounter.com



References available upon request.

Source: statcounter.com

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.

Key Insights from the Digital Landscape for Germany:

LSocial 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)

LAccording 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.

LNearly 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%)

VII. Social Media and Digital Marketing for Germany

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


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Search Engines

Resources

ßAbocho www.abacho.de ßAllesklar.de www.allesklar.de ßAcoon www.acoon.de/ ß Freenet suche.freenet.de ßGoogle www.google.de/

ß Lycos www.lycos.de/suche/seite_anmelden.html ßBing www.bing.de ßWitch witch.de ßYahoo! Deutschland de.yahoo.com ßBalloon www.balloon.org

ßBellnet www.bellnet.com/suchen.htm ßGerman Business www.german-business.de ßHamburg Web www.hamburg-web.de

Useful Links

Acrobat may ask you for permission to open the links. Click on the “Allow” button to let Acrobat open the link in your browser

ßWikipedia.org en.wikipedia.org/wiki/Internationalized_domain_name ßGerman Culture.com www.germanculture.com.ua/library/weekly/aa022699.htm ß TLK German Culture: Keeping up Traditions www.tlc.kherson.ua/~alex/germantraditions.htm

ßSuperstitions from Europe www.pitt.edu/~dash/superstition.html ßCommon German and English Superstitions www.unsolvedmysteries.com/usm411962.html ß Forrester Reserach www.forrester.com ß Internetnews.com www.Internetnews.com/stats

ßBudde.com www.budde.com.au ß Pago https://www.pago.de/ ßNeilsen Netratings www.nielsen-netratings.com ßCIA Worldfactbook www.cia.gov


http://suche.freenet.de

http://search.msn.de

http://search.msn.de

http://de.yahoo.com

http://en.wikipedia.org/wiki/Internationalized_domain_name

http://en.wikipedia.org/wiki/Internationalized_domain_name