CHINA
Mr Wang, what comes to mind today when people in China read “made in Germany”? And what do you personally associate with this “brand”?
“Made in Germany” has an excellent reputation in China. It stands for quality, state-of-the-art technology and reliability – but also for a high price.
Is the country of origin of goods and services still relevant in a globalized world?
I think so, yes. People have more confidence in goods and services from Germany, for example, than from many other countries.
Now for a personal question: what is your favourite product from Germany?
Cars. Unfortunately, when buying my first car a few years ago, I had to buy French brand for financial reasons. But my second car will have to be a German one!
China is Germany's most important trading partner in Asia, and Germany is China's most important European trading partner. What new trends and tendencies are you seeing in your job?
German companies used to come to China to invest. That could change in the future. More and more Chinese firms are showing an interest in investing in Germany. And the Chinese companies are not only interested in the products, but also in technology from Germany.
Yang Wang, a former German Chancellor Fellow, is Deputy Managing Director of the Investment Promotion Department of the Xiangtan Hi-tech Zone and representative of the Hesse Ministry of Economics in Hunan province.
USA
Mr Irwin, what comes to mind today when people in the USA read “made in Germany”? And what do you personally associate with this “brand”?
In the USA the label “made in Germany” is seen as a sign of excellent quality. Although the price may be a little higher, Americans associate it with a hallmark of excellence, a high standard, innovative products that deliver what they promise.
Is the country of origin of goods and services still relevant in a globalized world?
I believe it depends on the product. In general you can say that products are becoming increasingly interchangeable. In the case of less specialized goods like textiles or agricultural goods, the country where a product comes from is gradually becoming irrelevant. Many brands are positioned as global brands in our globalized world. Consumers often don't even know where a product comes from. As a result the country of origin or the company that made the product is often of little, if any importance. Consumers usually buy a brand because they like the values it represents. You buy the brand of car that promises the lifestyle that appeals to you. But when it comes to machines and industrial goods in particular, German products traditionally stand for very good quality and are very popular worldwide.
Now for a personal question: what is your favourite product from Germany?
I don't have a “favourite product”. There are many products from Germany I like, and sometimes my preferences change. But coming back to cars: technically speaking, most cars are becoming more and more similar, so brand products have to use other aspects than pure technology to set themselves apart. Even so, I'm convinced that strong products that are clearly positioned will remain strong products in the future.
Are Germany's exports too dependent on the euro/dollar exchange rate?
The USA is the biggest market for German products outside the European Union and the most important recipient of German direct investment. Germany exports an above-average proportion of high-tech goods such as luxury cars and highly specialized machinery. A low euro exchange rate benefits such products, too, but not as much as products that are produced in many places, i.e. where the price is the main factor. So the weak euro might make life a little easier because products that are “made in Germany” will be cheaper in world trade. On the other hand, a low euro exchange rate makes purchases on the important US market more expensive.
Fred B. Irwin is President of the American Chamber of Commerce in Germany, the oldest bilateral trade organization in Germany, which promotes economic relations between the two countries. It has about 3,000 members.
ARAB WORLD
Mr Al-Mikhlafi, what comes to mind today when people in the Arab world read “made in Germany”? And what do you personally associate with this “brand”?
In the Arab countries “made in Germany” means high quality and reliability. We're willing to pay a higher price for products from Germany because we know we'll be getting quality. It's said that if you buy cheap, you buy twice. In the Arab countries, we know this is not true of German products. However, it must also be said that products from other regions are also well represented in the Arab countries. Products not only from Japan or Korea, but also from China and other emerging economies are doing well. It follows that you need to show your presence on the spot and build up collaborations. This applies to both trade and investment.
Is the country of origin of goods and services still relevant in a globalized world?
It does in the case of quality products. Company names like Daimler and Siemens are synonymous with Germany and with quality. And if customers want to buy top quality, the name and origin of the product are important criteria for their decision. But this doesn't only apply to the big names. Germany is also known for its small and medium-sized enterprises, which are also highly innovative and deliver carefully designed and manufactured products – in mechanical and automotive engineering, environmental technology, medical engineering and biotechnology, and the technology of alternative energies, to name but a few.
Now for a personal question: what is your favourite product from Germany?
I've been driving a Mercedes for over 20 years. But I have more connections with Germany than that. I did my second university degree in Germany, have been working in Germany for 17 years and am very happy to live here with my family.
How do you assess the current state of economic relations between Germany and the Arab world? And which sectors do you think are likely to have the rosiest future?
German-Arab economic relations can be described as excellent. Nothing exemplifies this more clearly than the figures on German exports to the Arab world during the crisis year of 2009. Compared to the previous year, German exports fell by 18.4 percent worldwide, but only by 13.4 percent in the Arab countries. Furthermore, the Arab countries are increasingly engaging in strategic partnerships with German companies, which is a clear vote of confidence. Examples include Qatar's holding in Volkswagen, or Kuwait's and Abu Dhabi's stake in Daimler AG. Abu Dhabi has also bought shares in the Dresden-based semiconductor manufacturer Globalfoundries and a (majority) stake both in Ferrostaal AG and in the shipyards Nobiskrug and Blohm + Voss.
Relations on the level of economic politics, too, can only be described as very good. The Federal Chancellor visited the Arab Gulf states in May; the Federal Foreign Minister was also there in January and visited four Arab Middle Eastern countries in May. Hardly any other region in the world has had so many high-level visits from Germany in 2010. Conversely, many high-ranking Arab politicians have visited Germany this year and also met business representatives: the most recent visitor was the Emir of Kuwait, who spoke with senior company representatives at the invitation of Ghorfa and invited German industry to get more involved in his country.
Abdulaziz Al-Mikhlafi, a diplomat with the rank of ambassador, comes from Yemen. Since 2000 he has been Secretary General of Ghorfa, the Arab-German Chamber of Commerce and Industry, which links up with networks in 22 Arab countries and helps German businesses to gain a foothold in the Arab market.
JAPAN
Mr Hitara what comes to mind today when people in Japan read “made in Germany”? And what do you personally associate with this “brand”?
German products are very much marked by a certain “philosophy”. Manufacturers are convinced of their idea, they're really taken with it; they pursue it and want to implement it. As a result they sometimes seem to want to impose something on the customer. But conversely, this “product philosophy” can also be very attractive to customers. Many Japanese people feel it's also important for a product to be durable and for the price to correspond with its value – even if you have to spend a lot of money on it. Many Japanese associate the “made in Germany” label with the good image of well-known German car brands.
Is the country of origin of goods and services still relevant in a globalized world?
Quality control is more difficult abroad than at home. The Japanese company Toyota has recently become very aware of this problem. Toyota was forced to launch a major recall action in the USA. In Japan, many people believe that moving production abroad has a negative impact on quality control. In this case, however, I think it's more likely that there were problems with quality management within the company. A company that spreads its technology worldwide should also have a quality-management system that functions well internationally.
Now for a personal question: what is your favourite product from Germany?
I have German-brand knives and mountain-climbing equipment. My car also has Bosch accessories.
Japan and Germany are high-technology countries. Which areas is each country strongest in?
German products are characterized by a strong corporate philosophy and original technology – and by a certain self-confidence. Japanese products place more emphasis on what practical benefits they have and whether they are interesting – we are more customer-oriented. Both countries market good products, but they differ in their business thinking.
Ikuo Hitara is chief reporter for Nikkei, the leading Japanese business newspaper.
NETHERLANDS
Mr de Graaf, what comes to mind today when people in the Netherlands read “made in Germany”? And what do you personally associate with this “brand”?
Reliability, solidity, quality, thoroughness and products that are well thought through, right down to the last detail.
Is the country of origin of goods and services still relevant in a globalized world?
Definitely less than it used to be. However, for me “made in Germany” remains an emphatic recommendation for a place where high-quality goods are produced.
Now for a personal question: what is your favourite product from Germany?
All things “automotive”. And I'm sure I'm not the only one either, especially when you see how much the quality brands are now benefiting from rising exports to Asia and other regions.
The Netherlands is Germany's most important import trading partner, beating the People's Republic of China into second place. Will the country be able to defend this lead in the future?
I think so, yes. The geographical proximity, good connections by land and water, and years of good relations all make a contribution. The Netherlands is an important partner for Germany in oil, gas and sustainable energy, but also in such industries as chemicals, foodstuffs and auto components. These close-knit structures have grown over many years, so that each country now has great confidence in the other's goods and services. The two business cultures are similar, and we even get on well in football in the meantime! I believe the Netherlands will remain Germany's number-one partner in the long term – and vice versa!
Willem de Graaf maintains close relations with Germany. He is CEO of voestalpine Plastics Solutions, a division of voestalpine Polynorm Group. The Dutch group is one of the leading suppliers of components to the automotive industry and also runs a production and development centre in Germany. This global company specializes in the development and production of body components.
