BERLIN: Companies in Germany generate almost €900bn from branded goods and services a year, a figure that could rise further as shoppers place a heightened emphasis on product safety and quality.
McKinsey, the consultancy, and Markenverband, the trade body, reported that firms headquartered in the country yielded €894bn each year from branded products.
This amount is equivalent to 80% of Germany's total exports or the combined annual revenues delivered by the country's retail, transport, hospitality, information and communications industries.
Manufacturers of branded goods claimed €457bn per year, with financial services on €177bn, transport and telecoms providers on €134bn, energy suppliers on €98bn, and the publishing, film and radio sectors on €28bn.
Based on a survey of senior executives, the analysis also revealed that 78% of domestic corporations had only been "somewhat" affected by the economic crisis or not impacted at all.
The finding that 84% of organisations had made limited or no cutbacks to their communications spending was said to have favourably shaped this trend, an argument equally applicable to the decision of 93% to follow the same route for innovation.
Moreover, 61% of featured companies stated they had resisted lowering their prices even though the fiscal climate had become increasingly challenging.
Indeed, 52% of respondents agreed that price now held a more central role in the purchase process, measured against 54% in an equivalent study from 2008 and 46% in 2006.
Looking forward, however, just 5% of enterprises expected to prioritise this area in their future communications, versus 34% giving it a "low" level of importance and 61% not planning to mention it.
By contrast, in 2008, a more modest 48% of operators ignored the matter altogether, whereas 11% gave it an integral position in their marketing messages and 41% afforded it at least some importance.
A separate poll of consumers found 68% believed product safety and security would soon gain greater importance in shaping their habits, with trust and responsibility receiving 50% apiece on this metric.
Innovation posted 43% here, beating values like "solidarity" on 40%, "power" on 33%, "luxury" on 23% and "adventure" on 22%.
"The new customer desire for security is advantageous for brands – after all, quality is one of the key arguments for purchasing these products," the study concluded.
Data sourced from McKinsey; additional content by Warc staff