For a perfect foothold in the German market – head straight for Bavaria

That’s why many Irish companies seeking to export to Germany are increasingly looking to Munich and Bavaria as a suitable foothold.

Germany is a thriving market for Irish businesses – exports there by Irish-owned companies supported by Enterprise Ireland rose by 32pc in 2022. In order to continue to support Irish companies entering and scaling in the German market, Enterprise Ireland opened an office in the Bavarian capital of Munich, to complement its existing office in Dusseldorf.

Home to 13 million people and a host of globally recognised firms such as Allianz, Audi and BMW, Bavaria is Germany’s second-largest state.

For Irish entrepreneurs interested in exporting opportunities in Germany, Bavaria is an excellent first step within the market, particularly for those in the agriculture, automotive, electronics and financial services sectors.

These industries are serviced and supported by sub-supply via the formidable German “Mittelstand” (enterprises in Germany, Austria and Switzerland that have been successful in surviving economic change and turbulence) as well as newer innovation hubs and VC firms constantly on the look out for the next big technology.

Among the Irish companies already seeing significant success in the south of Germany are in-vehicle connectivity specialists Cubic Telecom, who sell into the automotive industry.

Mobility specialists Zeus recently partnered with Siemens in Regensburg, Bavaria to develop renewable energy charging points for e-scooters, known as Zolar stations.

In terms of doing business in the region, it is important to be direct, clear and straight-talking

Bavaria and Ireland have plenty in common. Once almost entirely rural and agricultural, both have seen economic growth in recent decades, are home to many high-tech companies and have well-qualified workforces.

Irish businesses are highly thought of in the region, with Irish people seen as friendly and relaxed.

There is also a significant Irish diaspora, particularly around the Munich region which is long-established and highly-integrated into Bavarian society, but still proud of their Irish roots and eager to support Irish people and businesses.

Other good news for innovative Irish companies is that Germans and Bavarians in particular are always open to new technologies and are typically loyal customers. If you have an innovative technology that can bring value to their product and service, they will consider it.

In terms of doing business in the region, it is important to be direct, clear and straight-talking, as this is vital to local business culture.

Get professional advice too before doing business in the region, so you’re aware of any relevant local regulations, which can be plentiful. And Enterprise Ireland can help with that.

If you are interested in exploring exporting opportunities in Bavaria and Germany, you can contact our team at Philip.Kavanagh@enterprise-ireland.com

Dr Philip Kavanagh is senior market adviser – automotive, e-mobility, electronics & aerospace, EI Munich