Sunday, January 16, 2011

Germany: Commerce

30 years ago in Berlin, KaDeWe (Kah, Day, Vay) was the ultimate shopping experience. Even its name spoke to its special status.  It was the Kaufhaus des Westen, the West’s market. An entire city block and sixth floors of almost everything you can imagine. Even by Western standards, it was an incredible place. Before August 1961 (the building of the wall) it must've been mind-boggling for Germans living in Soviet Zone to stop in on a visit to West Berlin. The difference between what was available at KaDeWe and in the East would have been enourmous. There was a difference between KaDeWe and other stores even in West Berlin. It really was unique.

30 years later, KaDeWe is still there and it still has almost everything, but it is no longer unique. In Berlin we saw several stores that could match KaDeWe‘s inventory and even its style. It is not all that surprising. West Germany and then all of Germany has been a prosperous country
The Media Giant in the shadow of the DGR's Fernsehturm
for decades. Plenty of time for consumers to develop the demand and for retailers to respond to fill that demand. Today it is hard to imagine what might you might want that you couldn't find at your average department store, whether it be in Dresden, Munich or even a small town. A trip to KaDeWe in Berlin does not astound anymore.

Shopping in Germany was not exactly like shopping in the US, however. There was a noticeable difference in the grocery stores. It seems the German chains target market niches much more than the ones were used to in California. In our neighborhood in Berlin
You can get anything at KaDeWe
(Kreuzberg: working-class, immigrant) there were two chains near our flat. Both of them seem to be geared toward the budget end of the market. In terms of product diversity they had pretty much everything you want, but unlike Safeway, they did not have a choice in terms of quality within the product category. It was budget-brand this or budget-brand that. Not a brand-name in sight.  Not even in the important product categories where you might want a bit of luxury - like chocolate or (for Germans, gasp!) beer.

Still playing WiT9?  Racking your brain?  I bet you could use a stiff drink.  This would be your go-to guy!

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