Germany is lifting its Corona prevention restrictions. What do German companies (startups and dinosaurs) look like 100 days into the crisis? Germany’s first corporate winners and losers on how they reacted to this crisis, according to FSG’s content marketing expert Maartje.
Marley Spoon/Hello Fresh, Berlin
Restaurants were closed, people were at home, Berlin based Hello Fresh took advantage of the Corona crisis. Their revenue increased by 66 per cent in the first quarter of 2020, one million more people ordered their food boxes. Berlin competitor Marley Spoon also saw its numbers rise. Revenue increased there by 46 per cent.
Plexiglass helps protect people from the very infectious Corona virus. Berliners will find plexiglass in every Späti, supermarket, hair salon or drug store here, protecting workers from customers and the other way around. The German company Plexiglas (written with one ‘s’) was founded in 1903 by a German scientist and was bought by American private equity group Advent International in 2019 for 2,5 billion euros. Since the start of the Corona crisis, production has increased ‘five to ten times’ for the company (total company revenues to the tune of €2 billion ($2.16 billion) in 2018).
Frankfurt based Teamviewer, which allows companies to let their employees work remotely by sharing screens and having online meetings, is going through the roof. ‘Ein der Profiteuren der Coronakrise’, wrote Handelsblad about the company that was founded in 2005. Their revenue in the first quarter of 2020: 102,7 million euros (+19 per cent YoY).
The online fashion platform from Berlin is growing even though fashion in general was hit hard during the first 100 days of the Corona crisis. After announcing this month that the company is still doing well, Zalando said that they are still planning to grow around 10 to 20 percent this year.
The Startups in Berlin
4 out of 10 startups currently don’t have enough money in the bank to survive for another three months, according to data from the organization Startup Genome. Since the start of the Corona crisis, investments in startups worldwide have decreased with 20 per cent. Is funding going to dry up for the Berlin startup scene? In Germany, it’s unclear yet whether and how many startups will file for bankruptcy, since the state has allowed startups to wait with filing for bankruptcy until September 30th 2020. One of Berlin’s Unicorns, Getyourguide, was hit hard, according to data from Priori. Downloads of the Getyourguide app have dropped drastically from around 7.000 daily downloads in February and March, to less than 100 in April and May of this year.
With a float of 760 airplanes and only 80 of them up and running at this point, German airline Lufthansa is clearly hurt. The Frankfurt based ‘Luftgesellschaft’ saw its amount of passengers decline by 99 per cent since the start of the crises. A total of 3.000 flights is cancelled – daily. However, the airline published its 2019 numbers proudly halfway May 2020, saying 2019 was a year like never before. They added that ‘they are looking forward to June, when many travelers will hit the road again’, which made them announce to add 80 more planes to the float. Lufthansa employees currently in Kurzarbeit: 80.000 from 130.000. Lufthansa’s CEO asked the German governement for financial support, however, is not interested in giving away part of its shares in return. ‘We need Germany, but Germany needs Lufthansa, too’, he said.
The car industry, all over Germany
Car sales in Germany have fallen to a historic low. German carmakers have demanded a purchase incentive from Chancellor Merkel, like the one in the crisis of 2008. Back then, Germans purchasing a car, could redeem a 2.500 euro voucher when handing in a used car in order to purchase a new one. VW, BMW, Audi and Mercedes are going through tough times. In April of this year, VW sold 45 per cent less cars compared to 2019 worldwide.
All in all, it’s too early to draw drastic conclusions after the first 100 days. However, the fact that the world will change, is something many agree on. (Read this interesting piece in the Guardian about the potential new world order to find out why, according to the author, the EU will be the biggest Corona-loser of all).
Are you interested in reading more on how we at FSG are dealing with the Corona Crisis for the different international brands we represent?
Click here to find more about FSG and what we do.