Will the European Union fish trade go the way of America?

​Is the aquarium business stagnating? How will this segment of the pet market develop after the merger, when the Single European Market becomes a reality? How is the wholesale trade preparing for this date?

​PETS Europe correspondent Ivo Baumann talked to Günther Drews, manager of the Import Agency in Darmstadt, Germany. Here are his opinions and comments.

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The situation of the aquarium retail trade:

The current situation in our sector can be viewed with a certain optimism, but there is also cause for concern. In the first place, virtually every week a new business is being established. These enterprises usually from the start lack good insight into the market and become weighed down by financial commitments. After two years, at the latest, when income tax and back payments bring them into a precarious situation, they shut down. Secondly, grave mistakes concerning sales and distribution are still frequently made. To give an example, aquarium equipment is not being demonstrated or shown in action and consequently not sold. Articles and merchandise are exhibited badly, if at all, and are therefore overlooked.

​A positive aspect is that many specialized shops buy their supply of fresh and saltwater fish, water plants, and mammals via import agencies. By doing that, the chances of profit are raised considerably. Warning should be given, however, not to buy imports if the facilities for them are too limited.

​A negative situation is found where the market situation is not judged correctly and when help and advice is not available from the trade associations. More about this later.

​How will things be after the merger?

On the one hand, West Germany is a land of aquarium hobbyists, on the other the market for dog and cat food and articles is expanding rapidly. Already today foreign producers are pushing their way into the German market directly or via the wholesale trade. At all trade fairs, more fittingly named ‘market days,’ these producers are present. On offer are cheap articles and quality articles. These are, however, cheaper than those of the German producers.

​After 1992/93 there will be an invasion of foreign products, which, together with the German articles, will flood the market. The local wholesale or retail trade will not be able to deal with this for reasons of space, finance or staffing. It may be expected, moreover, that pet retail chains, as they were at the time established in France and England, with up to 72 stores, will enter the German market. With their aggressive approach, backed by PR firms, they will endanger the existing specialized retail trade. Surely it is not difficult to come to the conclusion that after 1992/93 there will only be specialized pet retail shops of a certain size, equipped with a capital backing relative to their turnover, because only they will be able to utilize every available percentage point in purchasing. In fact, that is what they will have to do to survive.

​With regard to the aquarium trade, we must presume that shops with 10 to 30 sales aquariums will longer be around.

​Even the direct surroundings are an insufficient ‘catchment area,’ because a large store, or several competitors, with a shop floorspace of 300 to 500 m2 or more will operate in the vicinity with prices and well aimed PR campaigns. The small specialized shop will not be able to stand up to such a situation. Already today the customer goes into the big stores, even though they might be more expensive because they offer a wider choice.

​We have to conclude from this, that the German producers must price their products more competitively in order to stay in business. The wholesale and retail trade must lower their profit margins.

​What would be helpful to our trade?

There are ways in which we could cope with this foreign invasion. It can hardly be expected that a number of shops will merge to form one big store unless is a tightly run organization. It would require managers who understand their trade and have leadership qualities, who can devote all their energy to the business instead of having to be busy all day in their little pet shop with the evenings and weekends devoted to the trade association. That simply is impossible!

​We all know how labour-intensive our work is. A man like Mr. Fish, equipped with great expertise, outstanding knowledge of people, a brilliant capacity for integration and, finally, a great friend of Nature will be willing to offer his expertise to ornamental importers all over the world.

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