Germany State of Retail: Online Retailing Market Report 2024
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Report Summary
Increased use of new technologies will help grow the eCommerce market size Germany. While AI will be key in the online retail market sector, consumers are worried about the security of their data online, and think that retailers need to take responsibility.
Online Retail Market – Current Landscape
The increasing cost of living has affected sales in eCommerce in Germany. Changes in consumer behaviour are not anticipated anytime soon, even if the steep decline slows down. The online channel’s value credentials will continue to attract consumers, but retailers need to find ways to provide additional value to maintain shoppers’ loyalty.
Online retailers must build on online shopping strengths in discovery and comparability, using advanced tech for a smooth online experience. AI is key in achieving this, as it is impacting the customer journey from the initial inspiration phase to personalised purchase recommendations.
The increased use of new technologies also faces significant consumer scepticism, as many online shoppers are wary of sharing personal information. In general, internet dangers place increasing responsibility on online retailers to guarantee security. Hence, helpful online tools must first convince users of their trustworthiness and quality.
eCommerce in Germany – Market Statistics
- eCommerce Market Size Germany: 54% of German online shoppers aged 16-44 say having a busier schedule makes them shop online more, thus increasing the eCommerce market opportunities in Germany.
- Online Retail Market Challenges: 68% of German online shoppers are wary of giving personal information to a retailer’s AI tool, and think that online retailers are responsible for security when using their platforms.
- Online Retail Market Trends: Almost 50% of male German online shoppers aged 16-34 have participated in a game-like promotion on a retailer’s website or app in the last year. Gamification of loyalty schemes has the potential to boost engagement, especially among younger men.
eCommerce in Germany Market Report – What’s Inside?
Key Topics Analysed in this Report
- A five-year outlook for the online retailing sector in Germany, including market activity, sector size and forecast, and market segmentation.
- Who shops online, including online shopping frequency by demographic factors, and what type of products are purchased online.
- Retailers shopped online and services used for online purchases.
- Consumer behaviours regarding online shopping, with reliable reviews being crucial for consumers.
Report Scope
This Report is designed to give an overview of the German online retail market, including forecasts for future developments, in-depth consumer analysis using our own data. A section looking at the key players in this sector and company profiles are also included in this report.
Meet the Expert Behind the Analysis
This report was written by Lena Rittmann, Analyst at Mintel. Lena writes reports and provides consumer insights about various industries. During her studies and her internships, she gained practical experience in social media monitoring and journalism and completed a one-year trainee in media consulting and planning. She holds a M.Sc. in International Management from Bochum University of Applied Science.
As overseas marketplaces challenge the status quo, opportunities exist in the online retail market for differentiation through authenticity, innovative AI solutions, and more customer engagement by tapping into resale.
Lena Rittmann
Analyst
Table of Contents
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Executive summary
- The five year outlook for online retailing
- Market context
- High prices drive up household expenses, prompting Germans to maintain a cautious approach to spending
- Graph 1: consumer spending of private households in Germany in € bn, incl. VAT, 2019-23
- Mintel predicts
- Market size & forecast
- Online sales’ long term growth rate is approaching pre-COVID-19 levels again
- Advanced technologies in online shopping are set to propel the sector with improved user experience and convenience
- Opportunities
- Transform the online customer journey with advanced technologies
- Graph 2: consumer perception of how convenient it is to do each of the following when shopping for products online compared to shopping for products in-store, 2024
- Enhance consumer trust in data sharing to boost AI’s impact on the customer experience
- Create an online experience that caters to consumers’ busy lifestyles
- Increase the trustworthiness of reviews to speed up decision processes
- The competitive landscape
- Amazon dominates the German online sales market
-
market drivers
- The German economy
- 2024 remains challenging
- Graph 3: key economic data, in real terms, 2019-25
- The inflation rate is bouncing back to more conventional levels
- Inflation is still the key factor affecting consumers’ finances…
- …confidence and expenditure
- Graph 4: financial confidence index, 2022-24
- High prices push up household expenses, yet real-term spending decreases
- Germans continue to take a cautious approach to spending…
- Graph 5: expected changes in consumer spending habits in 2024 compared to 2023, 2024
- …although the more positive expectation of younger consumers can boost popular online shopping categories
- AI is set to transform online shopping
- AI is set to change the way consumers navigate online
- AI has the potential to impact consumers’ life decisions…
- Graph 6: agreement with “I would be comfortable following the recommendations of Artificial Intelligence (AI) on…”, 2024
- …but effectiveness relies on gaining consumer trust
- Sustainability regulations will impact consumers’ purchasing habits
- Right to Repair directive: retailers must adapt to changing legislation
- Right to Repair can impact consumer confidence in buying used goods online
- Social media’s impact on the digital customer journey continues to grow
- Gen Z is embracing social search
- Brands must be ready as social media platforms take the step towards ecommerce
- Developing smartphone models will create new opportunities for app shopping
- The smartphone is wildly popular for online shopping
- Graph 7: shopped online via smartphone, by age*, 2024
- Retail app service quality rising through advances in technology…
- …and 5G rollout that drives future of connectivity
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MARKET ACTIVITY
- Sector size and forecast
- The sharp decline in online sales has stopped for the time being…
- Graph 8: online retail sales, € bn, incl VAT, 2019-24
- …but a turnaround in consumption behaviour is not expected in 2024
- Online sales poised to approach pre-COVID-19 growth levels again
- Advanced technologies will boost the online shopping experience and convenience
- Market segmentation
- Key ecommerce sectors clothing and everyday essentials stabilise after losses
- Graph 9: online retail turnover, by cluster, € m, incl VAT, 2023-24
- Channels of distribution
- Online marketplaces account for half of online retail sales
- Graph 10: share of distribution channel on total ecommerce sales, 2023
- Multichannel retailers struggle online while marketplaces benefit from their wide range
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What consumers want, and why
- Who shops online
- Online shopping is almost universal in Germany…
- …with online shopping’s popularity extending across age groups
- Graph 11: any online shopping done in the last 12 months, by age, 2024
- Most Germans shop online on a monthly basis
- Graph 12: how often consumers shopped online in the last 12 months, 2020-24
- Most Germans shop online on a monthly basis
- Graph 13: how often consumers shopped online in the last 12 months, 2020-24
- More than a third of Germans with healthy finances shop online weekly
- Graph 14: frequency of online shopping – NET, by net monthly household income and financial situation, 2024
- Weekly online shopping is particularly popular among the busy younger population
- Graph 15: how often consumers shop online – NET, by age, 2024
- What consumers purchase online
- Clothing remains the most popular category for Germans to purchase online
- Graph 16: products purchased online, 2024
- The convenience of online shopping plays into the hands of clothing retailers…
- …but cannot convince in all product categories
- Online shopping habits are becoming more focused…
- Graph 17: repertoire of products purchased online in the last 12 months, 2022-24
- …with clothing and big-ticket items being purchased less
- Graph 18: products purchased online, 2021-24
- Promotions used for online purchases
- 25-34s are leveraging services to get the best deals
- Graph 19: promotions used when purchasing products online in the last 12 months, 2023-24
- Frequent online shoppers are more likely to leverage loyalty/discount services
- Graph 20: promotions used when purchasing products online in the last 12 months by frequency of online shopping, 2024
- Retailers used online
- Most online-shoppers use online-only retailers
- Age influences interest in shopping online with omnichannel retailers
- Graph 21: retailers with physical stores shopped with online, by age, 2024
- Almost nine in 10 German pureplay shoppers use Amazon
- Graph 22: online only retailers used, 2024
- Like Amazon but cheaper: successful launch of Temu in Germany strikes a chord with consumers
- Drugstores and perfumeries are driving online business with convenience
- Graph 23: retailers with physcial stores shopped with online, 2024
- Logistics help drugstores compete with online grocery retailers
- Convenience of online shopping vs in-store shopping
- Advantages of online shopping lie in discovery and comparison
- Graph 24: consumers’ perception of how convenient it is to do each of the following when shopping for products online compared to shopping for products in-store, 2024
- Elevate the customer journey from beginning to end with advanced technologies
- AI chatbots can enhance customer service online…
- …but still need to convince of their value
- Over-55s are sceptical when it comes to assessing product quality and authenticity online
- Graph 25: whether consumers think checking the quality of a product is more, about the same or less convenient online than in-store, by age, 2024
- Graph 26: whether consumers think verifying the authenticity of a product is more, about the same or less convenient online than in-store, by age, 2024
- Don’t leave customers in doubt about quality and authenticity
- Omnichannel retailers gain an edge when combining online convenience with an in-store experience
- Behaviours regarding online shopping
- Exploit concerns around overseas sourcing
- Graph 27: behaviours regarding online shopping, 2024
- Exploit concerns around overseas sourcing
- Internet dangers place increasing responsibility on online retailers to guarantee security
- Young men aged 16-24 are most likely to embrace AI tools for inspiration purposes
- Graph 28: consumers who have used an artificial intelligence tool to find product inspiration in the last 12 months, by gender and age, 2024
- Boost AI tool efficiency by enhancing consumer trust in data sharing
- Tap into online shopping’s advantage in busy lifestyles
- Avoid overwhelming consumers with irrelevant search results
- Flaschenpost highlights the importance of valuing consumers’ free time
- Boosting reliability of reviews is key to convince busy consumers
- Circular economy can grow among all age groups
- Graph 29: consumer behaviour regarding buying and selling second-hand products online, by age, 2024
- Leverage resale potential across age groups to increase brand loyalty and engagement
- Younger online shoppers support small online businesses
- Spark the interest of young male online shoppers with engaging loyalty schemes
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RETAILER ACTIVITY
- Leading retailers
- Domestic revenues of Germany’s leading online retailers
- MediamarktSaturn taps into its omnichannel opportunities for marketplace sellers
- OTTO invests in expansion of its live shopping concept
- Zalando boosts efforts in merging fashion with lifestyle through AI
- eBay expands its authenticity verification for a secure purchase of refurbished products online
- Amazon continues to pursue its strategy towards greater sustainability in ecommerce
- IKEA equips consumers with tools to unleash their creativity
- Market share
- Amazon’s revenue dominates the German online sales market
- Graph 30: market share of leading online retailer, based on online retail value sales, 2023
- Retail innovation
- Amazon makes AI online shopping assistant ‘Rufus’ available for US-customers
- Globetrotter launches second-hand online shop and supports consumers in their interest to resell
- Douglas innovates with AI beauty advisor for personalised online shopping experience
- IKEA inspires online shoppers with an intuitive 3D room planner
- Zalando’s tests innovative in-stream shopping experience
- OTTO starts live shopping on Apple Vision Pro
- Amazon tackles fake reviews with AI
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Appendix
- Appendix – products covered, abbreviations and consumer research methodology and language usage
- Products covered in this Report
- Abbreviations
- Consumer research methodology
- A note on language
- Appendix – repertoire analysis methodology
- Repertoire analysis methodology
- Appendix – market size and forecast
- Forecast methodology
- Forecast methodology – fan chart
- Market size and forecast – value
- Market forecast and prediction intervals – value
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