Consumer Attitudes & Online Retail Dynamics in Germany

Synopsis
"Consumer Attitudes & Online Retail Dynamics in Germany" provides in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories) and reviews of latest best practice in online retail site design.

Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential contexts on the penetration of online sales by product groups, how growth has developed over time and key drivers of this market in the future.

Summary
This report is the result of ICD’s extensive market research covering the online retail industry in Germany. “Consumer Attitudes & Online Retail Development in Germany” provides the magnitude, growth, share, and dynamics of the online retail market and is an essential tool for companies either active in this sector or which are seeking to target this channel.

The report provides core insights into consumer behavior and highlights the latest online trends and their impact on online product sales. Core data sets give both historical contexts and a view into the future - providing data from 2005 through to 2015 and allowing marketers to update their strategic planning and fill gaps in their knowledge about this rapidly evolving channel.

By examining best practice from leading national large-scale online retailers (but specifically excluding the likes of Amazon whose sites are well-known and vary little by country), as well as reviewing innovative approaches from smaller players, the report also provides insights and ideas about how best to approach growing online sales for your business.

Together these three core elements; market dynamics, consumer understanding and best practice examples will allow readers to easily understand the nature and development of online retail in Germany and provide insight into how best to exploit the opportunities in the market.

Scope
The report analyses online consumer behavior, market dynamics and best practice approaches to online retail in Germany. In particular, core market data sets cover 8 product groups and 25 individual product markets within Germany.

Product Coverage:
Clothing & Footwear
Jewelry & Watches
Luggage & Leather goods
Printed Media
Stationery & Cards
Communications Equipment
Computer Hardware & Software
Consumer Electronics
Household Appliances
Photographic Equipment
Drinks
Household Products
Packaged Food
Personal Care
Tobacco
Unpackaged Food
Floor Coverings
Furniture
Gardening & Outdoor Living
Home Improvement
Home Wares
Games Software
Music & Video
Sports Equipment
Toys & Games

Reasons to Buy
This report provides readers with unparalled levels of detail and insight into the development of online retail sales within Germany:

- Understand the consumer behavior and online trends in Germany
- Understand which products will be the major winners and losers in the coming years
- Assess the impact of economic recession and recovery on market growth
- Learn from best practice approaches outlined in the case studies of leading online retailers
- Improve market and strategic planning using highly granular, forward-looking market data

Key Highlights
In the Euro zone, Germany was among the first countries to recover following of the global economic recession and the country is growing at its fastest rates since its unification. Industry data released by the German government forecasts the economy to grow at a faster pace than previously expected. This can be attributed to the strong construction sector and buoyant demand for German products worldwide, particularly from Asia. These factors will have a greater impact on domestic retail activity, with a significant increase in business investments, consumption expenditure, employment levels and wages. Furthermore, with oil prices forecasted to increase moderately, inflation is likely to remain stable at X.X% for the rest of 2011, maintaining the low retail prices. While the retail market is forecasted to grow modestly by 1.31% between 2010 and 2011, increased consumer confidence and better labor conditions are anticipated to sustain the recovery during the forecast period.

In contrast to the retail market, the online retail channel has grown significantly and recorded a CAGR of XX.XX% during the review period. This can be attributed to the change in consumer perceptions towards the online retail channel, which is considered a cheaper and convenient shopping alternative to traditional retail outlets. While audio and video content, games and software were the most popular purchases, an increasing number of German consumers are now opting to purchase products such as apparel, furniture and furnishings, and do-it-yourself items online. Although Germany has a lower online shopping penetration rate than other mature economies such as the US, the UK and France, it’s large population and high levels of disposable income make it one of the largest online markets in Europe.

Table of contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.3.1 Overview
1.3.2 The Triangulated Market Sizing Method
1.3.3 Industry Surveys in the creation of Retail Market Data
1.3.4 Quality Control and Standardized Processes
2 Consumer Insight: Online Shopping Attitudes and Behaviours
2.1 Overview of the German Online Shopping Environment
2.1.1 Online population increased at a CAGR of 3.25 percent for the period 2005-2010
2.1.2 Government and private telecom operators collaborate to improve broadband penetration across the country
2.1.3 Increasing smart–phone penetration and low mobile data tariffs to boost m– commerce transactions
2.2 Consumer Attitudes and Behavior
2.2.1 Three in every five Germans shopped online in 2010
2.2.2 Online retail performs better that traditional retail channels, despite recession
2.2.3 Low–touch products driving online retail sales; music, video and entertainment software most popular product online
2.2.4 Social shoppers pushing for increased interaction with retailers on social networks
2.2.5 Nearly 5.4 million Germans engaged in m–commerce transactions in 2010
2.2.6 Consumers prefer innovative online payment methods
3 Online Channel Dynamics
3.1 Online Share of Total Retail Sales
3.1.1 Germany Online vs. Offline Channel Forecasts
3.1.2 Online Penetration: Global and Regional Comparisons
3.2 Channel Dynamics
3.2.1 Germany Channel Group Dynamics – Future Performance
3.2.2 Channel Group Share Development
3.2.3 Individual Channel Performance
3.3 Category Dynamics
3.3.1 Online Vs Offline Retail Sales Comparison by Product Category Group 2010
3.3.2 Online Retail Market Dynamics by Category Group
3.3.3 Online Retail Sales Share by Product Group
3.3.4 Online Retail Sales Growth by individual Product Categories
3.3.4.1 Food and Grocery Categories Market Size and Forecasts
3.3.4.2 Electrical and Electronics Categories Market Size and Forecasts
3.3.4.3 Music, Video and Entertainment Software Group Market Size and Forecasts
3.3.4.4 Apparel, Accessories and Luxury group Market Size and Forecasts
3.3.4.5 Books, News and Stationery Group Market Size and Forecasts
3.3.4.6 Sports and Leisure Equipment Product Group Market Size and Forecasts
3.3.4.7 Furniture and Floor Coverings Product Group Market Size and Forecasts
3.3.4.8 Home and Garden Product Groups Market Size and Forecasts
4 Case Studies: Leading Online Retailers in Germany
4.1 Retailer 1: Otto Group
4.1.1 Business Description
4.1.2 Site Experience
4.2 Retailer 2: Conrad
4.2.1 Business Description
4.2.2 Site Experience
4.3 Retailer 3: Tanner + Tailor
4.3.1 Business Description
4.3.2 Site Experience
4.4 Other Innovative Retailers in Germany
4.4.1 Douglas.de
4.4.2 Baur.de
5 Appendix
5.1 Methodology
5.2 Contact us
5.3 About ICD Research
5.4 Disclaimer

List of Tables
Table 1: Germany Exchange Rate US$–EUR (Annual Average), 2005–2010
Table 2: ICD Research Retail Channel Definitions
Table 3: ICD Research Retail Category Definitions
Table 4: ICD Research Retail Country Coverage
Table 5: Germany Channel Retail Sales and Forecast (US$ billion), By Channel Group, 2005–2015
Table 6: Germany Channel Retail Sales and Forecast (US$ billion), By Channel Group, 2005–2015
Table 7: Germany Channel Retail Sales and Forecast (% Share), 2005–2015
Table 8: Germany Online Sales Vs Global Average
Table 9: Germany Online Sales Vs Western Europe
Table 10: Germany Overall Retail Segmentation (EUR billion), By Channel Group, 2005–2015
Table 11: Germany Channel Retail Sales and Forecast (EUR billion), By Channel Group, 2005–2015
Table 12: Germany Channel Retail Sales and Forecast (US$ billion), By Channel Group, 2005–2015
Table 13: Germany Channel Retail Sales and Forecast ( % Share), By Channel Group, 2005–2015
Table 14: Germany Channel Retail Sales and Forecast (EUR billion), By Channel, 2005–2015
Table 15: Germany Channel Retail Sales and Forecast (US$ billion), By Channel, 2005–2015
Table 16: Germany Retail Sales Split (EUR billion), Online Vs Offline, 2010
Table 17: Germany Retail Sales Split (US$ billion), Online Vs Offline, 2010
Table 18: Germany Online Retailers Market Dynamics, By Category Group, 2005–2015
Table 19: Germany Online Retail Sales and Forecast (EUR billion), By Category Group, 2005–2015
Table 20: Germany Online Retail Sales and Forecast (US$ billion), By Category Group, 2005–2015
Table 21: Germany Total and Online Retail Sales in Food and Grocery Product Category (EUR million), 2005–2015
Table 22: Germany Total and Online Retail Sales in Food and Grocery Product Categories (US$ million), 2005–2015
Table 23: Germany Total and Online Retail Sales in Electrical and Electronics Category (EUR million), 2005–2015
Table 24: Germany Total and Online Retail Sales in Electrical and Electronics Categories (US$ million), 2005–2015
Table 25: Germany Total And Online Retail Sales In Music, Video And Entertainment Categories (EUR million), 2005–2015
Table 26: Germany Total and Online Retail Sales in Music, video and entertainment Categories (US$ million), 2005–2015
Table 27: Germany Total and Online Retail Sales in Apparel, Accessories and Luxury Categories (EUR million), 2005–2015
Table 28: Germany Total and Online Retail Sales in Apparel, Accessories and Luxury Categories (US$ million), 2005–2015
Table 29: Germany Total and Online Retail Sales in Books, News and Stationery Categories (EUR million), 2005–2015
Table 30: Germany Total and Online Retail Sales in Books, News and Stationery Categories (US$ million), 2005–2015
Table 31: Germany Total and Online Retail Sales in Sports and Leisure Equipment Categories (EUR million), 2005–2015
Table 32: Germany Total and Online Retail Sales in Sports and Leisure Equipment Categories (US$ million), 2005–2015
Table 33: Germany Total and Online Retail Sales in Furniture and Floor Coverings Categories (EUR million), 2005–2015
Table 34: Germany Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ million), 2005–2015
Table 35: Germany Total and Online Retail Sales in Home and Garden Product Categories (EUR million), 2005–2015
Table 36: Germany Total and Online Retail Sales in Home and Garden Product Categories (US$ million), 2005–2015

List of Figures
Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Internet Users and Penetration, 2005–2010
Figure 3: Total Fixed Broadband Internet Subscribers and Penetration,2005–2010
Figure 4: Mobile Phone Penetration, 2005–2010
Figure 5: Germany Online Retail Shoppers as a Percentage of Online Users, 2008 vs. 2010
Figure 6: Online Retail Sales vs. Total Retail Sales Growth, 2006-2010
Figure 7: Germany Online Sales By Product Category (%), 2010
Figure 8: Online Population, Online Commerce Population and Mobile Commerce Population as a Percentage of Total Population, 2010
Figure 9: Germany Channel Retail Sales and Forecast (US$ billion), By Channel Group, 2005–2015
Figure 10: Germany Online Sales Vs Global Average (% of Total Retail)
Figure 11: Germany Online Sales Vs Western European Countries Average (% of Total Retail)
Figure 12: Germany Overall Retail Market Dynamics, By Channel, 2005–2015
Figure 13: Germany Retail Sales and Forecast (EUR billion), By Channel Group, 2005–2015
Figure 14: Germany Retail Sales Split, Online Vs Offline 2010
Figure 15: Germany Online Retailers Market Dynamics, By Category Group, 2005–2015
Figure 16: Germany Online Retail Sales and Forecast (US$ billion), By Category Group, 2005–2015
Figure 17: Otto.de - Usage of Online Space
Figure 18: Otto Group: Organized Product Page
Figure 19: Otto Group –Zoom in tool
Figure 20: Otto Group –Recommended products at the bottom of the page
Figure 21: Otto Group – Mobile Edition of Site
Figure 22: conrad.de - Usage of Online Space
Figure 23: conrad.de: Organized Product Page
Figure 24: conrad.de - Zoom in tool
Figure 25: tanner-tailor – Product Page Layout
Figure 26: tanner-tailor – Use of Online Space
Figure 27: tanner-tailor – Product Design Tool
Figure 28: douglas.de: Site Layout
Figure 29: baur.de: Fashion Blog

Related research categories

By sector: Retail (in Off-trade), Consumer (in Trends)

By market: Germany (in Europe)