Market Trends of Germany E-commerce Industry
This section covers the major market trends shaping the Germany E-commerce Market according to our research experts:
Rising Adoption of M-commerce
- M-commerce, also known as mobile commerce, involves shopping online through mobile devices like smartphones or tablets. Mobile shopping apps are increasingly becoming more popular amongst retailers and regional shoppers.
- The growth of the e-commerce market in Germany can be attributed to the considerable proportion of the population who own smartphones. Moreover, the rising adoption of m-commerce in Germany is also contributing to the growth of the country's e-commerce industry. This growth is expected to continue as retailers improve their mobile websites and provide even more convenient shopping methods on mobile devices.
- One of the primary reasons for the increase in m-commerce popularity is that many market players in the region have developed dedicated apps. Also, searching for products and payment processes are becoming more easier. Many applications allow connecting consumers with a credit card, another aspect driving the market's growth.
- As per EUROSTAT, the proportion of individuals aged between 16 to 74 in the European Union who ordered or brought goods and services over the internet for private use continued to rise. In 2021, it stood at 66 %, an increase of 15 percentage points compared with 2016. More than three-quarters of individuals in Germany, among other European nations, ordered or bought goods or services over the internet in 2021.
- As per the e-commerce association BEVH, the mobile e-commerce revenue in Germany increased by 56.5% to EUR 39.9 billion within the past two years of the pandemic and made up around 40% of e-commerce goods sales in 2021. A year ago, sales generated by mobile devices stood at EUR 28.1 billion.
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Fashion and Apparel Segment is Expected to Grow at a Significant CAGR
- With the rising adoption of e-commerce, consumers have more choices than ever before. Moreover, now companies are providing a tailored online shopping experience. The fashion segment in the market is further expected to grow over the forecast period.
- Textile and clothing retailers are connected because textile manufacturing leads to the production and sale of clothing items. Moreover, the textile and clothing market is one of the leading industries in Germany. Textiles also include sportswear, workwear, various home textiles, and bedding. The rise of online shopping among consumers also leads to changing customer preferences, quality standards, and convenience, among other factors.
- As reported by Eversheds Sutherland, E-commerce as a percentage of total apparel sales in the country was 26% in 2018 and is further expected to increase to 45% in 2025. online apparel sales significantly increased as a result of the COVID-19 outbreak. In 2020, e-commerce accounted for 38% of all apparel sales, about 11% higher than the previous year.
- German consumers are well informed and very demanding. Consumers compare and look for the best deal: value for money is a central term in the German worldview before purchasing. E-commerce platforms provide value for money, ease of convenience, and the latest fashion trends, driving the nation's market. Moreover, sustainability is dominating consumer priorities and fashion choices. Consumers increasingly look for information regarding the source of the materials and how products are made. In response, many companies are expanding their sustainable strategies and working to boost the sustainability of their regional supply chains.
