Market Trends of Germany Express Delivery Industry
Increased E-commerce Sales Driving the Market
- In Germany, online purchasing is booming. This expansion is fueled in part by the emergence of new consumer behaviour over the last two years: more Germans are shopping online than ever before. The pandemic gave customers an incentive to attempt e-commerce for the first time or to buy from new categories and try new online stores if they were already seasoned online shoppers. Since the epidemic, customers have not only refused to give up the convenience of e-commerce, but new trends, such as growing expenses and the desire to look for deals, have given them even more reasons to double down on their e-commerce passion. This is demonstrated by the fact that macroeconomic factors all around the world
- The B2C e-commerce market in Germany is expanding and is predicted to do even better in the next three to four years. Social media platforms are one of the avenues that brands use to reach their target audience. Because physical retail was closed during the pandemic, shoppers were forced to turn to online shopping channels. However, e-commerce players' increased operational efficiency and high-end customer service have resulted in unprecedented satisfaction among German shoppers. Mobile shopping is getting more popular in Germany, with smartphones and tablets accounting for a large portion of total e-commerce transactions. With the rise of social commerce in Germany, this trend is anticipated to acquire traction over the next three to four years. While online purchases have increased across different product categories, pet supplies, drugstore products, and groceries have recorded strong growth.
- Amid tough competition in the German e-commerce market, competitors are focusing on the high-end fashion area, which is growing in popularity among customers, to drive transaction value and income. Amazon, one of the top participants in the German e-commerce business, announced the opening of its Luxury Stores in Germany in June 2022. The company intends to increase the number of transactions on its network via Luxury Stores, resulting in additional revenue. Consumers could choose from eight brands when the company first launched. Dundas, Mira Mikati, Christopher Kane, Elie Saab, Rianna+Nina, Jonathan Cohan, and others are among them. The introduction of its Luxury Stores in Germany is part of the firm's ambition to broaden its product offering, with additional fashion labels to be added in the future.
Understand The Key Trends Shaping This Market
Download PDF
Increased Demand for CEP Driving the Market
- German citizens received significantly fewer parcels last Christmas than industry experts had expected. In November and December 2022, around 395 million parcels were delivered to private individuals in Germany, 20 million fewer than forecast. Christmas is the most important time of the year for parcel companies. Sales promotions such as Black Friday at the end of November boost consumption, and the closer Christmas Eve gets the more intensively many consumers search for gifts on the Internet. Package volumes are correspondingly high. After strong growth years in Corona times, the parcel industry took a breather, so to speak, last Christmas season. In the 2021 Christmas business, there had been 440 million shipments - much more than before. The 395 million in the 2022 Christmas business is still a significantly higher level than pre-pandemic: in November and December 2019, 366 million items had been sent to private individuals in Germany.
- Postal service providers in Germany are challenged to transport and deliver letters and parcels with fewer emissions in the future. This will require a fundamental restructuring of transport and delivery networks. Players in the market are integrating electric vehicles into their fleets to reduce the emissions from their operations. For instance, in December 2022 Volvo Trucks and Deutsche Post DHL Group signed a cooperation agreement to accelerate the shift to zero exhaust emission vehicles. DHL intends to intensify its transition to heavy electric trucks by deploying a total of 44 new electric Volvo trucks on routes in Europe.
- The parcel service provider GLS Germany is currently testing parcel delivery by rail as part of its sustainability strategy 'Climate Protect'. In a pilot project running until the end of January, up to 1,000 parcels a day will be sent by train from Nuremberg to Hanover. Other players in the market are also undertaking similar initiatives.
- In October 2022, DPD Germany and nebenan.de launched "Parcel Neighbours" cooperation for reliable and sustainable deliveries. DPD parcel consignees can now find their preferred neighbour on nebenan.de and ask directly whether the person involved can take delivery of a parcel that is on its way. With just a few clicks parcel consignees can now even reach neighbours who don't live in their buildings. Another advantage of the cooperation is more successful first-time deliveries, and consequently the reduction of environmentally harmful CO2 emissions.
