German e-retailers remain optimistic as the interactive retail sector is continuing to experience an economic boom this spring, despite a slightly gloomier economic and business climate in the German online and mail-order trade, the latest B2C study by the German e-retail association (bevh) showed.
According to the annual study in cooperation with Creditreform Boniversum GmbH (Boniversum), the gloomier business climate corresponds to the ‘rather restrained’ overall economic situation in Germany at the beginning of this year. But even though all basic figures (new orders, revenues, earnings and employment situation) show a declining trend, the mood among the German online retailers continues to be considerably more positive than in the country’s overall economy, the e-commerce association emphasised.
Thus, the proportion of companies expecting an increase in orders and higher sales is twice as high among the interactive retailers as the corresponding figure in the overall economy. Their optimism is also reflected in their expectations for the future which are much more optimistic than the current assessments of the overall economic situation in Germany.
"Although the economic downturn in 2014 left its mark on such a profitable industry as the interactive trade sector, the long-term growth trend is continuing nevertheless. The results of the retailers’ survey confirm that and show above all that the online and mail-order business with its above-average business climate is a mainstay of the economic upturn," bevh executive director Christoph Wenk-Fischer said.
The willingness of German e-retailers to invest is still at a very high level of 86%, despite a slight decline of three percentage points compared to 89% in spring 2014, which remains considerably higher than the national macroeconomic average of 54%. The most mentioned type of investments among online and distance traders is capacity expansion, which can be understood as an expression of economic optimism. In particular, profitable companies in the sectors of technology and clothing are planning above-average investments.
Meanwhile, nearly nine out of ten online and mail-order retailers use social media channels such as Facebook, Google+ or Twitter in order to qualify and expand their customer relationships, with 86% of them being active in social networks, a 5% increase compared to the previous year. The main reasons for the use of social media is their relevance as a marketing platform (30% in 2015 vs 21% in 2014), closer customer contact (28%) as well as the increasing level of brand awareness (24% in 2015 vs 33% in 2015).
At the same time, mobile commerce is emerging as the new growth driver in the German e-retail sector, with more than half (55%) of the interactive retailers already implementing corresponding features such as mobile-optimised shops, responsive design or mobile apps. The revenue share of mobile commerce is already around 15%, with the average transaction value amounting to €99.
"For consumers, shopping via mobile devices has already become something normal. The current survey results show that mobile commerce is also becoming increasingly important for retailers. Already six out of ten online and mail-order companies have optimised their shops for m-commerce. In addition to big and profitable companies, small businesses also start to focus on m-commerce, as part of their specialisation strategy,” Ralf Zirbes, Managing Director of Bonuniversum, commented.
Published for a fourth year in a row, the annual study “The economic situation in German interactive B2C trade 2014/2015” reviews the business situation and expectations of German interactive retailers and their use of social media and social commerce. For this year’s study, over 160 interviews were carried out with decision-makers during the spring to obtain a comprehensive picture.
