German online retail grew strongly at a double-digit rate of 12% in 2015 while the whole interactive retail sector increased solidly by 6.7%, compared to only 3.1% growth in the country’s overall retail trade, according to annual figures from the ‘bevh’ association.
This year, the association expects interactive retail in Germany, covering online and mail-order sales, to increase sales by 4% to €54.5 billion. However, e-commerce sales are forecast to increase at a double-digit rate of 12% to €52.5 billion keeping the online sales growth at the same level as in 2015.
Last year, the overall interactive trade in Germany, which accounted for 11.7% of the whole retail trade in the country, grew by 6.7% to €52.37 billion, up from low 2% growth rate in 2014. The proportion contributed by online sales rose to 90% in 2015 compared to 85% the previous year, as online trade grew by 12% in 2015 to €46.9 billion. Consumers also spent nearly €13 billion on digital products and services.
"In 2015, interactive trade showed growth for four consecutive quarters. The shopping mood is stable due to the robust economy and low interest rates. The increase in sales is a vote by a mouse click: e-commerce and mail-order trade stand for more choice, service and modern shopping experience,” Gero Furchheim, bevh president said.
Last year, the strongest product group in sales terms was clothes once again reaching €10 billion, which equals 18% growth year-on-year. Consumer electronics ranked second with sales increasing 33% to €7.6 billion while books (including e-books) were third with sales worth €3.6 billion, down 8% on 2014.
“The book market is experiencing a period of change with cheap self-publishing products, subscription-based reading models and lending e-libraries becoming increasingly popular. In addition, the click&collect mechanisms transfer the e-commerce revenues in the book segment into the cash points of the traditional book shops. We assume that these developments cause the revenue decline that we identified in our analysis,” bevh executive director Christoph Wenk-Fischer said.
At the same time, industries that were previously less present in mail order and online trade such as furniture and decoration articles recorded significant sales increases, with a year-on-year increase of 15% to sales of €2.3 billion.
Groceries are also being increasingly purchased online with sales growing 19% to €736 million. The largest growth was recorded in the product group “pet supplies” with sales reaching €842 million which equals a spectacular increase of 74% compared to 2014 even though its share in the overall e-commerce is still very small.
"Furniture and fast moving items such as food or pet supplies reflect the current but also future developments in e-commerce in the best way. More and more consumers start to buy goods of daily use online because they value home delivery or the convenience of shopping at home. At the same time, consumers no longer think in individual channels. In the furniture segment, for example, online and offline interdigitate more and more. Preliminary information on the internet or delivery to a store are examples of an optimised buying experience,” Furchheim said.
In terms of seller categories, online marketplaces such as Amazon and eBay generate more than half of total German e-commerce revenues with revenues reaching €25 billion in 2015, a 4% increase compared to 2014. However, multi-channel retailers who respond to and reach customers across multiple channels remain the clear winners in terms of growth, with sales reaching €14 billion in 2015, a strong increase of 27%. In particular, consumers preferred this shipper type when purchasing clothes and furniture last year. Internet pure players ranked third with sales worth €6.3 billion, a 6% increase on 2014. Consumers looking for shoes and pet supplies mostly made their purchases via internet pure players.
Thanks to a “good consumer climate and extraordinary innovation potential”, bevh’s forecast for 2016 remains optimistic, with 4% growth estimated for overall interactive trade and 12% for e-commerce sales.
"In view of the situation on the market, the economic conditions and the untapped growth potential of certain product groups, we continue to expect above-average growth in online and mail order trade, compared to the overall retail trade. The volume of retail trade allows for much more e-commerce,” Wenk-Fischer concluded.
For the third year in a row, Bevh’s long-running consumer study “Interactive Trade in Germany” is featuring an updated design, in cooperation with the GIM-Society for Innovative market research, with 40,000 consumers being interviewed regarding their shopping behaviour in online and distance trade compared to 30,000 previously.
