In the first half of the year, Germany’s online turnover experienced a commendable increase of 4.3 percent, relative to the same timeframe last year.
The upward trajectory accelerated in the second quarter, witnessing a growth rate of 5.1 percent. This trend suggests a resurgence in consumer confidence within the nation.
The data originates from the Bundesverband E-Commerce und Versandhandel Deutschland, commonly referred to as bevh.
The association undertook a comprehensive study analyzing expenditure patterns in online and mail-order retail, alongside digital services, surveying an extensive cohort of 40,000 consumers from April through June.
Last year, ecommerce performance in Germany exceeded projections, achieving a growth rate of 3.2 percent. The latest study now unveils that German shoppers continue to amplify their online expenditures.
‘Mainstay of German retail sector’
“Ecommerce has emerged as a cornerstone of the German retail landscape amidst this challenging consumer climate,” remarked Martin Gross-Albenhausen, deputy secretary general of the ecommerce association bevh.
“Whether they operate solely online or as multichannel entities, all sellers have reaped benefits from this growth in the second quarter. However, a detailed analysis reveals that platforms, particularly those originating from Asia, are capturing an increasingly significant share of the market.”
Shift to online retail
The study also analyzed diverse sectors across the country. The most dynamic growth was observed among retailers of everyday essentials, which experienced an impressive increase of 10.1 percent, notably drugstore chains that surged by 11.7 percent. These sectors are progressively transitioning to online retail.
Entertainment and home furnishings lagged, recording growth of only 2.7%.
Seasonal categories, such as do-it-yourself goods and flowers, exhibited robust growth at 10.9 percent. This was followed by hobbies and leisure products, which grew by 7.5 percent, and car and motorcycle accessories that saw a 7.6 percent increase.
Additionally, mail-order pharmacies highlighted the most significant sales growth for pharmaceuticals since the introduction of e-prescriptions, boasting a 13.9 percent growth rate.
The fashion sector achieved a stronger growth rate in the second quarter (4.4 percent) as opposed to the first quarter (3.6 percent). In contrast, entertainment and home furnishings continued to trail behind the overall market (both at 2.7 percent).
Marketplaces had the strongest growth
By mid-year, online marketplaces generated a turnover of 11.5 billion euros in Germany, signifying an increase of 6.4 percent.
Direct-to-consumer manufacturers also showed robust expansion, growing by 6.3 percent. In comparison, traditional online retailers experienced a slower growth trajectory at 3.8 percent, while multichannel retailers rooted in brick-and-mortar retail saw their online sales rise by only 2.5 percent, indicating a lag behind prevailing market trends.
Revenue of Asian platforms increased by 20%
The study revealed that Asian platforms constituted 5.3 percent of online orders in Germany by mid-year.
Notably, one out of every 20 euros spent in online retail is linked to platforms such as Temu, Shein, and AliExpress. In the fashion domain, these platforms represent an even more dominant force, capturing 16 percent of total orders.
Revenues from Asian platforms in Germany surged by an impressive 20 percent, significantly outpacing overall market growth.
‘Goods no longer reach us in a haphazard manner, but are shipped in containers and then distributed in Europe.’
The bevh anticipates that the newly instituted parcel tax on imports will exert minimal influence on the market supremacy of these platforms.
“The levy is unlikely to heavily impact low-cost imports from Asia. Suppliers are already initiating the establishment of their own logistical frameworks within Europe.
Consequently, goods are now shipped in an organized manner via containers, rather than arriving haphazardly in individual parcels that are difficult to monitor,” stated Alien Mulyk, Chief Executive at bevh.
6% used AI when looking for product information
During the first half of the year, nearly 6 percent of online shoppers utilized artificial intelligence to seek information prior to making a purchase.
In the second quarter, 31.2 percent of 2,500 online customers reported consulting chatbots for guidance.
However, only 12.7 percent indicated they would follow a bot’s recommendation without further product investigation, and a mere 9 percent expressed willingness to permit an AI agent to autonomously execute purchases.
Source link: Ecommercenews.eu.
