Germany’s digital landscape is a fascinating blend of innovation, changing consumer habits, and robust retail sectors.
As one of Europe’s most developed e-commerce markets, it presents a unique opportunity for businesses that can adapt to shifting conditions.
The RetailX Germany 360° report provides an overview of Germany’s online retail market and ranks the country’s top 100 most influential and successful companies. The list includes global brands, omnichannel retailers, and marketplaces that have made significant strides.
So, do you want to see who is the best? How does the German e-commerce scene look? What are the key findings?
We’ve covered all that, so grab your coffee and read on.
The digital landscape in Germany
The German economy, with a GDP of $4.59 trillion, is Europe’s largest and the third largest globally (following the United States and China.)
Despite its strength, the country faced economic contraction in 2023, with a 0.3% decrease due to high energy prices, inflation, and other macroeconomic pressures. However, forecasts are more optimistic for 2024, with predicted growth of 0.3%, and a greater 1% for 2025.
These economic conditions have influenced consumer confidence, particularly in online spending.
In 2023, online sales in Germany fell by 11.8% to just under €80 billion. Multichannel retailers were hit hardest, with an 18.1% decline, though some of this loss was offset by increased sales in physical stores. Interestingly, regardless of these economic challenges, certain segments of the market showed resilience. For example, categories such as groceries and healthcare products saw steady demand, which reflected the essential nature of these goods even in tough economic times.
Internet usage & e-commerce penetration
Germany’s internet usage is impressively high, with 93.42% of the population regularly using the internet by 2023. This is notably above the European average of 88.73% and far surpasses the global average of 70%. This high internet penetration translates directly into online shopping behaviors, with more than 80.57% of German internet users shopping online in 2023.
Source: Germany 360°, RetailX report, June 2024.
The widespread use of the internet has spurred significant e-commerce activity. However, the pace of growth has slowed compared to the rapid expansion seen during the pandemic years.
Source: Germany 360°, RetailX report, June 2024.
What does this mean? While growth has moderated, it remains substantial relative to pre-pandemic levels.
Online vs. offline sales
Germany’s consumers still prefer to shop at malls and high streets – retail revenue generated by brick-and-mortar stores accounted for 88% of retail revenue in 2023. What’s more, over the last five years, the percentage of online to offline sales has only changed slightly.
Source: Germany 360°, RetailX report, June 2024.
But, it is true that the online share of different product sectors varies. Compared to 39% in 2019, 51% of fashion sales are now made online.
Source: Germany 360°, RetailX report, June 2024.
Evolving expectations
German consumers are increasingly demanding when it comes to their online shopping. They expect discounts and promotions, fast and free delivery, seamless mobile experiences, and personalized recommendations. Moreover, 43% of the Top 100 companies offer free delivery with a minimum spend.
This trend is partly driven by the widespread availability of high-speed internet and the proliferation of data-driven marketing techniques.
Regulations
Germany’s digital landscape is also shaped by a strict regulatory environment. Data protection laws, particularly the General Data Protection Regulation (GDPR), are rigorously enforced. Thus, businesses operating in the e-commerce space must ensure that they comply with these regulations to avoid hefty fines and reputational damage.
Additionally, environmental regulations are increasingly influencing e-commerce, with consumers and regulators alike pushing for more sustainable practices, such as reduced packaging waste and carbon-neutral shipping options.
Online purchasing & spending
As of 2024, 29% of shoppers use their smartphones for all online purchases, with an additional 28% utilizing them most of the time. In contrast, only 18% of consumers have never shopped online via smartphone.
Source: Germany 360°, RetailX report, June 2024.
German shoppers vary widely in their monthly online spending. While a small percentage (4%) spends over €1,200 each month, the majority tend to be more conservative. Approximately 43% of online shoppers spend under €120 per month, and 30% spend between €120 and €300.
Source: Germany 360°, RetailX report, June 2024.
Advertising
Consumers can discover products by encountering advertisements across different channels. Television and print ads each influence 21% of consumers, while social media posts, especially on platforms like Instagram, Facebook, and TikTok, are also powerful drivers. Instagram, in particular, has the highest influence, with 53% of consumers having made a purchase through the platform.
Source: Germany 360°, RetailX report, June 2024.
Sustainability
Another prominent feature of German online shopping behavior is the growing expectation for sustainable practices. About 47% of consumers can pay more for products that are environmentally friendly or come from companies with a strong commitment to sustainability.
Source: Germany 360°, RetailX report, June 2024.
Customers and business owners approach sustainability differently in distinct sectors. Look at the industries below to see sustainability purchases in 2023.
Source: Germany 360°, RetailX report, June 2024.
Payment preferences
German consumers show a strong preference for traditional options, with many favoring invoices, bank transfers, and debit and credit cards. Third-party checkout options are more popular, though, favored by 77% of consumers.
Source: Germany 360°, RetailX report, June 2024.
What’s interesting, among Germany’s Top 100 retailers, 30% accept PayPal as a payment option, compared to just 8% that accept Amazon Pay.
Source: Germany 360°, RetailX report, June 2024.
Marketplaces
German e-commerce is dominated by marketplaces. They are favored by German consumers for their:
- extensive product ranges
- competitive pricing
- reliable delivery services
- ability to compare prices
- ability to write and read reviews
Amazon remains the top player, with its strong brand recognition and customer loyalty, while Otto and Zalando have also maintained a significant presence, particularly in fashion and lifestyle products.
Additionally, marketplaces offer robust logistics and customer service, which are crucial factors for German consumers who prioritize reliability and efficiency in their online shopping experiences.
RetailX Germany’s top 100 companies
RetailX Germany’s Top 100 ranking provides a list of the leading companies in the German e-commerce landscape. This ranking is divided into several categories: Elite, Leading, Top 50, and Top 100. Each section represents many interesting brands, so let’s check them out.
Elite Tier
The “Elite” tier represents the pinnacle of retail performance in Germany. Companies in this category have consistently delivered exceptional results, both in online and offline channels, and have built strong customer loyalty.
The Elite category includes major names such as Deichmann, Douglas, H&M, Lidl, Rewe, and Rossmann.
These brands are loved by German consumers for their wide range of products, competitive pricing, and robust omnichannel strategies that seamlessly integrate online and offline experiences. Their ability to adapt to market trends and consumer preferences has solidified their positions at the top of the market.
Leading Tier
The “Leading” tier includes companies that have shown strong growth and are highly regarded in the market but have not yet reached the elite level.
This category includes well-known brands such as Amazon, Apple, Bauhaus, Bershka, Christ, DM, Euronics, Hornbach, Hunkemöller, LEGO, Nespresso, Netto, OBI, POCO, Saturn, Tchibo, and Zara.
Top 50 and Top 100 Brands
The Top 50 and Top 100 categories include a mix of established brands and rising stars in the German market.
The Top 50 features brands like Adidas, Decathlon, IKEA, Otto, Puma, S.Oliver, Samsung, SportScheck, Thomann, and Zalando.
In the broader Top 100, additional brands: & Other Stories, AboutYou, Foot Locker, Google, Massimo Dutti, Monki, Sony, Wayfair, Westwing, and Zooplus.
The RetailX Germany top 100 list looks as follows.
Source: Germany 360°, RetailX report, June 2024.
From fashion giants like Zalando and H&M to technology leaders such as Google, HP, or Saturn, these companies understand their customers’ needs and continuously innovate to meet them.
Also, the diversity in the Top 100 ranking highlights the multifaceted nature of the German retail market. Companies are categorized across sectors:
- Fashion
- Consumer electronics
- Multi-sector
- and Software
There are also different business types, like marketplaces, brands, and retailers. Their headquarters are located in Germany or in another country.
The below category analysis presents the categories of the Germany Top 100 and web traffic to the Germany Top 100 by category. Here is a detailed view.
Source: Germany 360°, RetailX report, June 2024.
Key learnings
- Germany’s e-commerce market remains robust and continues to grow despite economic challenges.
- Fashion is the leading sector in Germany’s Top 100 retail companies.
- Multichannel retailers succeed by offering a comprehensive shopping experience across various categories.
- German consumers prioritize flexibility, reliability, transparency, and security in their online shopping experiences.
- The integration of online and offline channels is crucial for success in the competitive German retail area.
- Mobile shopping is rising slowly, with a growing number of German consumers using smartphones for online purchases.
- Sustainability is increasingly important, with many consumers prepared to pay more for eco-friendly and ethical products.
- Third-party checkout services and traditional payment methods remain the most popular among German online shoppers.
Conclusion
As we conclude our exploration of Germany’s digital landscape and the Top 100 retail companies, it’s clear that the market is shaped by a blend of tradition and innovation. If you want to make a name for yourself in this country, you need to realize this.
Moreover, the Top 100 ranking is more than just a simple chart – it is a reflection that success is possible. This list shows how companies that prioritize sustainability, reliability, and innovation are gaining popularity and loyalty among buyers. So, take a cue from the best, evaluate your strategy, make needed changes, and fight for your place in the Top 100!
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