Business
Tech-wary Germans get hooked with online shopping habit
Global Banking & Finance Review®
Company
By Maria Martinez
BERLIN (Reuters) – In only a few years, Germans have become a nation of online shoppers, with most now turning to devices to buy clothes, groceries and medicines in the wake of the COVID-19 pandemic.
A survey showed that 99% of adults in Germany, where more than 70% of companies still use fax machines, now shop online, with 39% of respondents doing so at least once a week.
This is despite Germans being more negative on technology trends than the European average, with a 2022 McKinsey study finding them particularly critical of hyper-personalisation.
But that is changing, according to the study from the German GfK institute with Mastercard, seen exclusively by Reuters.
Alvaro Pinilla furnished his new apartment in Berlin online, buying lamps, kitchen utensils, rugs and furniture online.
It is the comfort of not having to leave home,” the 30-year-old lawyer told Reuters. “I also think that online prices are as competitive, or even better than, in a physical store.”
Black Friday and Cyber Monday, as well as the impending Christmas season, will mark highs for online trade and Germany’s main retail association HDE expects sales of 87.1 billion euros ($91.66 billion) for the e-commerce industry this year.
“If there’s a week when I haven’t bought anything, my brain tells me ‘time to treat yourself’,” said Pinilla, who plans to take advantage of Black Friday discounts to buy a new coat, boots, scarf and gloves.
The survey of more than 1,000 respondents found that fashion is by far the most popular product category in online retail: Two-thirds ordered clothing and shoes online in the past 12 months, while at the start of the pandemic in 2020 it was 43%.
“I’ve kind of got into the habit of buying online during the pandemic,” Pinilla told Reuters, adding he had got better at finding the things he wanted.
Germany accounted for $37.6 billion of Amazon’s revenue in 2023, making it the company’s biggest international market.
Sarah Schedler also enjoys buying clothes online, because she feels she can find what she needs faster than in a store.
If something is at full price, I usually put it on my wish list and then wait until it’s reduced,” said Schedler, a 29-year-old content manager. “I’m a bit of a sales queen.”
Electronics are the second most popular category for online shoppers, the GfK survey showed, with almost half of Germans ordering these products online this year.
Schedler plans to replace her 10-year-old laptop this Black Friday as she has seen good deals.
“I have the feeling that the prices are somehow lower online, but it could just be my feeling,” she said.
In just four years, online grocery shopping has also risen to 25% from 7% in 2020, while the proportion of people who order personal care products on the Internet has almost doubled, from 18% in 2020 to 35% in 2024, GfK said.
Almost four in 10 Germans prefer to shop on their mobile phone, 10% a tablet and half from a computer, the survey showed.
“Most people always have their smartphone ready … This makes it easy to make spontaneous purchases,” said Peter Robejsek, Mastercard Germany managing director.
HDE estimates sales of almost 47 billion euros were generated via smartphones, which accounted for a record 55% of total online retail sales in Germany last year.
($1 = 0.9502 euros)
(Reporting by Maria Martinez, editing by Miranda Murray and Alexander Smith)
E-commerce refers to the buying and selling of goods or services using the internet. It includes online shopping, electronic payments, and online auctions.
Consumer perception is how consumers view and interpret a brand, product, or service based on their experiences and beliefs.
Retail trade involves the sale of goods or services directly to consumers for personal use, typically through stores or online platforms.
Hyper-personalization is a marketing strategy that uses data analysis and AI to deliver personalized experiences and recommendations to consumers.
Explore more articles in the Business category
