German online retail market to increase at a CAGR of 12.57% through 2017

Press Release   •   Dec 06, 2013 13:35 GMT

Revenues within the German online retail market rose from EUR9.4 billion in 2007 to EUR21.3 billion in 2012, increasing at a compound annual growth rate (CAGR) of 17.88%.

This rapid pace of growth is set to slow over the next five years, but the German retail market is still set to exhibit a very healthy CAGR of 12.57%, and will make up 8% of the country's total retail market by 2017.

The German online retail market is the second largest in Europe.

In Germany the distinction between online and offline behaviour and approaches to retail is still strong -- many retailers maintain strong channel separation, few offer any form of multichannel shopping incentives such as "click and collect," and shoppers even prefer to pay differently online, with PayPal outstripping any other payment method online.

Smartphones and tablets are the major growth accelerators for online retailing in Germany, with a 158% rise in m-consumers between 2011 and 2013; eMarketer estimates that the number of tablets in Germany will rise from 9.7 million in 2012 to 28.3 million by 2016, added further fuel to this fire of channel growth.

The practical benefits of being able to shop on the move is the key factor driving the growth of mobile shopping in Germany, and increasing numbers of retailers are offering apps and mobile-optimised websites to further facilitate interactive shopping and spur further growth. and eBay are dominant forces, with major German consumer brands selling through those sites, and others following suit creating their own marketplaces.

While eBay and Amazon see strong sales in Germany, their influence extends beyond their direct sales as many German web shoppers turn to these sites ahead of search engines to research products. Major retailers such as Conrad are trying to leverage this consumer behaviour.

For more information on the German online retail market, see the latest research: German Online Retail Market

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