Germany is the fourth largest economy in the world and number one in the European Union, (Germany contributes to 28% of the Gross Domestic Product of the European Union). Business Development Germany says that “The country’s economy is largely fueled by its service sector, including the tourism and banking industries. The industry contributes to almost 70% of the country’s GDP and employs around 72% of the working population” Its total population is approximately 82 million people, so it has become one of the countries with the highest consumption rates in the European Union and second-lowest unemployment rate.
According to Adobe Spark, “Germans are being good at managing money, with a strong propensity to save and invest, following a mindset ‘save now, have later’, rather than ‘have now, pay later’. German consumers today still prefer to use cash, with Germany remaining one of the most cash-intensive advanced economies on earth”.
So, we can for sure say that German consumer is very concerned about his future and the quality of life he will have then.
Research from Mintel revealed that “as many as 93% of German consumers have shopped online in the last year (2017). Furthermore, it appears that older consumers aged over 55 are beginning to realize the advantages of shopping online. Indeed, the proportion of over 55s having made an online purchase reached 90% in 2017”.
But contrary to their online shopping habits, the use of social networks is not as high in Germany as in other countries (in fact, it is considerably lower). This may be due to the need for privacy inherent in the German consumer. Concerns about how their data will be used is an important factor, in fact there are strict laws governing how their personal data is collected, used and shared.
According to Adobe Spark, “Germans tend to view the Internet as a source of information and use it more as a passive form of communication. Whilst online privacy is limiting social media take up, German consumers’ desire for low prices and convenience is driving growth in the value of internet retailing with dramatic growth in the value of mobile internet retailing in recent years. Germany has the largest number of online buyers in Europe – 71% of the German population aged 14 and above shop online, representing some 50 million people”.
German consumers have high spending power. Santander Trade says that “Consumers over 50 years of age constitute the biggest high buying power group, with 50% of the buying power per capita. This results in very high demand for products related to this part of the population (health, entertainment, etc.). The German consumer shows a high tendency to compare prices and use discounted shops”.
German consumers are accustomed to comforting and convenience (mainly because they can afford this kind of lifestyle), however, trends show that more and more consumers are becoming aware of their choices regarding how environmentally friendly they are the products they want.
Remember, if you would like to introduce your product or service to Germany, Infinitus can help you! Our experience covers areas such as Consumer goods, Biotech, ICT, Education, Natural products, OTC products, Pharmaceutical products, and food and beverages industries.