Question: Characteristics of German consumers?

Answer: 

According to Eurostat, Germany’s population in the age group with high consumption needs (15 to 65 years old) accounts for about 65% ~ 54 million people in 2020. This is the group that determines consumption trends in Germany. 77,4% of the population lives in urban areas, and the cities of Berlin, Hamburg, Munich and Cologne are the most populated.

The average monthly gross income of households in Germany amounted to EUR 4,846, and Germans have an average per capita purchasing power of  EUR 23,766 in 2020 (gfk.com, 2021). German consumers have diverse shopping habits and high demands for essential goods (such as food, clothing, footwear, cosmetics, sports equipment) as well as leisure and luxury products (such as jewelry, vehicles...).

Main consumer products

According to Santandertrade, German consumers spend up to 23.6% of their total spending on housing, water, electricity, gas and other fuels, 14.7% on transport, 10.7% on food and non-alcoholic drinks, 6.8% on furnishings, household equipment, 4.8% on clothing and shoes… Thus, the majority of spending on goods by German consumers is for essential products such as food - clothing - accommodation. Although the consumption structure is not too different from the general situation in the world, consumers in Germany tend to consume goods of higher quality and price than many other markets.

Table: Popular consumer products and services of German consumers

Sector	Percentage
Housing, water, electricity, gas and other fuels	23.6%
Transport	14.7%
Food and non-alcoholic drinks	10.7%
Culture and leisure	9.2%
Furnishings, household equipment, everyday  maintenance of the house	6.8%
Hotels and restaurants	5.5%
Health	5.2%
Clothing and shoes	4.8%
Alcoholic beverages, tobacco and narcotics	3.2%
Communication	2.9%
Education	0.9%
Various goods and other services	12.7%

Source: Santandertrade, 2021

Shopping methods

German consumers are still shopping both in-store (at supermarkets, grocery stores, discounter...) and online (on online stores, e-commerce platforms…). In particular, online shopping has become more and more popular in this country, especially since the COVID-19 epidemic appeared, consumers have tended to switch from in-store shopping to online shopping in order to reduce face-to-face interaction. In fact, Germany is currently one of the largest and the most dynamic online shopping markets in Europe and in the world with 80% of German consumers purchasing online (gtai.de). In addition, in Germany, there is a trend of ROPO (Research Online, Purchase Offline) - consumers research products online and then go to a brick-and-mortar store to buy those products.

Consumer trends

Germany is known as one of the most demanding markets in the world. German consumers are often very selective, conservative and loyal to familiar brands. About 60% of consumers are willing to buy the same brand several times (Santandertrade, 2021). Therefore, Germans often prefer to use local and national products or products originated in the European region. However, German consumers are becoming more open to international goods as e-commerce makes cross-border purchase easier.

When shopping, especially for consumer durable goods, German consumers often research features, origin of goods, and similar products instead of just caring about the price. They are willing to pay a higher price to get a product with higher quality. For these types of products, consumers will prefer to go to the store to check the products, rather than shopping online. In contrast, for everyday products, Germans are likely to care more about price, and they often purchase online because it is easier to compare prices… In addition, Germans are paying more attention to sustainable consumption. They tend to use more humanistic products (such as products made by the disabled, social enterprises...), or organic products, products made from natural ingredients, using less energy quantity….

Factors affecting consumption habits

Advertising media and social media have increasingly influenced consumption trends. Germans use social media as a useful tool to learn about products, and comments on social networks can significantly influence the purchasing decisions of German consumers. According to Eurostat, in 2020, 95% of Germany’s population used the Internet, and 87% of them purchased goods and services online.

Another factor that also affects the general consumption trend in Germany is immigrants in Germany that are currently making up 14.3% of Germany’s population. According to data from Statista.com, in 2020, there were about 2.46 million Asians living in this country (accounting for 22% of the total number of foreigners in Germany), of which the Vietnamese community in Germany is about 103,620 people. This population also has a certain influence on German consumption habits, because for this population, imported goods are considered more attractive than domestic goods.

Source: The Center for WTO and International Trade

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