Electrical Goods Retailing - Germany - February 2016


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Mintel

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When buying online consumers appreciate not just the low prices, but also how easy the whole process has been made. The store-based specialists have finally realised that they need to offer e-commerce to compete, but the winners will be those that effectively leverage the competitive advantage of their store networks and staff expertise, combining it with technology, both in-store and online, to enable customers to buy what they want, when they want, how they want.

Table of Content

Overview

What you need to know
Areas covered in this report

Executive Summary

The market
Spending and inflation
Figure 1: Germany: Annual % change in total household expenditure and expenditure on electrical goods, 2011-15
Figure 2: Germany: Consumer prices, annual % change, 2011-15
Channels of distribution
Figure 3: Germany: Estimated distribution of spending on electrical goods, 2015
Sector size and forecast
Figure 4: Germany: Annual % change in all retail sales (excl fuel) and electrical specialists sales, 2010-15
Leading players
Key metrics
Market shares
Figure 5: Germany: Leading specialist electrical goods retailers, % share of total spending on electricals, 2014-15
Online
The consumer
Where they shop
Figure 6: Germany: Where they bought electrical goods in the last 12 months, in-store versus online/catalogue, January 2016
Levels of satisfaction
Figure 7: Germany: Levels of satisfaction with last electricals retailer purchased from, January 2016
What we think

Issues and Insights

Closing the loop on the customer journey
The facts
The implications
Amazon is raising the bar for customer expectations
The facts
The implications

The Market – What You Need to Know

Consumer spending up but electricals not keeping pace
Audio-Visual spending down
Inflation at its lowest level since 2009
Channels of distribution
Sector size and forecast

Spending and Inflation

Consumer spending drives economic growth
Spending on electricals not keeping up
Figure 8: Germany: Consumer spending on electrical items (Incl. VAT), 2010-15
Inflation
Figure 9: Germany: Consumer prices, annual % change, 2011-15
Figure 10: Germany: Consumer price inflation on electrical items, annual % change, July 2014-Dec 2015
Unit volumes
Figure 11: Germany: Main electricals market, unit volumes, 2011-19

Channels of Distribution

Online pureplays continue to grow
Figure 12: Germany: Estimated distribution of spending on electrical goods, 2013-15
Figure 13: Germany: Estimated distribution of spending on electrical goods, 2013-15

Sector Size and Forecast

Specialists catching up with non-specialists
Figure 14: Germany: Electricals retailers sales, excl. VAT, 2010-15
Figure 15: Germany: Electricals retailers sales, Forecasts, excl. VAT, 2015-20
Figure 16: Germany: Electrical specialists’ sales as a share of total spending on electricals, 2010-15

Leading Players – What You Need to Know

Media Markt/Saturn continues to dominate
Buying groups maintain their popularity
Market shares
Online sales
Amazon dominates online

Leading Players

Media Markt/Saturn is the dominant specialist
Buying groups remain popular
Telefonica’s acquisition of E-Plus increases its handset sales
Figure 17: Germany: Leading specialist electrical retailers sales, 2013-15
Figure 18: Germany: Leading electrical retailers, outlets, 2013-15
Sales per outlet
Figure 19: Germany: Leading electrical retailers: Estimated sales per outlet, 2013-15

Market Shares

Media Markt/Saturn grows its market share
Figure 20: Germany: Leading electrical retailers, market shares, 2013-15

Online

Online activity
Figure 21: France: Online buyers in last 12 months of electrical items, 2011-15
Online sales
Leading online players
Figure 22: Germany: Where they bought electrical goods online in the last 12 months, January 2016

The Consumer – What You Need to Know

Almost three-quarters bought from a specialist
Amazon and Media Markt dominate the sector
Specialists remain a long way behind online
Consumers are satisfied with prices and products
Less satisfied with service
Amazon customers are most satisfied

Who is Buying?

Men more likely to buy than women
Figure 23: Germany: Purchasing of electrical goods in the last 12 months, by gender, January 2016
A broad appeal but most popular amongst the young
Figure 24: Germany: Purchasing of electrical goods in the last 12 months, by age, January 2016

Where They Shop for Electrical Goods

Media Markt/Saturn and Amazon dominate the sector
Grocery stores a long way behind
Figure 25: Germany: Where they bought electrical goods in the last 12 months, January 2016
Specialists remain a long way behind online
Figure 26: Germany: Where they bought electrical goods in the last 12 months, in-store versus online/catalogue, January 2016
Customer profiles
Figure 27: Germany: Where they bought electrical goods, by age and income, January 2016

Levels of Satisfaction

Consumers are happy with quality, price and range
More work to do on offering service
Figure 28: Germany: Levels of satisfaction with last electricals retailer purchased from, January 2016
Satisfaction with specific retailers
Media Markt/Saturn
Figure 29: Germany: Those agreeing they were satisfied at MediaMarkt/Saturn relative to electrical retailer average, January 2016
Amazon
Figure 30: Germany: Those agreeing they were satisfied at Amazon relative to electrical retailer average,
Specialist Retailers (excluding Media Markt/Saturn)
Figure 31: Germany: Those agreeing they were satisfied at any specialist retailer (excluding MediaMarkt/Saturn relative to electrical retailer average, January 2016
Any non-specialist
Figure 32: Germany: Those agreeing they were satisfied at any non-specialist relative to electrical retailer average, January 2016

Amazon Europe

What we think
An evolving offer
Amazon Prime extends its breadth and reach
A sense of occasion
Product development continues
Delivery gets quicker, but pushes fulfilment costs higher
Click & Collect points limited to US universities
Looking ahead
Company background
Company performance
Growth slows in Europe
Figure 33: Amazon.com Inc: Group financial performance, 2010-15
Sales mix
Figure 34: Amazon: Composition of net sales, 2015
Retail offering

AO World

What we think
Launching in the Netherlands…
and possibly Austria
Collect+ deal widens delivery options
Enhanced website features
Expanding audio visual product offering
AO.de sales progressing satisfactorily, but requiring big investment
Company background
Company performance
Figure 35: AO World Plc: Group financial performance, 2011/12-2014/15
Retail offering

Apple Retail

What we think
It’s all about the iPhone
The importance of innovation
Apple stores an important to success of the brand
Company background
Company performance
Worldwide
Figure 36: Apple Retail: sales and operating profit, 2011-15
Figure 37: Apple Retail: Outlet data, 2010/11-2016
Apple Retail UK
Figure 38: Apple Retail UK: Group financial performance, 2009/10-2014/15
Figure 39: Apple Retail UK: Outlet data, 2010/11-2016
Figure 40: Apple Retail: European stores, 2014-16
Retail offering

Conrad Electronic

What we think
New service concept
Meeting increased online and retail store demand
B2B push on back of small business reputation
Company background
Company performance
Figure 41: Conrad Electronic Germany: Group financial performance, 2010-15
Figure 42: Conrad Electronic: Outlet data, 2010-15
Retail offering

E-Square

What we think
Weaknesses
Other businesses
Company background
E-Square
Electronic Partner
E-Square members
Figure 43: E-Square members, 2015
Company performance
Figure 44: E-Square: Estimated retail sales, 2011-15
Figure 45: E-Square: Members’ approximate store numbers, by country/region, 2011-15
Germany
Other Germany
Denmark
Finland
France
Greece
Italy
Portugal
Spain
UK
Ukraine
Kazakhstan

Euronics International

What we think
Company background
Company performance
Figure 46: Euronics International: Group financial performance, 2010-14
Figure 47: Euronics International: Outlet data, 2010-14
Euronics membership
Figure 48: Euronics: Members, countries and trading names, 2016

Expert Europe

What we think
The up-sides
The downsides
Company background
Online
Figure 49: Expert International, online shopping availability, 2016
Company performance
Figure 50: Expert Europe: Estimated sales at retail, excl. VAT, 2011-15
Figure 51: Expert Europe: Outlet data, 2011-15
Expert Germany
Expert Italy
Expert Spain
Expert France
Retail offering
Store formats

Media-Saturn

What we think
Increasing the channels to market
Adding new store concepts
Market-leading delivery services
Encouraging innovation
Company background
Company performance
Figure 52: Media Markt/Saturn: Group financial performance, 2010/11-2014/15
Figure 53: Media Markt/Saturn: Outlet data, 2010/11-2014/15
Retail offering

Appendix – Data Sources, Abbreviations and Supporting Information

Abbreviations
Data sources

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