News • 20.07.2020

AfterPay: Survey on the shopping behaviour of Germans

German consumers will make a larger share of their purchases online in July

Photo: AfterPay: Survey on the shopping behaviour of Germans...
Source: PantherMedia / stetsik

AfterPay Insights’ end of June research – now covering more 7.400 interviews with German online shoppers – indicates that German consumers will reduce their overall purchases in July. 

But at the same time, German consumers say that they will continue to shift purchases to online channels in July. This means that e-commerce growth will likely further amplify in Germany in July, coming at the expense of purchases in brick-and-mortar stores. 

This is a continuation of the trend that AfterPay Insights saw in June, when German online purchases picked up to +24% in mid-June (compared to early March) – after a period of stabilized and even decreased growth in May. Even though German society has opened up, consumers’ return to brick-and-mortar stores is – so far – not happening very fast. Only 7% of German consumers say they shopped more in physical stores in June, compared to 17% who say they shopped more online. 

German consumers are less worried and have a positive outlook on their personal financial situation in July

AfterPay Insights’ research shows that German online shoppers’ worries have decreased continuously since end of March. Worries about personal health have decreased the most, from 51% at the second half of March to 39% by mid-June. In that same period, worries about the personal financial situation also decreased, from 39% to 31%. From this, we can also conclude that – over the past months - German consumers worries have been more health than finance-focused.

In AfterPay Insights’ surve, 22% of German online shoppers say that their financial situation has become more stressed and 7% say that their financial situation has improved in June. The most important reason for fewer purchases is the need to save money; this is especially evident in the younger age groups. Secondary motivations are the intention to change lifestyle by reducing overall consumption, along with having general worries about the future. And third tier motivations include the risk of becoming unemployed, as well as wanting to pay off mortgages and loans.

However, German consumers remain optimistic about their short-term financial future: 7% of German consumers say that their financial situation is better in June, and 18% say they expect their financial situation to further improve in July. 

Fashion leads German e-commerce purchases in July

When looking at the development of online product categories, Fashion stands out in Germany, as it is the leading category in acquiring new consumers: in the second half of March, 18% of German shoppers made at least one purchase in online Fashion, and this share has grown to 26% by mid-June.

Price and convenience become more important motivations to purchase online

In Germany, finding cheaper prices online has become increasingly more important over time, along with the fact that online shopping offers more convenience. It looks like the functional benefits of online shopping have increased in impact, and are possibly leading to a lasting change. AfterPay Insights will monitor consumer behavior throughout the summer and get back with an update on e-commerce in Germany at the end of July. 

Source: AfterPay

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