Table of Contents
Executive Summary
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- The market
- Consumer spending
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- Figure 1: Germany: Consumer spending on clothing and footwear (incl. VAT), 2014-19
- Sector size and forecast
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- Figure 2: Germany: Specialist clothing retailers, sales growth, 2014-19
- Inflation
- Channels of distribution
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- Figure 3: Germany: Estimated distribution of spending on clothing and footwear by channel, 2018
- Companies and brands
- Leading players
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- Figure 4: Germany: Annual sales growth of the leading specialist clothing retailers, 2018
- Market shares
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- Figure 5: Germany: Leading specialist clothing retailers, sales as % of all spending on clothing and footwear, 2015 and 2018
- Online
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- Figure 6: Germany: Online sales of clothing, 2014-19
- The consumer
- Where they shop for clothing
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- Figure 7: Germany: Channels used for buying clothes in the last 12 months, June 2019
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- Figure 8: Germany: Retailers used for buying clothing in the last 12 months, June 2019
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- Figure 9: Germany: Non-specialist stores used to shop for clothing, June 2019
- Attitudes to shopping for clothing
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- Figure 10: Germany: Attitudes to shopping for clothing, June 2019
- What we think
Issues and Insights
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- Combining online and offline as a strategy for growth
- The facts
- The implications
- Germans enjoy shopping for clothes and move away from ‘fast fashion’
- The facts
- The implications
The Market – What You Need to Know
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- Market for clothing shrinks 0.5%
- Clothing specialists’ sales drop by 1.8% in 2018
- Inflation rises further to 1.9% in 2018
- Specialists continue to dominate the clothing sector
Consumer Spending
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- Figure 11: Germany: Consumer spending on clothing and footwear (incl. VAT), 2014-19
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Sector Size and Forecast
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- Sales decline for the specialists in 2018
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- Figure 12: Germany: Specialist clothing retailers, sales (excl. VAT), 2014-19
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- Figure 13: Germany: Specialist clothing retailers, forecast sales (excl VAT), 2019-24
Inflation
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- Inflation hits its highest point in five years
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- Figure 14: Germany: Harmonised index of consumer prices, annual % change, 2013-18
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- Figure 15: Germany: Harmonised index of consumer prices, annual % change, January 2018 – August 2019
Channels of Distribution
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- Specialists continue to dominate sales
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- Figure 16: Germany: estimated distribution of spending on clothing and footwear by channel, 2018
Companies and Brands – What You Need to Know
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- Signs of recovery from the past two years
- Number of outlets declines further
- H&M remains the leader in spite of decreasing sales
- Online share of clothing spending resumes growth
Leading Players
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- Signs of recovery from the past two years
- Primark’s prices raise controversy in Germany
- C&A undergoes change in management again and aims for sustainability
- Zalando continues to combine online and offline
- Esprit reduces portfolio but no turn-around yet
- Miller & Monroe’s turn to leave the market
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- Figure 17: Germany: Leading specialist clothing retailers, sales (excl. VAT), 2014-18
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- Figure 18: Germany: Leading specialist clothing retailers, outlets, 2014-18
- Figure 19: Germany: Leading clothing specialists, sales per outlet, 2014-18
Market Shares
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- Figure 20: Germany: Leading specialist clothing retailers’ sales as % of all spending on clothing and footwear, 2015-18
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Online
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- Online activity
- Shopping for clothing online
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- Figure 21: Germany: Online purchasing in the last 12 months, 2013-18
- Clothing share of online sales
- 58% shop online
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- Figure 22: Germany: Customers who shopped online or by catalogue for clothing, by age group, June 2019
- Online searches for clothing retailers
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- Figure 23: Germany: Search interest on Google, last 12 months, September 2018 – August 2019
- Leading online retailers
- Otto Group becomes the largest online marketplace for clothing
- One-third of consumers have Amazon Prime membership
- Zalando the leader online among specialists
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- Figure 24: Germany: Estimated online sales of clothing by major retailers, 2016-18
The Consumer – What You Need to Know
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- 58% shopped online for clothing
- C&A is still the most popular specialist in Germany
- Amazon establishes itself as the dominant non-specialist
- German consumers appear to be moving away from fast fashion
- Enjoying the shopping experience is key
- Price and convenience remain important factors
Where They Shop for Clothes
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- 58% have shopped online for clothing
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- Figure 25: Germany: Channels used for buying clothes in the last 12 months, June 2019
- Online buying reaches across the age groups
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- Figure 26: Germany: Channels used for buying clothes in the last 12 months, by age group, June 2019
- Store-based specialists remain dominant
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- Figure 27: Germany: Stores used to shop for clothing, combined nets, June 2019
- Clothing specialists
- Online specialists establish themselves in the market
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- Figure 28: Germany: Specialist retailers used for buying clothing in the last 12 months, June 2019
- Customer profiles
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- Figure 29: Germany: Where they shop for clothing, by average age and household income, clothing specialists, June 2019
- Non-specialists
- Amazon continues to operate as the dominant non-specialist
- Merger of Galeria Kaufhof and Karstadt
- Small share of purchases in supermarkets and hypermarkets
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- Figure 30: Germany: Non-specialist stores used to shop for clothing, June 2019
Attitudes to Shopping for Clothes
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- German consumers appear to be moving away from ‘fast fashion’
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- Figure 31: Germany: Selected attitudes to shopping for clothing, June 2019
- Enjoying the shopping experience is key
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- Figure 32: Germany: Selected attitudes to shopping for clothing, June 2019
- Price and convenience remain important factors
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- Figure 33: Germany: Selected attitudes to shopping for clothing, June 2019
- Attitudes by specialist retailer used
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- Figure 34: Germany: Attitudes to shopping for clothing, by where they shopped in the last 12 months: Specialists, June 2019
- Attitudes by non-specialist used
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- Figure 35: Germany: Attitudes to shopping for clothing, by where they shopped in the last 12 months: Non-specialists, June 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Data sources
C&A
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- What we think
- Making up for lost time online
- Partnering with other brands
- Changes in management
- C&A continues to focus on sustainability
- Company background
- Company performance
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- Figure 36: C&A: Group financial performance, 2013/14 – 2018/19
- Figure 37: C&A: Outlet data, 2013/14 – 2018/19
- Retail offering
Esprit
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- What we think
- Esprit goes green and commits to improve workers’ rights
- Pursuing an “ambitious but realistic plan”
- Esprit resumes expansion in Europe
- Company background
- Company performance
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- Figure 38: Esprit: Group financial performance, 2013/14-2018/19
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- Figure 39: Esprit: Outlet* data, 2013/14-2018/19
- Retail offering
H&M Hennes & Mauritz
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- What we think
- Digital
- Store development
- Company background
- Company performance
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- Figure 42: H&M Hennes & Mauritz: group financial performance, 2013/14-2017/18
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- Figure 43: H&M Hennes & Mauritz: outlet data, 2013/14-2017/18
- Retail offering
Grupo Inditex
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- What we think
- Growth from a combination of online and offline channels
- Diversification and dedicated content on social channels
- Inditex’s new strategy focuses on sustainability
- Company background
- Company performance
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- Figure 44: Grupo Inditex: sales and outlets by format, 2018/19
- Figure 45: Grupo Inditex, performance by brand, 2017-19
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- Figure 46: Grupo Inditex: group financial performance, 2013/14-2018/19
- Figure 47: Grupo Inditex: outlet data, 2013/14-2018/19
- Retail offering
KiK
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- What we think
- Bricks-and-mortar makeover now almost complete
- Eastern Europe markets driving sales growth
- Online sales and website visitors up
- Company background
- Company performance
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- Figure 48: KiK: Group financial performance, 2014-18
- Figure 49: KiK: Outlet data, 2014-18
- Retail offering
Primark/Penneys
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- What we think
- European expansion continues
- Offline business model could hold back growth
- Greater focus on experience could point the way forward
- Growing sentiment against fast fashion is forcing change on the business
- Where now?
- Company background
- Company performance
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- Figure 50: Primark/Penneys: group financial performance, 2014/15-2018/19
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- Figure 51: Primark/Penneys: outlet data, 2014/15-2018/19
- Retail offering
TJX International (TK Maxx Europe)
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- What we think
- A shift in focus?
- A need to push the digital side of the business
- Where now?
- Company background
- Company performance
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- Figure 52: TJX International (TK Maxx Europe): Group financial performance, 2014/15-2018/19
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- Figure 53: TJX International (TK Maxx Europe): Outlet data, 2014/15-2018/19
- Retail offering
Zalando
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- What we think
- Selling more products, slower revenue growth
- Zalando continues to succeed by combining online and offline
- Zalando’s circular fashion joins the physical world
- Zalando expands beauty range to five new markets
- Average basket size is still decreasing
- Zalando Plus loyalty scheme expanded
- Zalando trials robots for customer orders
- Moving away from own brands
- What next?
- Company background
- Company performance
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- Figure 54: Zalando: group financial performance, 2013-18
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- Figure 55: Zalando: key metrics, 2016-H1 2019
- Retail offering
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