Electrical Goods Retailing - Germany - February 2017

OVERVIEW
What you need to know
Areas covered in this report
EXECUTIVE SUMMARY
The market
Spending and inflation
Figure 1: Germany: consumer spending, year on year % change, 2012-16
Channels of distribution
Figure 2: Germany: estimated distribution of spending on electrical goods, 2015-16
Sector size and forecast
Figure 3: Germany: electricals specialists’ sales, year-on-year % growth, 2011-16
Leading players
Key metrics
Market shares
Figure 4: Germany: leading specialist electrical specialists’ estimated shares of spending on electrical goods, 2016
Online
The consumer
What electricals they buy
Figure 5: Germany: types of electrical products purchased, January 2017
How they shop
Figure 6: Germany: how they shop for electricals, in-store vs online, January 2017
Where they shop
Figure 7: Germany: where they shop for electrical products, whether online or in-store, January 2017
What we think
ISSUES AND INSIGHTS
Omnichannel shopping is now the norm
The facts
The implications
How can smaller specialists compete?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Spending on electricals goes negative again
Spending on appliances up
Inflation remains low
Specialists increase their share of spending
Specialists grow their sales
SPENDING AND INFLATION
Solid and steady economic growth
Electricals spending falls
Figure 8: Germany: consumer spending on electrical items (incl. VAT), 2012-16
Inflation
Figure 9: Germany: consumer prices, annual % change, 2012-16
Figure 10: Germany: consumer price inflation on electrical items, annual % change, July 2015-December 2016
PRODUCT MARKET BREAKDOWN
Figure 11: Germany: main electricals markets, volume sales, 2012-16
Figure 12: Germany: main electricals markets, volume sales forecasts, 2016-20
CHANNELS OF DISTRIBUTION
Specialists gain share
Figure 13: Germany: estimated distribution of spending on electricals/electrical goods, 2016
SECTOR SIZE AND FORECAST
Sales via the specialists improve
Figure 14: Germany: electricals specialists’ sales, excl VAT, 2011-16
Figure 15: Germany: electricals specialists’ sales, forecasts, excl VAT, 2017-21
Figure 16: Germany: electricals specialists’ sales relative to all spending on electricals, 2010-16
LEADING PLAYERS – WHAT YOU NEED TO KNOW
Media-Saturn continues to grow
Leading specialists account for a steady share of the market
Online accounts for over a quarter of sales
LEADING PLAYERS
Media-Saturn continues to improve
Buying groups manage low growth
Challenging year for mobile phone companies
AO growing from a small base
Figure 17: Germany: leading specialist electrical retailers, sales, 2014-16
Figure 18: Germany: leading specialist electrical retailers, outlets, 2014-16
Figure 19: Germany: leading specialist electrical retailers, estimated sales per outlet, 2014-16
MARKET SHARES
Figure 20: Germany: leading specialist electrical retailers, estimated shares of spending on electricals items, 2014-16
ONLINE
Online activity and device usage
Shopping online
Figure 21: Germany: online buyers of electrical items in last three months, 2012-16
Online sales
Leading online players
Figure 22: Germany: estimated sales of electricals online by leading retailers, 2014-16
THE CONSUMER – WHAT YOU NEED TO KNOW
70% have bought electricals in the past year
Omnichannel shopping has become the norm
Over half shop at Media-Saturn
Price perception driving online sales
Stores preferred for seeing products and advice
WHAT ELECTRICALS THEY BUY 
70% have bought electrical goods in the past year
Figure 23: Germany: types of electrical products purchased, January 2017
Men more likely to buy electrical goods than women
Figure 24: Germany: types of electrical products purchased, by gender, January 2017
Electrical buyers have higher than average income
Figure 25: Germany: electrical goods purchased, by average age and household income, January 2017
HOW THEY SHOP FOR ELECTRICALS – ONLINE VS IN-STORE
Omnichannel shopping has become the norm
Figure 26: Germany: how they shop for electricals, in-store vs online, January 2017
Women more likely to use stores than men
Figure 27: Germany: how they shop for electricals, in-store vs online, by gender, January 2017
Wealthier shoppers use multiple channels to market
Figure 28: Germany: how they shop for electricals, in-store vs online, by average age and household income, January 2017
Gender can determine how items are purchased
Figure 29: Germany: what they bought by how they shopped, January 2017
WHERE THEY SHOP FOR ELECTRICALS AND WHY 
Specialists and non-specialists evenly split
Figure 30: Germany: where they shop for electrical products, whether online or in-store, January 2017
Media-Saturn dominates in-store shopping
Figure 31: Germany: where they shop for electrical products in-store, January 2017
While Amazon leads online
Figure 32: Germany: where they shop for electrical products online, January 2017
Amazon and Media-Saturn target similar shoppers
Figure 33: Germany: where they shop for electrical goods, by average age and household income, January 2017
Reasons for shopping online
Figure 34: Germany: reasons for shopping for electricals online, January 2017
Women like to compare products
Figure 35: Germany: reasons for shopping for electricals online, by gender, January 2017
Online pureplays trade on a range and price
Figure 36: Germany: reasons for shopping for electricals online, by retailer used, January 2017
Reasons for shopping in-store
Figure 37: Germany: reasons for shopping for electricals in-store, January 2017
Women want to see the products
Figure 38: Germany: reasons for shopping for electricals in-store, by gender, January 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
AMAZON.COM
What we think
Marketplace is growing
Disruptive influence
Does Amazon need stores?
Maturity beckoning?
Where next?
Company background
Company performance
Figure 39: Amazon.com Inc.: group financial performance, 2011/12-2015/16
Electricals sales
Figure 40: Amazon: estimated electricals sales in Europe, 2015-16
Marketplace
Retail offering
AO WORLD
What we think
Broader variety of electrical products
Enhanced online customer experience
Increased brand awareness attracting new customers and driving repeat business
Bolstering logistical infrastructure to better serve customers
European operation to enter profitability in 2020
Company background
Company performance
Figure 41: AO World Plc: group financial performance, 2011/12-2015/16
Retail offering
APPLE RETAIL
What we think
Over-reliance on the iPhone?
A price rise too far?
All about the image
Company background
Company performance
Worldwide
Figure 42: Apple Inc.: sales and operating profit, 2012-16
Apple Retail UK
Figure 43: Apple Retail UK: group financial performance, 2011/12-2015/16
Figure 44: Apple Retail UK: outlet data, 2011/12-2015/16
Figure 45: Apple Retail: European stores, 2014-17
Retail offering
CONRAD ELECTRONIC
What we think
Predictive analytics technology driving m-commerce sales
New delivery service
Local techie support and troubleshooting service tool
The Internet of Things
Company background
Company performance
Figure 46: Conrad Electronic (Germany): group financial performance, 2012-16
Figure 47: Conrad Electronic: outlet data, 2012-16
Retail offering
E-SQUARE
What it does
Company background
Key figures
Members
Figure 48: E-Square membership, 2016
Sales
ELECTRONICPARTNER
What we think
Structural weaknesses
Where next?
Company background
Company performance
Figure 49: Electronic Partner: Group sales performance, 2012-16
Retail offering
EURONICS INTERNATIONAL
What we think
Bringing its members new and innovative products
Brand communication
Bolstering multi-channel proposition
Services add value to physical stores
Company background
Company performance
Figure 50: Euronics International: group sales performance, 2011-15
Figure 51: Euronics International: estimated outlet data, 2011-15
Retail offering
EXPERT EUROPE
What we think
National network, local availability
Strength in common branding is being eroded
Increased focus on brand and product expertise and service…
…and online presence
Where now?
Company background
Company performance
Figure 52: Expert Europe: group sales performance, 2012-16
Figure 53: Expert Europe: outlet data, 2012-16
Retail offering
MEDIA-SATURN
What we think
Looking for opportunities in rentals
The important of the connected home
Services potential
Digital stores
Being proactive with innovation
Redcoon brought pureplay online expertise
Where now?
Company background
Company performance
Figure 54: Media Markt/Saturn: group financial performance, 2011/12-2015/16
Figure 55: Media Markt/Saturn: outlet data, 2011/12-2015/16
Retail offering