Business opportunity
Market area:
Industry:

Opportunities for Finnish lifestyle brands in Germany

01.11.2018
Germany is the biggest consumer market in Europe. The textiles, garments and shoes market is the second largest consumer market, after the food and beverage. Finnish lifestyle companies match the assortment needs in the German market.

German population is affluent and many of the existing & future design trends suits well to the Finnish offering.

According to Euromonitor, two major themes emerged over the review period and in 2017 in terms of German consumers' purchasing habits. In Germany, discount chains in grocery and non-grocery retailing, as well as bargain hunting in internet retailing, continue to increase.  On the other hand, the trend towards purchasing higher-priced and higher-quality products has also grown, with more consumers treating themselves to premium goods.

Companies and sectors benefiting from this opportunity

Big German interior fair called Trendset has named some main trend for the upcoming winter season such as "Organic revolution", where natural materials are in focus. Other coming trends are "My home is my castle", "Nature in room", "Minimalist luxury and "Made by nature" only to name a few.

For Finnish companies, business potential is big in all lifestyle related product areas such as:

  • Fashion
  • Accessories
  • Furniture
  • Design objects
  • Interior
  • Home textile 

Contacts

If you are a lifestyle company interested in this business opportunity, please contact us for further information:

Sanna Sipilä-Axnix

Advisor

Tel. +43 664 9693213

Sanna.sipila-axnix@businessfinland.fi 

Read more about the opportunity

Retailers face similar challenges all over the globe. There is a growing demand to offer a seamless customer experience at every touchpoint, maximize sales across every channel and device, and live up to their promises regarding product availability and delivery. At the same time, retailers must continuously build their assortment as enchanting as possible

To create a strong retail brand that attracts and retains high valued customers, retailers have no choice but to turn shopping into an outstanding experience. Shopping must be made effortless, relaxing and ultimately enjoyable while offering the customer fascinating products and services. For many businesses, all this is achieved most efficiently in the online marketplace, where customers usually seek for competitive prices and a wider selection of goods. For these reasons, many online marketplaces continuously look for new products to make their assortment more appealing for their customers. On the other side, the brick&mortar business is winning more attractiveness again. The retail shops can be  used as showrooms even the selling will be made online. For the consumers is important to have a possibility to try on the apparels and feel the materials and experience the products before buying.The need to continuously upgrade assortments offer now business opportunities for Finnish lifestyle companies, especially in the German. The earlier published sales lead has already shown excellent results in the German market. 

Germany has the highest share of single-person households in the world, at almost 43% in 2017; while the percentage of people with 'single' status grew from 42% in 2012 to 43% in 2017. Given their lack of family-related expenses, singletons tend to have higher disposable incomes and thus spend highly in discretionary categories such as clothing, leisure, gadgets, communications and travel. 

Average gross incomes of aged 45-49 and aged 50-54 were the highest among all age groups, at €46,925 and €46,924, respectively. This makes them key consumers of a range of premium goods and services, including luxury items, cars and tourism.

According Statista, the revenue in the Fashion segment amounts to €17,502m in 2018. Revenue is expected to show an annual growth rate of almost 8%, resulting in a market volume of €23,581m by 2022. 

The furniture market is an important sector in the German economy, constituting around 7% of the total consumer goods market in Germany and generating almost EUR 30 billion in revenue

 

Average (0 Votes)
No comments yet. Be the first.