Is the market completely collapsed? This category still has unlimited business opportunities

In early August , data from the German Federal Statistical Office showed that due to the impact of inflation, the Russia-Ukraine conflict and the new crown epidemic, Germany's retail sales in June this year actually fell by 8.8% compared with the same period last year . This was the country's largest year-on-year decline in retail sales since 1994 .

Compared with the first quarter, Germany's economic output officially stagnated in the second quarter and the overall market tended to weaken.

For cross-border sellers who focus on the German market, this economic collapse will undoubtedly make it even more difficult for them to move forward this year.

In addition, price increases caused by high inflation and supply chain problems have greatly affected Germans' consumption enthusiasm.

The survey shows that the products with the highest price increases in Germany are currently in the fields of home furnishings and furniture ( 21.8%), household appliances (17.9%), food, art and decoration (11%) . In contrast , shoes (8%), especially sports and leisure shoes (1.3%), and electronic products and accessories (5%), have not changed much in price .

Since the first half of this year, all major markets, major retail giants, and all categories have experienced negative reactions in terms of profits and demand. However, in Germany, the home furnishing and furniture category, which has always been a favorable category, has fluctuated less and the market feedback is relatively positive .

According to the first quarter financial reports of German online furniture retailers Westwing and Home24, their sales both fell sharply , but they still achieved sales of 111 million euros and 140 million euros respectively .

According to EHI's furniture market research , furniture sales in Germany increased by 1.6% last year to nearly 36 billion euros , and the average spending of German consumers on furniture was 423 euros .

Industry experts emphasize that since the outbreak of the COVID-19 pandemic , Germans have increased their investment in housing . At the same time, due to changes in consumption patterns, Germans have been spending more and more on online channels when buying furniture . This has pushed the German furniture online retail market share from 11.5% to 13.1% in twelve months . In 2021, the total value of furniture sold through e-commerce in Germany was 4.72 billion euros, an increase of about 16% over the previous year .

According to YouGov research, 44% of German consumers plan to buy living room furniture in the next 12 months . Among them, 22% hope to buy sofas, tables, etc. online and in physical stores , and 8% rely entirely on online shopping. It is understood that online shopping can achieve their goal of pursuing a higher cost-effective product.

For more than half of customers ( 52%), cheaper quotes are a motivation to buy furniture online. 41% of respondents choose to buy online after viewing or trying the product in store , and one-third ( 34%) of respondents only select and buy furniture online .

According to the Salesforce Shopping Index , German consumers' willingness to spend has dropped by 20% this year compared to the previous year , affected by supply chain bottlenecks and price increases .

Despite this, as furniture is a high-demand product in the German market, there is still broad market space in the future.

Despite facing declining sales and profits in the first half of this year, several German furniture e-commerce giants such as Westwing and Home24 have announced that they will continue to increase market investment, believing that the current challenges are only short-term macroeconomic challenges .

The current market is indeed full of crises, but opportunities and challenges coexist. By understanding the market, sellers may be able to tap into more business opportunities in adversity.

Germany

furniture