Trapped in the quagmire of inflation, another European market lowers its e-commerce growth expectations!

According to a recent statement released by Commerzbank ( HDE) , high inflation and low consumer confidence are expected to further curb the growth of Germany's e-commerce industry .

It is understood that Commerzbank has lowered its previous forecast for online revenue growth in Germany. Now, Commerzbank believes that online consumer spending in Germany this year will reach 89.4 billion euros, an increase of 5.8% over the previous year. This forecast is lower than the initial forecast of 8% growth.

The German Commercial Bank explained that there are two main reasons for lowering the forecast for the growth rate of online consumption. First, the current inflation pressure in Germany has remained high, and second, the consumption desire of German consumers has obviously decreased.

Stephen Tropp, deputy director of the bank , said: " Both online and offline retail in Germany are facing severe challenges. The current willingness of German consumers to shop has dropped sharply, partly due to the impact of the Russian-Ukrainian war.

Despite this, Commerzbank still expects online revenues in Germany to grow slightly this year, even after deducting the impact of inflation, with an estimated increase of around 2%.

Last year, online spending in Germany shrank by 2.5%, or 2.2 billion euros, after two years of growth of 27.5 billion euros.

Furthermore, Commerzbank highlighted the significant growth in online sales in the grocery category, which grew 8% in Germany last year despite an overall decline in online spending.

However, grocery products still account for a relatively low proportion of online sales, currently only around 4.3%, indicating that there is much room for development in the future.

In contrast, online sales of fashion accessories and consumer electronics accounted for a much higher proportion, more than 40% combined. Both categories are popular for online shopping.

For cross-border sellers, the German market has clearly not shown any signs of warming up in the short term, so if you want to make a layout, you need to consider carefully.

Germany

E-commerce