App Annie & Kantar Retail: Top Retailers & The App Economy in Germany

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App Annie & Kantar Retail Top Retailers & The App Economy in Germany December 2014

Transcript of App Annie & Kantar Retail: Top Retailers & The App Economy in Germany

App  Annie  &  Kantar  Retail    

Top  Retailers  &  The  App  Economy  in  Germany  December  2014  

 App  Annie  &  Kantar  Retail:  Top  Retailers  &  The  App  Economy  in  Germany  

Summary  Germany  is  one  of  the  world’s  most  sophisticated  retail  markets.  Known  for  a  highly  

developed  logistics  structure,  excellent  productivity  rates  and  an  internationally  competitive  

infrastructure,  Germany  has  become  a  popular  environment  for  retail  businesses  worldwide.  

The  evolution  from  e-­commerce  to  m-­commerce  is  well  underway  in  Germany  and  both  

domestic  and  international  retailers  have  started  exploring  opportunities  and  challenges  that  

new  technologies  bring  with  them.  

Many  of  the  top  retailers  in  Germany  have  already  created  apps  that  have  proven  to  be  an  

important  and  effective  part  of  their  growing  businesses.  These  apps  offer  unique  

engagement  functionality  for  customers  and  provide  better  shopping  experiences.  While  many  

of  these  apps  are  similar  in  the  basic  features  they  offer,  there  is  still  much  opportunity  for  

those  who  continue  to  invest  in  a  well  thought  out  and  innovative  mobile  strategy.    

At  this  stage,  there  are  still  specific  challenges  to  overcome  in  Germany.  As  the  most  

cash-­intensive  economy  worldwide,  Germans  have  yet  to  fully  embrace  alternative  payment  

systems,  especially  paying  through  mobile  apps.  Subsequently,  Germans  currently  tend  to  

use  retail  apps  primarily  in  ways  that  enhance  their  overall  shopping  experience  —  apps  that  

feature  special  offers  or  some  sort  of  novelty.  However,  as  more  apps  are  released  that  offer  

creative  and  secure  ways  to  engage  with  their  users,  it  is  likely  they  will  succeed  as  evidenced  

by  several  of  the  top  retail  apps  highlighted  in  this  report.  

 http://www.appannie.com/intelligence/ 1  

 

 

 

 App  Annie  &  Kantar  Retail:  Top  Retailers  &  The  App  Economy  in  Germany  

   

Table  of  Contents  1. The  Evolving  Retail  Landscape  in  Germany  

● The  German  Retail  Environment  

● Top  25  Retailers  in  Germany  

 

2. Top  Retail  Apps  in  Germany  

● Top  25  Apps  From  Top  Retailers  in  Germany  

● Primary  Feature  Sets  of  Retail  Apps  in  Germany  

● Retail  Apps  Across  Platforms  and  Devices  

● Retail  Apps  Across  Categories  

 

3. Mobile  Opportunities  and  Challenges  for  Retailers  in  Germany  

● Trending  Retail  Apps  in  Germany  

● The  Next  Big  App?  

● Gamification,  Incentives  and  Rewards  

● Challenges  for  Retailers  in  Germany  

● The  Importance  of  Security  

● An  All-­in-­One  Solution  

 

 

 

     http://www.appannie.com/intelligence/ 2  

 

 

 

 App  Annie  &  Kantar  Retail:  Top  Retailers  &  The  App  Economy  in  Germany  

   

1. The  Evolving  Retail  Landscape  in  Germany    

The  German  Retail  Environment  

Hot  on  the  heels  of  our  report  on  France's  retail  market,  App  Annie  and  Kantar  Retail  are  

excited  to  present  an  in-­depth  look  at  the  current  state  of  mobile  apps  for  retailers  in  

Germany,  and  examine  the  potential  for  mobile  technology  to  reshape  the  industry  in  a  market  

home  to  several  of  the  world’s  largest  retailers.  

   

The  advent  of  e-­commerce  heralded  a  monumental  shift  in  the  retail  industry,  introducing  new  opportunities  and  challenges  to  traditional  retailers.  In  2014,  the  European  online  retail  market  

is  expected  to  exceed  €150  billion,  81%  of  which  is  concentrated  in  its  three  largest  markets  

—  the  United  Kingdom,  Germany  and  France  —  with  Germany  accounting  for  27%  of  the  

market.  In  addition  to  this  positive  outlook,  Germany  also  offers  a  highly  developed  logistics  

infrastructure.  This  environment  makes  Germany  an  important  market  to  consider  for  retailers  

when  thinking  about  challenges  such  as  same  day  delivery  or  the  optimization  of  productivity  

and  efficiency  rates.    

Germany  is  one  of  the  most  popular  global  retail  markets,  not  only  in  the  classic  retail  

environment  of  brick-­and-­mortar  stores,  but  also  in  the  innovative  mobile  retail  space.  

Germany  has  shown  above  average  mobile  proportions  from  online  retail  sales  when  

compared  to  the  rest  of  Europe.  The  share  of  online  orders  made  using  mobile  technology  in  

Germany  is  expected  to  reach  16.8%  in  2014,  which  translates  to  a  market  of  over  €6.6  

billion.  

     http://www.appannie.com/intelligence/ 3  

 

 

 

 App  Annie  &  Kantar  Retail:  Top  Retailers  &  The  App  Economy  in  Germany  

   

Top  25  Retailers  in  Germany  Identified  by  Kantar  Retail  by  2013  Sales  Revenue  in  All  Channels  

Rank   Retailer   Headquarters   Primary  Channel      

1   EDEKA   Germany   Supermarket    

2   Schwarz  Group   Germany   Discounter    

3   REWE  Group   Germany   Supermarket    

4   Metro  Group   Germany   Cash  &  Carry    

5   ALDI  SÜD   Germany   Discounter    

6   ALDI  Nord   Germany   Discounter    

7   Tengelmann  Group   Germany   Supermarket    

8   Amazon   United  States   E-­commerce    

9   Otto  Group   Germany   E-­commerce    

10   dm  drogerie  markt   Germany   Drug  Store    

11   Globus  Handelshof   Germany   Hypermarket    

12   AS  Watson   Hong  Kong   Drug  Store    

13   IKEA   Netherlands   Home  /  Furniture    

14   Karstadt   Germany   Department  Store    

15   Expert  Germany   Switzerland   Electronics  Specialist    

16   Euronics  International   Netherlands   Electronics  Specialist    

17   C&A  Mode   Germany  /  Netherlands   Apparel    

     http://www.appannie.com/intelligence/ 4  

 

 

 

 App  Annie  &  Kantar  Retail:  Top  Retailers  &  The  App  Economy  in  Germany  

   

18   Tchibo  GmbH   Germany   Category  Specialist    

19   H&M   Sweden   Apparel    

20   Norma   Germany   Discounter    

21   Douglas   Germany   Drug  Store    

22   Bauhaus   Switzerland   Home  /  DIY    

23   Coop  Schweiz   Switzerland   Cash  &  Carry    

24   ElectronicPartner   Germany   Electronics  Specialist    

25   Praktiker   Germany   Home  /  DIY    

Source:  Kantar  Retail  

 

Germany  is  home  to  retail's  largest  single  market  in  the  European  Union,  making  the  country  

one  of  the  biggest  players  in  the  world.  Similar  to  France,  Germany  also  shows  a  strong  

presence  for  domestic  retailers  in  the  top  25  as  identified  by  Kantar  Retail.  Over  the  past  

several  years,  the  German  retail  sector  has  shown  consistent  year-­over-­year  growth  in  both  

volume  and  value,  and  the  presence  of  international  retailers  in  Germany  —  such  as  Amazon,  

IKEA  and  H&M  —  has  also  notably  increased.  As  domestic  markets  mature  and  potential  

competition  increases,  even  North  American  retailers  are  looking  to  expand  globally,  keeping  

a  close  eye  on  market  opportunities  in  Germany.  

 

Based  on  data  from  Kantar  Retail,  the  top  7  ranks  are  dominated  by  German  domestic  

companies:  Edeka,  Schwarz  Group,  REWE  Group,  Metro  Group,  ALDI  Nord  &  Süd,  as  well  

as  the  Tengelmann  Group.  These  7  retailers  combined  made  over  70%  of  the  revenue  of  the  

top  25  retailers  listed.  Despite  non-­grocery  retailers  such  as  Amazon  growing  over  15%  year  

over  year,  retailers  with  primarily  grocery  operations  maintain  strong  positions  in  Germany,  

including  Edeka’s  comfortable  lead  over  other  retailers.  

 

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 App  Annie  &  Kantar  Retail:  Top  Retailers  &  The  App  Economy  in  Germany  

   

In  addition  to  the  main  supermarkets  and  discounters,  the  top  25  retailers  in  Germany  cover  a  

variety  of  different  channels,  such  as  department  stores,  electronic  stores,  DIY  and  apparel.  

The  main  domestic  non-­food  retailers  include  the  Otto  Group,  dm  drogerie  markt,  Karstadt  

and  Tchibo.  

 

   2.  Top  Retail  Apps  in  Germany  

Top  25  Apps  From  Top  Retailers  in  Germany  Combined  iOS  &  Google  Play  Downloads,  Q3  2014  

Rank   App   Retailer   iPhone     iPad   Google  Play  

1   Amazon   Amazon   ✓   ✓   ✓  

2   H&M   H&M   ✓   ✗   ✓  

3   Lidl   Schwarz  Gruppe   ✓   ✗   ✓  

4   IKEA   IKEA   ✓   ✗   ✓  

5   IKEA  Catalog   IKEA   ✓   ✓   ✓  

6   Tchibo   Tchibo  GmbH   ✓   ✓   ✓  

7   ALDI  SÜD   ALDI  SÜD   ✓   ✗   ✓  

8   Media  Markt   Metro  Group   ✓   ✗   ✓  

9   OTTO   Otto  Group   ✓   ✓   ✓  

10   Saturn   Metro  Group   ✓   ✗   ✓  

11   ALDI  Nord   ALDI  Nord   ✓   ✓   ✓  

     http://www.appannie.com/intelligence/ 6