A new focus study by IFH FÖRDERER analyses current consumer sentiment and trends in Germany. The conclusion: Consumers are more optimistic in 2024. The focus on price and offers is declining, while emotional and spontaneous purchases are becoming increasingly important, resulting in a retail volume increase of 23 billion euros between October 2023 and July 2024.
Photo: Dreamstime.
Does the normalization of inflation also bring about a normalization of consumer sentiment?
The new focus study by IFH FÖRDERER examines this question and the implications for retail and consumer trends through two extensive surveys in Germany. The findings indicate that consumers' economic uncertainty has decreased in summer 2024 compared to autumn 2023. This shift is reflected in purchasing behaviour: people are paying less attention to offers (2023: 83%; 2024: 79%) and are making more spontaneous purchases (2023: 67% fewer spontaneous purchases; 2024: 63%). Nevertheless, German retail is still in crisis mode but can now benefit from less pronounced price awareness and more impulsive, spontaneous consumer behaviour.
'The crisis mood is brightening—slowly but noticeably. This naturally influences how, what, and where things are bought and what becomes consumer trends. These are not just hypes like Temu or Shein, whose future importance will also be determined by politics, but also new technologies, sustainability, and above all the 'wow factor'—the experience,' says Prof. Dr. Werner Reinartz from the University of Cologne, director of IFH FÖRDERER and author of the study.
How do people buy in Germany?
In a country with a traditionally strong focus on price, in October 2023, the majority considered themselves rational and structured buyers (68%), while around a third (32%) identified as emotional and spontaneous buyers. In summer 2024, the majority still belonged to the rational-structured group (65%), but now more people consider themselves emotional buyers (35%). The share of spending on impulsive and spontaneous purchases has significantly increased over the past ten months, now standing at a sales volume of 204 billion euros—an increase of 23 billion euros compared to October 2023. The group of rational and structured buyers lost eight billion euros in sales during this period.
Shopping pleasure through experience
For retailers, the reduced focus on price and the increase in emotional shoppers who enjoy being inspired create new potential in various areas. This shift affects not only the design of the shopping location—whether online through an appealing customer journey and a well-curated range, or in-store through digital services like self-scanning checkouts—but also sustainability as a business model (second-hand) or service (repairs, rentals), which can become added-value experience factors.
'Competition is getting tighter, making it all the more important for retailers to differentiate themselves. Whether it's a café in a brick-and-mortar store with a play area for children or a technically appealing and uncomplicated, fully automated payment process at the point of sale—a good shopping experience stays in the mind,' advises Prof. Dr. Werner Reinartz.
More information:
IFH KOLN
www.ifhkoeln.de