Amazon is the go-to place for Germans to do their Christmas shopping. Two-thirds of gift buyers shop at the American online retail giant during this holiday season, according to a new study. And 15 percent of consumers shop on one or more platforms from China, with their potential market share being even larger.
This is based on research by the Nuremberg Institute for Market Decisions (NIM), which surveyed around 1,000 consumers in late November. They were asked where they had bought or planned to buy their Christmas gifts.
Department stores on the decline
Interestingly, only one in three Germans reports buying gifts in physical stores, such as specialty shops, drugstores, and department stores. While department stores were once dominant decades ago, only 20 percent now visit them for Christmas presents.
One in five buys Christmas gifts in department stores
Online department store Amazon, the clear market leader in ecommerce in Germany, is much more popular. Of German gift buyers, 66 percent do their Christmas shopping on Amazon.de – almost two-thirds. Moreover, Amazon’s impact on offline retail in Germany is also significant, as many purchases in physical stores are preceded by a search for information on the platform.
Amazon’s dominance
The figure below illustrates Amazon’s dominance.
It also shows that 15 percent of German gift buyers make purchases on Chinese platforms, with Temu, boasting a penetration rate of 10 percent, being the most popular, followed by Shein (5 percent). Together, these two platforms sell around 3.3 billion euros worth of products in Germany this year, according to another study by the German Retail Federation (HDE).
One in ten Germans shops gifts on Temu
After Temu, particularly popular among people with lower incomes, and Shein, AliExpress (4 percent) and TikTok Shop (2 percent) follow, with TikTok Shop gaining traction in Germany after a hesitant start.
Growth potential
According to NIM, the Chinese platforms still have considerable growth potential in Germany: 30 percent of gift buyers express interest in shopping on these platforms for Christmas in the future, double the number of buyers this year. However, the growth rates of Shein and Temu in Europe have slowed considerably. Amazon grew by 8.7 percent last year in Germany, partly thanks to a significant increase in advertising revenue.
