German Retail Market Overview
Germany is one of the largest consumer markets in Europe, in terms of population size and purchasing power. As a result, the German retail market has been witnessing a stable growth over the past few years and is expected to do so in the coming years. However, the ongoing shift towards a consumer-driven economy is compelling companies in the German retail market to find new ways to delight customers and strengthen loyalty. Also, identifying hidden opportunities in the market and understanding competitive threats is becoming imperative for companies in the German retail market to sustain a leading edge in today’s competitive marketplace.
This success story highlights how our market trend analysis engagement helped a retail company to achieve huge success and gain a leading edge in the German retail market.
The client is a retail company, headquartered in Germany.
The client, a retail company, was finding it difficult to adapt to the rapidly changing market trends and customer behavior in the German retail market. Due to this, they faced difficulties in optimizing their marketing campaigns and investments. As such they wanted to stay updated on the latest industry trends and regional economic developments through comprehensive research and analysis. They approached the experts at Infiniti Research to leverage their expertise in offering market trend analysis.
German retail market challenge #1: Emphasize on strategies to enhance CX
The client noted that major companies in the German retail market constantly altered their layout and shelving to emphasize more on improving customer experience. In addition, supermarkets invested heavily into private brands to compete better in the German retail market. The client, therefore realized the need to employ a sound discounting strategy to acquire new customers and enhance their market share. With Infiniti’s market trend analysis solution, they wanted to keep pace with all the market developments and discounting strategies adopted by their competitors.
German retail market challenge #2: Rise of home-delivery services
Rise of home-delivery grocery services posed major challenges for the company. This also compelled the client to revamp their traditional in-store business model and focus more on delivering groceries directly to consumer homes. The client, therefore, wanted to identify the business models employed by the top retailers in Germany.
German retail market challenge #3: Rising omnichannel retail
With digitization becoming one of the popular retail market trends in Germany, traditional advertising models no longer helped the company to drive sales and market share. The client, therefore, realized the need to focus more into omnichannel strategies to better reach their customer segments. To do so, they wanted to identify the latest trends in marketing in the German retail market. Also, they wanted to engage with customers in a personalized manner, driving brand and customer loyalty.
German retail market challenge #4: Rising aging German shoppers
With the German population growing older, major companies in the German retail market started rethinking store layouts to better serve older customers and enhance their experience with the brand. The client, therefore, wanted to identify common trends in their customer buying behavior and spending patterns to devise a targeted marketing approach for them. In addition, they wanted to revamp their store layouts according to their customers’ requirements.
With over 15 years of experience in working with clients in the retail sector across the globe, our experts helped the client in their research and information needs.
The initial phase of the engagement involved a market research study of the German retail market. The factors such as regional market developments, industry innovations, and investment opportunities were taken into consideration during the market research.
The next phase of the engagement involved market scanning and monitoring analysis. In this phase, our experts helped the client to stay on top of all the market developments and identify potential opportunities. Our experts also carried out a competitive intelligence study, where they helped the client to analyze the business strategies of their key competitors. Furthermore, by conducting a competitive benchmarking study, our experts helped the client to analyze their competitors’ strengths and weaknesses. Also, we helped the client to understand areas where they lacked compared to the leading companies in the German retail market.
Lastly, by conducting product research engagement, our experts helped the client to analyze the complete product development lifecycle, trade-offs, and gain insights on product-specific revenues to boost value proposition.
By gathering comprehensive insights into the retail market trends and lucrative opportunities, the client was able keep pace with the fast-changing marketplace. They were also able to differentiate their products to drive sales. Furthermore, the insights obtained from Infiniti’s market trend analysis helped the client to efficiently invest the company’s capital and resources into lucrative market opportunities. In addition, they were able to devise a sound marketing strategy.
Also, the client was able to gain maximum traction from consumers by introducing products meeting the market demand. In addition, the company was able to achieve huge success in the German retail market and enhance market share by 23%.