Germans are spending more on clothing and there is strong interest in home decoration, which provides a growing market for interior design and furniture.
Due to a trending interest in old values and craftsmanship of high quality as well as a focus on luxury and high profile, the German consumers have grown fond of Danish design.
This is evident in the media where Danish design is often being showcased. The trend of “cocooning” is expected to continue and create further opportunities for Danish design. Also within design and fashion, sustainability is of high importance, which is positive for the image of Danish design.
The demand for design products is higher in the western federal states and the larger cities, e.g. Hamburg and Munich, where disposable incomes are higher.
The German market for design and fashion can be challenging to enter, but is very stable for companies able to adjust to the competitive landscape. This, in combination with the positive prospects for consumption, makes Germany a very interesting market for Danish producers of fashion, design, and interior decoration.
Approximately 9% of Germanys, total retail turnover is spent on clothing and home textiles, making it the second largest retail sector after food (37%). According to figures published by the German Fashion Retail Association (BTE) the turnover within retail has continued to rise in recent years, reaching approximately EUR 59,3 billion gross in 2014. This makes Germany worldwide the 4th largest apparel market, as well as the biggest in Europe. It is forecasted that stable turnover perspective will continue.
One of the unique characteristics of Germany´s retail industry is the wide variety of retail chains. These act as traditional multi-brand retailers but also operate as vertically-integrated companies that sell private labels.
The vast majority of the Top 20 vertically-integrated fashion chain stores can be found in the high streets and shopping centres of Germanys retail cities. The German consumer favours these places to shop for fashion but also large scale fashion stores such as C&A are popular. This makes department stores an interesting option for non-established brands which want to test the German market via a shop-in-shop or concession solution. A total of ca 65.000 wholesale POS´s can be found all over in Germany.
It generally holds true that Germans are aware of their clothing. For many years they have only sought after the classic fashion and classic national and international brands, why these are strongly represented in the German market. The trend is, however, now towards a more casual look, which in recent times has been particularly popular among Germans. This has led to an increase in sales of jeans, knitwear and jackets, while there has been a decline in the categories of shirts, suits and skirts.
Sustainable products are in high demand among Germans and a growing number of consumers attach importance to environmental issues and CSR when buying clothes. A study among 600 German consumers shows that when purchasing products they primarily emphasize quality, but secondly focus on sustainability. In the third place, the factor cost is mentioned. Even lower ranks the product brand, which come in the seventh place.
Functional, elegant and timeless: Scandinavian and especially Danish design convinces through its clean lines and high quality. Although the trend "Danish Design" in recent years has become popular in Germany, this trend from the north is not entirely new. Originally Danish design was a product of the 1950s, when Danish designers focused on functionality and high quality furniture. Today, they contribute Danish furniture with a Nordic peace and relaxation that helps to create comfort in German homes. Many Danish designers have long been "stars" and their works are today design icons. A classic example is Arne Jacobsen, who with his "Egg chair” is to be seen in all design publications in Germany.
The German furniture market is traditionally divided into three categories: Furniture for home - sales, which is absolutely the greatest - suppliers of semi-finished products for the furniture industry as well as furniture and décor objects for the contract market. Danish furniture is sold through a variety of channels like: Sales to shops and chain stores, sales to individual furniture dealers, sales through agents, contract sales for furnishing projects, retailing through franchise stores and Internet sales.
The German market currently accounts for 16% of the total exports of Danish furniture, but several experts believe that the potential is much higher. The German economy develops well compared to many other countries, and it is a huge market with great potential. Today, by far the largest part of the Danish furniture exports goes to northern Germany, partly due to the geographical proximity and logistical advantages. However, southern Germany is very interesting with its high growth potential.
Both cities are in the top 10, when it comes to the places in Europe with the highest purchasing power and have each their own lifestyle!
With a population of 1.8 million, Hamburg is Germany's second largest city and offers a host of attractions: fine art and culture, places of historical interest, exhilarating nightlife, excellent restaurants and shopping opportunities ranging from designer luxury to boho chic. It is true, that the people living in Hamburg have a distinctive attitude to life!
Munich offers culture and tradition, sport and countryside, culinary delights, and Bavarian hospitality. A 'live and let live' approach, stylish elegance and a laid-back lifestyle – the principles by which the people of Munich live their lives. Cosmopolitan and welcoming to visitors from all over the world, who are invited to share in the luxury and zest for life!
Danish design is hot both in Hamburg and Munich, the demand is high and the basis for innovative and international collaborations is increasing. There is room for many more Danish brands in both Hamburg and Munich.