About this report
 
About the market…
 
“Germany has the largest home shopping market in Europe worth €22.16 billion in 2003, both in absolute terms and relative to all retail sales. It is the only country in which mail order accounts for more than 5% of retail sales, with retailers such as KarstadtQuelle and Otto holding 50% of the market. It has the largest direct selling industry in Western Europe and is also furthest ahead in e-commerce, though that is thanks to the efforts of the leading mail order operators.”
 

 
About Mintel’s report…
 
Using the latest consumer research, market size data and trend analysis, Mintel’s European report offers you vital new insight into the current state of the market, its prospects and the attitudes of key target audiences. You can use Mintel’s European market research to:
 

 
Gain a vital overview of the dynamics of the Home Shopping market across the German market
 

 
Ensure that every step of your product development and brand marketing is focused towards real demand and real opportunity.
 

 
Benchmark major consumer trends in the German market.
 

 
Track developing market trends
 

 
Measure market sizes, finds sales opportunities and monitor leading players’ activity
 

 
Intriguing findings include…
 
Mintel estimates that the retail online sector (goods but not cars or services) accounts for around half this total at approximately €5.5 billion.
 

 
almost 42% of respondents had purchased via mail order in the previous 12 months
 

 
Everywhere but Spain showed that more people felt the Internet had made their life easier for shopping since 2001
 

Contents
 

 
Executive Summary – Germany
 

 
Largest home shopping market in Europe
 
Mail order sector hit by the weak retail environment
 
Direct selling outperforms retail market
 
E-commerce growth slowing down
 
Mail order companies lead the market
 
Mail order set to decline further
 
Report Scope
 

 
Home shopping – A definition and methods of selling
 
Figure 1: Home shopping market: Sector type and methods of selling
 
Background Data – Germany
 
Population
 
Figure 2: Germany: Population trends, 1999-2003
 
Figure 3: Germany: Population, by age group and sex, 1999-2003
 
Figure 4: Germany: Households, 2000-02
 
Figure 5: Germany: Regions and major cities, 2002
 
Economy
 
Figure 6: Germany: Gross domestic product, 1995-2003
 
Figure 7: Germany: Consumer prices, 1997-2003
 
Figure 8: Germany: Consumer expenditure, 1995-2003
 
Figure 9: Germany: Detailed breakdown of consumer expenditure, 1999-2003
 
The German Home Shopping Market
 
Introduction
 
Mail order
 
E-commerce
 
Direct selling
 
Market value
 
Figure 10: Germany: Home shopping market, by segment, 2003
 
Figure 11: Germany: Home shopping market, 2003
 
Mail order sector
 
Sector value and trends
 
Figure 12: Germany: Mail order sector sales, 1999-2003
 
Figure 13: Germany: Mail order sales trends by main segment, 1999-2003
 
Figure 14: Germany: Mail order sales performance by segment, 1999-2003
 
European Consumer Trends
 

 
Comparison of mail order shopping patterns across Europe
 
Figure 15: Europe: Mail order use in GB, Germany, France and Spain, 2004
 
Comparison of mail order shopping patterns since 2001
 
Figure 16: Europe: Mail order use in GB, Germany, France and Spain, 2001 and 2004
 
Figure 17: Europe: Agency Mail order use in GB, Germany, France and Spain, 2001 and 2004
 
Comparison of attitudes towards new technology and shopping across Europe
 
Figure 18: Agreement with statements relating to new technology and shopping in Europe, by GB, Germany, France and Spain, 2004
 
Leading Players
 
Figure 19: Germany: Membership of the German mail order association, 2003
 
Direct selling sector
 
Sector value and trends
 
Figure 20: Germany: Direct selling sector – FEDSA members data, 1999-2003
 
Leading players
 
Figure 21: Germany: Direct Selling, leading players, 2004
 
E-commerce sector
 
Figure 22: Germany: Total B2C online sales, 2000-05
 
Television shopping sector
 
Enterprise data
 
Figure 23: Germany: Mail order retailers – Enterprise numbers by type, 1997-2001
 
Figure 24: Germany: Share of all mail order enterprise numbers, 1997 and 2001
 
Leading home shopping retailers
 
Market shares
 
Figure 25: Germany: Leading home shopping retailers, 2003
 
Prospects and Forecasts
 
Prospects
 
Forecasts
 
Figure 26: Germany: Mail order sales forecasts, 2004-09 (f)
 
Figure 27: Germany: Mail order sales as % all retail sales, 2004-09 (f)
 
Major Company Profiles
 

 
Bertelsmann DirectGroup
 
Background
 
Market share
 
Figure 28: Bertelsmann DirectGroup: Sales as % all mail order sales, 2001-03
 
Financial data
 
Bertelsmann Group
 
Figure 29: Bertelsmann Group: Financial performance, 1999-2003
 
Bertelsmann DirectGroup
 
Figure 30: Bertelsmann DirectGroup: Financial performance, 2000-03
 
DirectGroup operations
 
Figure 31: Bertelsmann DirectGroup: Sales by region and business type, 2003
 
Figure 32: Bertelsmann: DirectGroup clubs and businesses, 2003
 
Europe
 
European book clubs
 
Figure 33: BCA: Leading clubs, 2003
 
US
 
Asia
 
SWOT
 
KarstadtQuelle
 
Figure 34: KarstadtQuelle Germany: Mail order sales as % all German mail order sales, 1999-2004
 
Figure 35: KarstadtQuelle: German mail order sales as % all German mail order sales, 1999-2004
 
Figure 36: KarstadtQuelle: Foreign mail order sales as % of non-German European mail order sales, 1999-2004
 
Background
 
Reorganisation and restructuring
 
The scale of the problems
 
Restructuring
 
History
 
Multi-channel strategy
 
Financial data
 
Figure 37: KarstadtQuelle: Group financial performance, 1999-2004
 
E-commerce
 
Figure 38: KarstadtQuelle: Major websites, 2003
 
Sales by country
 
Figure 39: KarstadtQuelle mail order: Estimated sales by country, 2003
 
Catalogues
 
Universal mail order
 
Speciality mail order
 
Figure 40: KarstadtQuelle: Specialist catalogue businesses, 2003
 
Operations and systems
 
SWOT
 
Klingel
 
Background
 
Financial data
 
Catalogues
 
Outlets
 
E-commerce
 
SWOT
 
Otto
 
Figure 41: Otto Europe: Sales as % of all European Home shopping sales, 1998-2003
 
Background
 
History and ownership
 
E-commerce
 
Mail order development
 
Figure 42: Otto: Key acquisitions, 1976-2002
 
European retail outlets
 
European joint ventures
 
Non-retail activities
 
Financial data
 
Group performance
 
Figure 43: Otto Group: Financial performance, 1999/2000-2002/03
 
European retail performance
 
Figure 44: Otto Group: European retail sales performance, 1999/2000 and 2002/03
 
Figure 45: Otto Group: European retail sales by subsidiary company, 2003/04
 
European retail sales by country
 
Figure 46: Otto group: Estimated European retail sales by country, 2003
 
European operating companies
 
Figure 47: Otto Group: European home shopping interests by country and brand, 2002/03
 
Germany
 
Figure 48: Otto, share of German mail order sales, 1999-2003
 
Schwab
 
Figure 49: Schwab Group, sales relative to German mail order sales, 1999-2003
 
Figure 50: Heiine Group, sales relative to German mail order sales, 1999-2003
 
Figure 51: Baur versand, sales relative to German mail order sales, 1999-2003
 
Figure 52: Bon Prix, sales relative to German mail order sales, 1999-2003
 
Figure 53: 3 Suisses, sales relative to French mail order sales, 1999-2003
 
Otto (UK) – Grattan and Freemans
 
Figure 54: Otto (UK), share of UK mail order sales, 1998-2003
 
Operations and systems
 
E-commerce
 
Figure 55: Otto Group: European websites, 2003
 
SWOT
 
Redcats (PPR)
 
Market shares
 
Figure 56: Redcats: share of French mail order market, 1999-2003
 
Figure 57: Redcats: share of UK mail order market, 1999-2003
 
Background
 
Group
 
Figure 58: PPR: Group sales by division, 2004
 
Redcats
 
Future growth
 
Financial data
 
Figure 59: Redcats: Financial performance, 1999-2003
 
2004 sales figures
 
2003 detailed sales analysis
 
Sales by division
 
Figure 60: Redcats: Turnover by division, 2001-03
 
Sales by channel
 
Figure 61: Redcats: Turnover by channel, 2001-03
 
Sales by product category
 
Figure 62: Redcats: Sales by product category, 2002 and 2003
 
Sales by geographic region
 
Figure 63: Redcats: Sales by region, 2002 and 2003
 
International presence
 
Figure 64: Redcats: International interests of European catalogues, 2004
 
Outlets
 
Figure 65: Redcats: Outlet data, 2003
 
Catalogues and products
 
Big books
 
Specialist catalogues
 
E-commerce
 
Figure 66: PPR: Internet sales, 2000-04
 
Figure 67: Redcats: Main e-commerce sites, 2004
 
SWOT
 
Alticor (Amway)
 
Background
 
Rich DeVos and Jay Van Andel
 
International expansion
 
Figure 68: Amway: European operations, dates of entry
 
Quixtar
 
Amway's multi-level marketing
 
Selling through independent business owners (IBOs)
 
Financial data
 
Figure 69: Alticor: Financial performance, 2000-04
 
Figure 70: Amway UK: Financial performance, 1998-2002
 
Figure 71: Alticor: Sales by region, 2003
 
Figure 72: Amway Europe: Sales by country, 2003
 
Products
 
E-commerce
 
Figure 73: Amway: European websites, 2004
 
SWOT
 
Avon
 
Background
 
Internationalisation
 
Figure 74: Avon: Year of entry in European countries
 
Channels of distribution
 
Direct selling channel
 
Store-based retailing
 
Financial data 2004
 
Figure 75: Avon: Financial performance, 1999-2003
 
The European division
 
The Asia Pacific Division
 
The Latin America Division
 
The U.S.A Division
 
Figure 76: Avon: Group sales and profits by geographic region, 2003
 
Figure 77: Avon European division: Sales relative to estimated European home shopping sales, 2000-03
 
Figure 78: Avon: European divisional sales by country, 2003
 
Products
 
Figure 79: Avon: Global sales by product breakdown, 2001-03
 
Figure 80: Avon: Global sales by product breakdown, 2003
 
Figure 81: Avon: Key beauty own brands by category
 
E-commerce
 
Figure 82: Avon: European Websites, 2004
 
SWOT
 
Tupperware
 
Market share
 
Figure 83: Tupperware: European sales as % total European direct sales, 2000-03
 
Background
 
Selling strategy
 
Financial data
 
Figure 84: Tupperware Group: Financial performance, 1999-2003
 
Figure 85: Tupperware: Sales performance in Germany vs the rest of Europe, 1999-2003
 
The UK and Ireland
 
Figure 86: Tupperware: UK & Republic of Ireland: Financial performance, 1999-2003
 
Mixed results in 2004
 
Products
 
Figure 87: Tupperware: Websites, 2003
 
E-commerce
 
SWOT
 
Vorwerk
 
Market share
 
Figure 88: Vorwerk: European sales as % total European direct sales, 2000-03
 
Background
 
Financial data
 
Figure 89: Vorwerk: Financial performance, 1999-2003 (a)
 
Figure 90: Vorwerk Group: Sales by main operating division, 2003
 
Figure 91: Vorwerk: Direct sales performance, 1999-2003
 
Products
 
E-commerce
 
Figure 92: Vorwerk websites, 2004
 
SWOT
 
amazon.com
 
Market share
 
Figure 93: Amazon: Sales as % all mail order sales, 2000-03
 
Background
 
History
 
International expansion
 
Customer focus
 
Financial data
 
Figure 94: Amazon.com: Financial performance, 2000-04
 
International division outperforms North America
 
Figure 95: Amazon.com: Sales and gross profit by segment, 2001-04
 
Figure 96: Amazon: Sales by division, 2000-04
 
Products
 
Operations and systems
 
SWOT
 
TV-Shop (MTG)
 
Market share
 
Figure 97: TV-Shop: Sales as % All European home shopping sales, 2000-03
 
Background
 
MTG Group
 
Figure 98: MTG Group Structure: Sales by main operating division, 2003
 
TV-Shop
 
Financial data
 
Figure 99: MTG: Financial performance, 1999-2003
 
Figure 100: MTG: TV-Shop division by major component, 2000-03
 
2004 Interim results
 
E-commerce
 
SWOT
 
QVC
 
Figure 101: QVC (UK), sales relative to all UK mail order sales, 1998-2003
 
Figure 102: QVC (Deutschland), sales relative to all German mail order sales, 1998-2004 (e)
 
Background
 
History
 
The concept
 
Figure 103: QVC: key operating facts, 2002-03
 
Niche market
 
E-commerce
 
Further European expansion
 
Financial data
 
Figure 104: QVC: Financial data, 1999-2003
 
UK
 
Germany
 
Products
 
Operations
 
SWOT
 
Mini Company Profile
 
Conrad
 
Market share
 
Figure 105: Conrad: Estimated mail order sales as % of all German mail order retailers’ sales, 1999-2003
 
Background
 
Financial data
 
Figure 106: Conrad: Estimated sales, 1999-2003