Comprehensive market study helps a Swedish Wine Group expand its business in Germany
The client is a well-established Swedish wine group with proven success, experience and existing supply network in wine retailing.
The client has a new expansion plan and contacted ARC Consulting to conduct a market study on the online wine retail market in Germany. This study consists of a general market overview, segmentation analysis and recommendations to assist the client in creating the detailed expansion strategy.
- The German wine market accounted for 12.8% (€19.344 billion) in 2015. With a 2% year-over-year growth rate, the share should reach €21.404 billion by 2020
- The value of online retail sales in Germany reached €45.640 billion in 2015, with a growth rate of 13.6%. Approximately 74% of the 51.45 Million German internet users reported online purchases in 2015, and 1/3 of these purchases were made on a mobile device.
- The online wine market is estimated to be 3-5% (€300 million) of the overall wine market in Germany. 57% of the wine buyers reported having purchased wine online.
- The German market is relatively open to foreign wines, and therefore, attracts many new entrants. Southern Germany, with its strong wine production and traditions, is an exception to the rule, so northern Germany is a better target.
The rising popularity of lighter foods in Germany has directly increased the consumption of white and rose wines.
The market study was conducted in three steps: Preparation and Research, Data Analysis and Final Report.
Data was collected primarily from secondary resources and counter-checked with primary resources.
- Emphasize online channel in an omni-channel strategy wherein customers can choose the best method to buy wine in any given situation, including Click & Collect, receive information on product availability, goods reservation, and same day delivery option.
- The most effective digital marketing channels in Germany are Homepage, E-mail, Search engines and Social media.
- Speed of delivery is critical. Demand for services, such as click and collect and delivery time reservations will continue to grow. Same-day delivery service is becoming a standard feature for leading online retailers.
- Germany has a competitive wine market where existing suppliers have already gained a trust and presence in the market. Newcomers must define their niche, deliver consistently above expectations, and pursue their offer clearly and consistently.
- ARC Consulting completed a comprehensive market study of the online wine market in Germany, including major trends, market drivers, key consumer decision-making factors, and the competitive landscape.
- Helped the client better understand the trends in the target market and the market segment in order to evaluate the potential opportunities and challenges.
Enabled the client to evaluate its business plan and tailor its strategy to reach the target market segment most effectively.