The question of choosing a region for business is one of the most important for successful business. After all, the level of the region's economy and the standard of living of its inhabitants directly affects the consumer ability of potential customers to use the services of companies or buy their goods. Most marketers agree that choosing the region with the highest level of solvency is the basis for starting a successful business.
A focus on the most affluent and interested regions can bring companies millions in revenue, so it is not surprising that many companies pay attention to the DACH region.
DACH is an abbreviation of the names of the three largest German-speaking countries: Deutschland (Germany), Austria (Austria) and Confoederatio Helvetica (Switzerland). Thus, the DACH region is a large region with a strong economy and strong prospects for European companies. The popularity of e-commerce and the income of successful companies operating here speak for themselves. But what is special about this region and what is the reason for the high level of interest of users in e-commerce?
What is DACH and why is this region so attractive for e-commerce
The DACH region, as already mentioned, is Germany, Austria and Switzerland. That is, countries with the highest quality of life in Europe. This is due to the high level of interest of the region's residents in e-commerce and new technologies.
The solvency of DACH residents is high, though not the same. For example, in Germany and Austria the average annual purchasing power per user is 24,000 euros, and in Switzerland - 42,000 euros. The huge difference is due to the cost of living of the Swiss: it is also an order of magnitude higher than that of the Germans and Austrians.
All countries in the region have excellent infrastructure and the necessary resources to run a successful business. The popularity of Internet technologies here is also high, which creates additional conditions for productive work of entrepreneurs and companies.
E-commerce in DACH
Residents of the region spend a lot of time online: an average of 5 and a half hours a day. The lion's share of this time they spend on social networks and browsing the catalogs of online stores.
Despite the general interest of users in the online space and the constant interaction with e-commerce, trends in the region are different. That is why, when planning to enter the DACH market, it is first necessary to get acquainted with these differences.
Current trends in DACH countries
Each country in the region has its own trends, and this is not surprising. This is largely due to the different interests and needs of users.
Before starting a business focused on the DACH region, you need to carefully study the specifics of each country. Currently, the trends are as follows:
The German market is one of the largest in Europe and creates comfortable conditions for e-commerce. The country's share in global economic activity is 4.54%, which makes its market attractive for starting a business.
In 2018, the German e-commerce market was estimated at 65 trillion euros, which is 11% more than in 2017. This growth is due to the constant development of electronic trading platforms, whose popularity and total revenue also increased by 10% during the year.
Germany is the leader among European countries in the number of open online stores. Not surprisingly, a country with such a large market and a high level of consumer solvency also has a lot of competition in the domestic market.
According to research by We Are Social, the most popular product categories among German buyers are currently furniture and household appliances. Entrepreneurs who plan to launch the sale of goods in this group with a focus on Germany, are likely to be able to make a good profit and attract many customers.
Thanks to a strong economy, this country ranks 23rd in the World Bank's ranking of GDP per capita. This allows Austrians to increasingly show interest in online shopping.
Over the past 10 years, the number of users who make online purchases has doubled. This figure can be considered an argument for starting a sales-oriented business in this country.
The high level of interest of Austrian users in purchasing goods online has led to the following: 4.3% of the total turnover of Austrian retail trade is accounted for by online sales.
According to We Are Social, some of the most popular categories of goods that Austrians order online are personal care products and food.
Despite its small size, Switzerland is one of the top countries whose users are interested in buying goods online. More than 95% of Swiss people are regular Internet users. In addition, 90% of the population have shopped online at least once in their lives. Based on these data, it is safe to say that Switzerland is one of the most promising countries in terms of electricity commerce.
In addition, the Swiss prefer to buy not in local but in foreign online stores. Statistics support this, as it is known that in just one year the percentage of cross-border sales increased by 23%.
Most Swiss people prefer to buy goods on the Internet that belong to the categories of "multimedia", "Hi-Fi", "electrical appliances", as well as "fashion and footwear".
As you can see, DACH users have different interests. At the same time, the overall percentage of those who prefer online shopping is growing every year. This trend gives every reason to believe that choosing the DACH region to start an online business promises entrepreneurs a better chance of success than in any other region in Europe.