Consumer & Retail

With over 80 m inhabitants, Germany is the largest consumer market in Europe. In addition, the German population has above-average purchasing power, which fuels the growth of the industry. The sector is also considered particularly crisis-proof, as demand for consumer goods is largely independent of the economic cycle.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Carina Küffen

Current Developments

Adapted consumer behaviour drives innovation

The image of the typical consumer is changing. In the course of digitalisation, the customer increasingly demands a seamless cross-channel offer. In addition, customers often inform themselves in detail online about the subsequent purchase process. As a result, the importance of the customer experience and customer journey is increasing strongly.

Growth Rates

2020

+4.0%

2021

+4.2%

2022

+4.6%

Trends

Customer Journey

The increasing share of online shoppers is permanently changing the touchpoints of the customer journey. Marketing measures and influences on the part of companies must be adapted.

Transactions

Our Sector Transactions

0

Highlight Transaction

Stylebob GmbH x Fashion ID GmbH & Co. KG

Number of M&A transactions - DACH region, 2021 (as of August)

124

Significant Transactions

GVC Holdings X Nordic Leisure (2021)

Orkla Health X NutraQ (2021)

Future Trends

The individualisation of products and the entire customer journey is increasingly taking centre stage. It will become even more important to gain precise knowledge about one's customers in order to bring tailored products to market in combination with the best possible customer experience. Low barriers to market entry and low capital costs will continue to be drivers of high cost pressure in the future. Consequently, companies need to continuously review their entire value chain in order to operate as efficiently as possible.

Our View

First, retail and consumer goods companies are increasingly focusing on their core businesses and strengthening their portfolios by divesting non-related businesses while acquiring suitable businesses. As a result, M&A activity will increase. Secondly, the focus is on the targeted improvement of the customer journey. Stationary retail companies are increasingly investing in e-commerce companies to build up digital know-how.

People & Voices

Saxenhammer has in-depth technical and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.

"For companies that are financially and digitally very strongly positioned and have hardly suffered any blows during the crisis, acquisitions are particularly relevant at the moment and the timing is favourable."

Carina Küffen

Director

Sector Update

Saxenhammer professionals regularly release content on current affairs and market trends to stimulate thought and discussion. We share exciting analyses, real-time market insights, and company news with the world.