App Annie, in partnership with Kantar Retail, is excited to announce the release of its newest report exploring the state of retail mobile apps in Germany. Our last report with Kantar Retail looked at the state of retail apps in France. This time we turn our eyes to Germany in our first-ever App Annie & Kantar Retail: Top Retailers & The App Economy in Germany report, where we once again investigate how retail mobile apps and technology are reshaping the retail industry. The European online retail market is expected to hit $212.8 billion in 2014, and mobile is taking more of the online retail market pie. Germany alone accounts for 27% of all online retail transactions in Europe, and has proven itself to be one of the most popular global retail markets. This report will be essential for retailers — traditional and modern alike — launching or expanding their apps into Germany’s app stores.

1. App Annie &
Kantar Retail
Top Retailers & The App Economy
in Germany
December 2014

2. App Annie & Kantar Retail: Top Retailers & The App Economy in Germany
Summary
Germany is one of the world’s most sophisticated retail markets. Known for a highly
developed logistics structure, excellent productivity rates and an internationally competitive
infrastructure, Germany has become a popular environment for retail businesses worldwide.
The evolution from e-­commerce to m-­commerce is well underway in Germany and both
domestic and international retailers have started exploring opportunities and challenges that
new technologies bring with them.
Many of the top retailers in Germany have already created apps that have proven to be an
important and effective part of their growing businesses. These apps offer unique
engagement functionality for customers and provide better shopping experiences. While many
of these apps are similar in the basic features they offer, there is still much opportunity for
those who continue to invest in a well thought out and innovative mobile strategy.
At this stage, there are still specific challenges to overcome in Germany. As the most
cash-­intensive economy worldwide, Germans have yet to fully embrace alternative payment
systems, especially paying through mobile apps. Subsequently, Germans currently tend to
use retail apps primarily in ways that enhance their overall shopping experience — apps that
feature special offers or some sort of novelty. However, as more apps are released that offer
creative and secure ways to engage with their users, it is likely they will succeed as evidenced
by several of the top retail apps highlighted in this report.
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3.
App Annie & Kantar Retail: Top Retailers & The App Economy in Germany
Table of Contents
1. The Evolving Retail Landscape in Germany
● The German Retail Environment
● Top 25 Retailers in Germany
2. Top Retail Apps in Germany
● Top 25 Apps From Top Retailers in Germany
● Primary Feature Sets of Retail Apps in Germany
● Retail Apps Across Platforms and Devices
● Retail Apps Across Categories
3. Mobile Opportunities and Challenges for Retailers in Germany
● Trending Retail Apps in Germany
● The Next Big App?
● Gamification, Incentives and Rewards
● Challenges for Retailers in Germany
● The Importance of Security
● An All-­in-­One Solution
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4.
App Annie & Kantar Retail: Top Retailers & The App Economy in Germany
1. The Evolving Retail
Landscape in Germany
The German Retail Environment
Hot on the heels of our report on France's retail market, App Annie and Kantar Retail are
excited to present an in-­depth look at the current state of mobile apps for retailers in
Germany, and examine the potential for mobile technology to reshape the industry in a market
home to several of the world’s largest retailers.
The advent of e-­commerce heralded a monumental shift in the retail industry, introducing new
opportunities and challenges to traditional retailers. In 2014, the European online retail market
is expected to exceed €150 billion, 81% of which is concentrated in its three largest markets
— the United Kingdom, Germany and France — with Germany accounting for 27% of the
market. In addition to this positive outlook, Germany also offers a highly developed logistics
infrastructure. This environment makes Germany an important market to consider for retailers
when thinking about challenges such as same day delivery or the optimization of productivity
and efficiency rates.
Germany is one of the most popular global retail markets, not only in the classic retail
environment of brick-­and-­mortar stores, but also in the innovative mobile retail space.
Germany has shown above average mobile proportions from online retail sales when
compared to the rest of Europe. The share of online orders made using mobile technology in
Germany is expected to reach 16.8% in 2014, which translates to a market of over €6.6
billion.
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5.
App Annie & Kantar Retail: Top Retailers & The App Economy in Germany
Top 25 Retailers in Germany
Identified by Kantar Retail by 2013 Sales Revenue in All Channels
Rank Retailer Headquarters Primary Channel
1 EDEKA Germany Supermarket
2 Schwarz Group Germany Discounter
3 REWE Group Germany Supermarket
4 Metro Group Germany Cash & Carry
5 ALDI SÜD Germany Discounter
6 ALDI Nord Germany Discounter
7 Tengelmann Group Germany Supermarket
8 Amazon United States E-­commerce
9 Otto Group Germany E-­commerce
10 dm drogerie markt Germany Drug Store
11 Globus Handelshof Germany Hypermarket
12 AS Watson Hong Kong Drug Store
13 IKEA Netherlands Home / Furniture
14 Karstadt Germany Department Store
15 Expert Germany Switzerland Electronics Specialist
16 Euronics International Netherlands Electronics Specialist
17 C&A Mode Germany / Netherlands Apparel
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6.
App Annie & Kantar Retail: Top Retailers & The App Economy in Germany
18 Tchibo GmbH Germany Category Specialist
19 H&M Sweden Apparel
20 Norma Germany Discounter
21 Douglas Germany Drug Store
22 Bauhaus Switzerland Home / DIY
23 Coop Schweiz Switzerland Cash & Carry
24 ElectronicPartner Germany Electronics Specialist
25 Praktiker Germany Home / DIY
Source: Kantar Retail
Germany is home to retail's largest single market in the European Union, making the country
one of the biggest players in the world. Similar to France, Germany also shows a strong
presence for domestic retailers in the top 25 as identified by Kantar Retail. Over the past
several years, the German retail sector has shown consistent year-­over-­year growth in both
volume and value, and the presence of international retailers in Germany — such as Amazon,
IKEA and H&M — has also notably increased. As domestic markets mature and potential
competition increases, even North American retailers are looking to expand globally, keeping
a close eye on market opportunities in Germany.
Based on data from Kantar Retail, the top 7 ranks are dominated by German domestic
companies: Edeka, Schwarz Group, REWE Group, Metro Group, ALDI Nord & Süd, as well
as the Tengelmann Group. These 7 retailers combined made over 70% of the revenue of the
top 25 retailers listed. Despite non-­grocery retailers such as Amazon growing over 15% year
over year, retailers with primarily grocery operations maintain strong positions in Germany,
including Edeka’s comfortable lead over other retailers.
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7.
App Annie & Kantar Retail: Top Retailers & The App Economy in Germany
In addition to the main supermarkets and discounters, the top 25 retailers in Germany cover a
variety of different channels, such as department stores, electronic stores, DIY and apparel.
The main domestic non-­food retailers include the Otto Group, dm drogerie markt, Karstadt
and Tchibo.
2. Top Retail Apps in Germany
Top 25 Apps From Top Retailers in Germany
Combined iOS & Google Play Downloads, Q3 2014
Rank App Retailer iPhone iPad Google Play
1 Amazon Amazon ✓ ✓ ✓
2 H&M H&M ✓ ✗ ✓
3 Lidl Schwarz Gruppe ✓ ✗ ✓
4 IKEA IKEA ✓ ✗ ✓
5 IKEA Catalog IKEA ✓ ✓ ✓
6 Tchibo Tchibo GmbH ✓ ✓ ✓
7 ALDI SÜD ALDI SÜD ✓ ✗ ✓
8 Media Markt Metro Group ✓ ✗ ✓
9 OTTO Otto Group ✓ ✓ ✓
10 Saturn Metro Group ✓ ✗ ✓
11 ALDI Nord ALDI Nord ✓ ✓ ✓
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