Germany's retailers are set to increase their spend on digital marketing by 29% this year, according to the latest report by IDH - Initiative Digitale Handelskommunikation.
According to the report, which spoke to marketing managers across the retail spectrum – including grocery, drugstores, DIY, furniture, garden centres, fashion, consumer electronics and department stores – digital brochures are viewed favourably in terms of cost, impact and return on investment, while social media also performs strongly.
Print Brochures
At the same time, faith in print brochures continues to dwindle, IDH said, with 30% of respondents stating that print brochures are 'fundamentally replaceable', twice that of last year.
When asked what the biggest challenge for marketing managers operating in retail was, two thirds (67%) of respondents cited the 'restrained consumer sentiment'.
Elsewhere, 48% noted a change in trade communications, while 44% cited a shortage of labour as a core challenge.
Ifo Business Climate Index
The latest ifo Business Climate Index for Germany, which assesses business sector confidence, shows a continued decline in sentiment. In July, the index dropped to 87.0 points, down from 88.6 points in June.
The ifo institute noted that companies are less satisfied with their current business situation, and skepticism about the coming months has grown significantly.
The business climate in the trade sector also worsened, with companies expressing less satisfaction with their current situation. This decline in confidence is particularly notable among retailers, who have also expressed increased doubts about the future.
In the manufacturing sector, the business climate has also seen a notable decline. Assessments of the current situation have worsened significantly, with expectations also decreasing. Order backlogs have diminished, and capacity utilisation has dropped to 77.5%, which is 6 percentage points below the long-term average.
