Gartner L2 Digital IQ Index  February 13, 2015

Beauty: Germany 2015

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Gartner L2 Digital IQ Index

The 2015 Digital IQ Index: Beauty Germany assesses the digital performance of 69 Beauty brands in Germany, spanning three product categories: Fragrance, Color Cosmetics, and Skincare. While German consumers spend more on cosmetics than any neighboring EU market, the dominance of traditional distribution channels and fragmentation of Health & Beauty specialists have kept e-commerce low. Amazon is stepping into this e-commerce void. While German consumers demonstrate a preference for digital product discovery and increasingly rely on mobile devices, brands are not fully meeting this demand and lag in digital investment. This study examines enterprise investments, brand visibility across numerous platforms, and digital performance across key metrics.

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Beauty: Germany 2015

February 13, 2015
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Overall e-commerce is accelerating in Germany, accounting for 9 percent of retail sales. However, the Beauty industry is behind the curve. Just seven percent of Color Cosmetics, four percent of Fragrance and one percent of Skincare sales occur online. Mirroring the market, brands have been slow to advance their e-commerce offerings. Just 35 percent of German Index brands provide Direct-to-Consumer e-commerce and 22 percent hand off to an e-tailer. 43 percent of German Index brands provide no path to purchase whatsoever. The low e-commerce penetration rate in Germany is due in part to the fragmentation among Health and Beauty Specialist retailers, which account for 63 percent of offline Beauty sales. For German makeup shoppers, online research is now almost as important as offline research—22 percent of consumers research online, compared with 23 percent who conduct offline research. Eighteen percent of makeup buyers use a search engine for research, and yet, just over half of German beauty brands are buying their own brand search terms on Google.de. Twenty-six percent of German online shopping transactions now occur on a smartphone or tablet, almost on par with the U.S., although far below the Asian mobile trailblazers Japan and Korea. Beauty brands in Germany are reacting. 65 percent of Index brands now have a mobile-optimized experience, up 29 percent since last year. However, there is still room for improvement. Thirty-three percent of Germans use mobile Internet to get localized information, but only 19 percent of Index brands have geo-location functionality on their mobile sites. Genius brand, ARTDECO, stands out with a strong direct-to-consumer e-commerce experience optimized for mobile, offering multiple payment options including payment on account, preferred by German shoppers. ARTDECO is accompanied in the Genius ranks by Nivea which effectively captures customer data across platforms to customize the user experience. These and other findings are available in our Digital IQ Index: Beauty Germany, available at http://www.l2inc.com/beauty-germany-2015?utm_source=youtube&utm_medium=organic&utm_content=beauty-germany-2015&utm_campaign=youtube View More: http://goo.gl/IIk6LV Signup for updates: http://goo.gl/kVJTQ3 Follow us on LinkedIn: https://www.linkedin.com/company/l2-inc- Follow us on Twitter: https://twitter.com/L2_Digital Follow us on Facebook: https://www.facebook.com/l2inc

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