Some 61% of German consumers fear a ‘deterioration’ of the country’s economy this year, a new study by Mintel has found.
With Germany facing high energy prices, supply chain bottlenecks and bureaucratic hurdles in recent years, consumer sentiment remains low in the country, with some 62% of respondents to Mintel’s study saying that they expect the standard of living in Germany to deteriorate over the coming decade.
In terms of the country’s role in the world, meanwhile, just 29% believe that Germany will retain its position as one of the five largest economies in the world.
‘Made In Germany’
At the same time, German-made products continue to be an indication of quality in the eyes of consumes, with 48% expressing confidence that it will continue to be a hallmark of excellence for products in the future.
Moreover, 70%, fine companies that produce goods within Germany ‘more appealing’ compared to those that outsource manufacturing.
Economic environment
“In times like these, companies have to stand out from the crowd in order to remain attractive in a difficult economic environment,” commented Dr. Jennifer Hendricks, senior analyst for consumer lifestyles at Mintel Germany.
“It’s not just regional niche brands that are well advised to adopt a strategy that focuses on local aspects. We are increasingly observing the trend towards ‘glocalisation’. Global brands with production sites in Germany benefit from information on origin and regional production and supply chains, as these promote transparency and create a sense of community.”
When asked about their own household income, consumers are showing some degree of optimism, 47% are confident that their household income will remain the same this year, and 14% even expect it to improve.
Regarding expenditure priorities, holiday spending tops the list at 24%, followed by activities with friends (21%) and regular savings (21%).
“Nevertheless, we assume that 2024 will remain a difficult year for the economy and that consumers will exhibit cautious spending behaviour,” added Hendricks.
