Understanding Luxury in Germany | Vogue

Euromonitor found that premium and luxury cars remain Germany’s largest luxury category by value, underscoring a cultural preference for well-designed, long-lasting goods. Meanwhile, experiential luxury is the fastest-growing segment, driven by demand for travel, dining and personalized experiences. Fflur Roberts, head of luxury goods at Euromonitor International, said: “Despite the cautious overall economic situation, Germany’s affluent consumers continue to prioritize memorable, high-quality experiences over material possessions.”

However, attitudes towards luxury fashion are changing among younger consumers, who are viewing fashion as a form of identity and cultural expression. This shift is largely driven by social media, which exposes young shoppers to global fashion trends. “The younger generation pursues fashion and wants to be a part of it because it’s a cultural movement — it’s not just something you buy and wear,” Apu said. Combined with Germany’s high earning potential and deep base of affluent consumers, this evolution suggests the market may become even more important for luxury goods.

How do Germans shop?

Given Germany’s geographically dispersed location, the retail landscape is spread across a network of local and relationship-driven destinations. “We have strong retailers, but often the strongest retailers are in places you’ve never heard of,” Apu said. “have [multi-brand] Boutiques in Düsseldorf, Cologne or Hannover, all great retail spaces are mostly owned by founders who know their customers very well. German customers are very loyal, so if you find your spot, you’ll go there again and again. “

This loyalty is built locally through personal relationships and long-term service. Arp said store owners tend to offer private showroom tours and contact customers when an item comes into the store because they know their customers’ wardrobes well.

In this context, curation, discovery and emotional resonance are the most important differentiators. Ong noted that there is room for more niche curation, especially since Germany’s few large department stores must serve a wider range of consumers. “You have to build a loyal community and create emotional experiences, especially in the current volatile environment in retail,” Arp added.

In light of this, department stores such as KaDaWe in Berlin and its sister stores Alsterhaus in Hamburg and Oberpollinger in Munich are making adjustments. “Department stores used to focus on quantity, but we have significantly strengthened our strategy with a clear focus on quality and curation in everything we do. Today, luxury means first and foremost time, space and authentic experiences,” said Timo Weber, CEO of KaDeWe Ltd. The retailer has launched pop-up shops, hidden kitchen parties, food court tastings, beauty masterclasses and other events to create a center and not just a shopping destination. “We want to be a ‘third place’ for our guests, close to home and work,” Weber said.