Where and for which products do Germans have the most disposable income?

Germans devote the largest share of their retail purchasing power to food items, home improvement and clothing. The 2014 GfK study on regional purchasing power for retail product lines reveals significant regional variations in these values for products such as furniture, pet supplies and wine, among others.

The study "GfK Purchasing Power for Retail Product Lines 2014" reveals the latest regional purchasing power potential for approximately 60 product lines. Using data from the GfK consumer panel, GfK can also calculate the retail-specific regional sales potential for more than 200 product-line groups. Purchasing power measures the average available purchasing potential at consumers' places of residence; as such, this indicator encom-passes product line-specific potential for both stationary and online retail. Gastronomy-related expenditures are not taken into account.

In 2014, the breakdown of Germans' per-capita retail purchasing power of €5,657 among the 17 product groups is as follows:

​food items ​2,296 ​40.6
​home improvement items ​606 ​10.7
​clothing ​456 ​8.1
​furniture and furnishings ​455 ​8.0
​health and hygiene products ​447 ​7.9
​books, stationery ​238 ​4.2
​consumer electronics, electronic media ​189 ​3.3
​electrical household appliances ​181 ​3.3
​information technology ​121 ​2.1
​photo, optics ​120 ​2.1
​toys, hobbies ​116 ​2.0
​shoes, leather goods ​112 ​2.0
​sporting goods, camping ​102 ​1.8
​household products ​83 ​1.5
​watches, jewelry ​71 ​1.3
​telecommunications ​48 ​0.9

source: GfK Purchasing Power for Retail Product Lines Germany 2014

By way of example, details on the regional purchasing power for furniture, pet supplies and wine are given below.
Munich residents have the most disposable income for furniture
In 2014, Germans have an average of €455 per person for spending on furniture and furnishings. Of this amount, €322 is spent on furniture alone, while the remaining €133 is spent on home textiles such as carpets, drapes and bedding.

Inhabitants of Munich have the highest average per-capita purchasing power for furniture at €466, which is 44 percent above the national average. Along with the usual high-performers of Hochtaunus and Starnberg, Baden-Baden and Stuttgart also make the list of this year's districts with the highest purchasing power. Inhabitants of Baden-Baden have on average one-third more to spend on furniture than the national average.

Top 10 districts for per-capita purchasing power for furniture

​Munich UD ​466 ​144.4
​Hochtaunuskreis RD ​452 ​140.1
​Starnberg RD ​441 ​136.8
​Main-Taunus-Kreis RD ​437 ​135.7
​Munich RD ​435 ​134.9
​Baden-Baden UD ​429 ​133.0
​Stuttgart UD ​409 ​126.8
​Stormarn RD 403 ​124.9
​Ebersberg RD ​401 ​124.5


source: GfK Purchasing Power for Retail Product Lines Germany 2014

*index: 100=national average

Consumers in Ruhr region spoil their pets

Purchasing power for pet supplies (almost €4 bil. nationwide) is significantly more evenly distributed throughout Germany than purchasing power for furniture. Even so, the nation's Ruhr region clearly leads the pack in purchasing power for pet supplies. Inhabitants in North Rhine-Westphalia are more generous to their pets than inhabitants of any other federal state in Germany. They spend on average €54 per person on their pets, which is 11 percent more than the national average (€49 per person). It´s no dog's life for pets in the Rheinisch-Bergischer district, where inhabitants have a per-capita purchasing power of €60 for pet supplies. And this doesn't even take into account visits to pet salons, as the study only evaluates potential in the retail sector.

Top 10 districts for purchasing power for pet supplies

​Rheinisch-Bergischer Kreis RD ​60 ​122.2
​Hochtaunuskreis RD ​60 ​121.8
​Mettmann RD ​59 ​120.8
​Rhein-Kreis Neuss RD ​59 ​119.5
​Düsseldorf UD ​58 ​118.6
​Ennepe-Ruhr-Kreis RD ​58 ​118.1
​Rhine-Sieg-Kreis RD ​57 ​116.3
​Mülheim an der Ruhr UD ​57 ​116.2
​Rhein-Erft-Kreis RD ​57 ​116.1
​Main-Taunus-Kreis RD ​57 ​115.9

source: GfK Purchasing Power for Retail Product Lines Germany 2014
*index: 100=national average

The situation is not as rosy for pets in Cloppenburg, Kiel, Freiburg i.Br., Lübeck and the County of Bentheim. In those areas, only €39 to €41 is available per person for spending on pet supplies.
"It's at first surprising that inhabitants of Freiburg im Breisgau are ranked third to last among Germany's 402 districts with regard to pet-related spending potential," says market data expert Simone Baecker-Neuchl. "The numbers are likely affected by the many students in that city, who are probably more interested in spending their money on bicycles. Inhabitants of Freiburg have 16 percent more than the national average for spending on bicycles."

Wine-lovers are concentrated in western Germany
As much as Germans love spending on animals and bicycles, they are even more passionate about purchasing wine. With €92 available per person, expenditures in this area amount to more than those for bicycles and pet supplies combined. And this figure doesn't take into account wine purchased in restaurants and other gastronomic venues.
Southwestern Germany stands out in terms of expenditures for this product line. Germany's five districts with the highest purchasing power for wine spend 40 to 60 percent more on this product line than the national average.

Top 5 districts according to number of inhabitants

​Hochtaunuskreis RD ​146 ​158.7
​Main-Taunus-Kreis RD ​143 ​155.4
​Starnberg RD ​140 ​152.0
​Baden-Baden UD ​131 ​142.5
​Munich RD ​129 ​140.2

source: GfK Purchasing Power for Retail Product Lines Germany 2014
*index: 100=national average

With just €60 available per person, inhabitants of Vorpommern-Greifswald have the least available for this product group. This amounts to 40 percent of the average purchasing power for wine in Hochtaunuskreis. Flensburg represents the national average at €92 per person.
A comparison of Neustadt a.d. Weinstraße with nearby Mannheim proves that purchasing power can vary widely within a given region: Inhabitants of Neustadt have around €117 per capita available for wine, which is 27.5 percent more than the average. And this is in addition to the high number of private vineyards and the ability to buy directly from local wine growers, factors that the purchasing power study doesn't take into account. By contrast, inhabitants of Mannheim have only €98 per person for wine expenditures.

About the study
The study "GfK Purchasing Power for Retail Product Lines 2014" is calculated on the basis of various surveys and analyses of retail-related consumer behavior. This study also takes into account data from the GfK consumer panel, which anonymizes the expenditures of a representative sample of approximately 30,000 German households. On the basis of this consumer information, GfK's Geomarketing division uses socio-demographic comparisons and geostatistical modeling to calculate regional, product line-specific purchasing power. This data provides comprehensive coverage of all of Germany's administrative and postal levels, from the country's federal states and municipalities to five-digit postcodes and street segments. Product line-specific purchasing power is also available for other European countries.

Purchasing power is provided in the form of forecasted nominal values, meaning that they have not been adjusted for inflation. These values are based on places of residence rather than points of sale. The data comprises average values for all inhabitants of a given region. These figures therefore cannot be used to draw conclusions regarding the financial wealth of individuals.

Additional information on GfK's regional market data can be found at
www.gfk.com/marketdata.
Print-quality illustrations can be found at www.gfk.com/Documents/News/2014/retail-lines-2014.zip.

About GfK
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK's long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers' experiences and choices.
Additional information can be found at www.gfk.com.
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V.i.S.d.P.
GfK GeoMarketing GmbH
Public Relations
Cornelia Lichtner
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Gebäude 6508
76646 Bruchsal; Germany
T+49 7251 9295 100
F+49 7251 9295 290
cornelia.lichtner@gfk.com



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