Germany’s full lockdown, announced on 22nd March, resulted in a flurry of orders for the country’s online Fashion Retailers - and by mid-april orders were up 150% on the previous year across our dataset.
While we’ve generally seen a trend towards online growth in response to lockdowns, what makes Germany stand out from the crowd is that the growth in orders is much higher than the growth in revenue (or another way to put it is the increase of orders has pushed the Average Order Value down - the UK and France saw the exact opposite - AOV actually increased). One online German Fashion retailer we validated this data with, agreed they had seen a surge of new orders but a general decrease in AOV - and put this down in part to a new category - non-medical grade masks.
Obviously we can’t put this trend as a whole down to Fashion retailers pivoting into masks, more likely it indicates more consumers shopping online in Germany - AOV is generally lowest for new customer cohorts. It’s a mixed blessing for brands - new customers present a new opportunity for retention revenue further down the line, however in the short term operational and logistical costs will be a challenge. Ideally, brands should look to make sure they are doing everything possible to onboard and engage new customers effectively as CLTV from these customers will be crucial in the months ahead.