Slower growth. Cautious spending. The economic forecast for the DACH region is shifting. With Germany’s GDP growth forecast at just over 0.5% in 2025 and private purchasing power slowing, consumers will be more selective than ever. For enterprise fashion retailers, this means one thing: adaptability is key.
The brands that will thrive amidst these economic pressures and changing consumer expectations are the ones that understand local trends and embrace innovation. Will yours be one of them?
1. In-Store Shopping Isn’t Going Anywhere
Who says in-store shopping is dead? The data speaks otherwise: in Germany, almost 80% of fashion purchases are still made offline. Similarly, in Austria and Switzerland, offline shopping is still alive and well with around 75% of shoppers projected to continue shopping offline.
But this doesn’t mean you should ignore your online shopping experience. When the economy is rocky, all your channels need to be at peak performance as every sale matters. And today, customers expect a hybrid experience that seamlessly blends online convenience with in-store shopping. With in-store shopping continuing to thrive in this region, what it needs is a digital boost to keep pace with modern expectations. The brands that master the omnichannel shopping experience will be the ones that win in 2025.
How to Reinvent Your In-Store Experience:
- Optimize your cross-channel returns: Omnichannel returns allow your customers to return online purchases in-store, creating a seamless experience. Use in-store interactions as your chance to re-engage customers by offering product exchanges or other convenient services.
- Digitize your physical space: Bring the online world into your stores by using interactive screens that display real-time inventory, style recommendations, and online reviews. Use digital checkouts and virtual fitting rooms to reduce wait times.
- Create a seamless BOPIS (buy online, pick up in store) experience: Enable customers to buy online and pick up in-store with options that enhance their in-store visits. Consider offering a “try before you buy” option, where online shoppers can try on their items and receive exclusive discounts in-store when they decide to keep their purchases.
Omnichannel isn’t just about convenience – it’s about transforming the traditional retail experience. Integrate digital and physical in every customer interaction to make shopping with you seamless, intuitive, and unforgettable.
2. Mobile Commerce and Social Shopping: The New Normal
If your customers can’t find you on their phones, they might not find you at all. While Germans have been slower to adopt smartphone-centric shopping compared to other regions, things are changing. With 64% of German online purchases made via smartphones and 68 million social media users in Germany, mobile and social commerce are quickly becoming the preferred way to discover and purchase products.
Today’s consumer is mobile-first. And the younger generations are driving the shift, transforming social platforms into active sales channels – 42% of German millennials reporting to have purchased via social commerce. Your brand’s online presence should feel less like a website and more like the effortless, engaging experience of scrolling through your favorite social media platform.
How to capture the mobile and social shopper
- Embrace a mobile-first design: Having a mobile-compatible website isn’t enough in 2025. Your entire eCommerce platform should be designed with mobile users in mind. This means one-click checkouts, fast load times, and an intuitive design
- Leverage social commerce: Platforms like Instagram and TikTok are made for building brand awareness. Take advantage of shoppable posts, exclusive offers, and in-app checkout to create a streamlined experience. Highlight UGC (user-generated content) to build trust and offer an authentic perspective on your brand.
- Prepare for TikTok Shop: While TikTok Shop’s rollout in Germany has been paused, its potential is too big to ignore. In just the first year after its US launch, the womenswear category generated over $620 million in revenue. Now’s the time to fine tune your social media strategy before TikTok Shop launches fully in the DACH region. Go beyond just product reviews and styling videos to boost brand awareness and engagement. Because once TikTok Shop goes live, the brands with the most compelling content will be the ones driving users straight to their shops.
- Reward mobile loyalty: Build loyalty directly into your mobile experience. Offer rewards for app users, run exclusive online-only sales, and incentivize repeat purchases with mobile loyalty programs. Use notifications to strategically keep your app and brand on customers’ radar.
Consumers expect instant access and instant results. Make mobile and social shopping a convenient, frictionless experience, and your brand will be top of mind in the DACH region’s mobile-first online fashion landscape.
Want to understand more about leveraging social commerce in 2025? Download our guide, Fashion Retail 2025: Strategies to Lead in a Trillion Dollar Market.
3. Sustainability and Quality Consumer Demands
In the DACH region, sustainability isn’t just a preference – it’s an expectation. Even as economic growth slows, nearly half of German consumers are willing to pay more for sustainable products. And with secondhand fashion on the rise in both Switzerland and Austria, where preowned apparel makes up almost 20% of the market share, shoppers are choosing cost-effective, eco-conscious options.
For enterprise brands, it’s about more than just adopting sustainable practices – it’s about proving them. DACH consumers expect transparency at every level, from sourcing to production, and they’re quick to align with brands that deliver both quality and authenticity.
How to Build Trust Through Sustainability and Quality Transparency
- Use interactive tags to tell your product’s stories: Attach QR codes to in-store products that let customers trace its journey, from sourcing to final production. Let them meet the people behind the product, see the materials used, and understand the environmental impact. Transparency builds trust, especially with DACH’s eco-concerned shoppers.
- Invest in secondhand and circular fashion initiatives: Launch buy-back programs or integrate a resale component into your brand, offering consumers the chance to trade in their items or shop pre-loved versions of your bestsellers with lower price tags. Amidst the changing economic landscape in this region, secondhand shopping offers a more affordable way for consumers to access their favorite brands. Global retailer Zara has recently implemented a pre-owned and repair service. This allows shoppers a cost-effective way to extend the brand’s lifecycle in a meaningful way.
- Highlight quality as a sustainability metric: Don’t just talk about your environmental efforts – showcase the durability and craftmanship of your products. Use marketing to highlight the longevity of your items and the quality of materials. When shoppers know your products are built to last, they’ll see them as worthwhile, eco-friendly investments.
Make transparency an inherent part of your brand. DACH consumers want to shop from brands that embrace transparency in sourcing, production, and materials.
4. Payment Flexibility: Localized Checkout Experiences
Offering localized payment choices isn’t a courtesy – it’s an essential. In Germany, 66% of consumers use Paypal or other online payment services, while many still prefer options like invoice payments. And as cart abandonment often boils down to payment process issues, to win over the DACH market, your checkout process must feel intuitive and align with consumer preferences. Payment options are no longer a backend detail – they’re a vital part of the customer experience.
How to Localize Payments for DACH Customers
- Offer locally preferred payment options: Go beyond credit cards to include DACH-specific options like PayPal, bank transfers, and invoice payments. Ensure that your payment solutions work seamlessly across devices, especially on mobile.
- Introduce Buy Now, Pay Later (BNPL): BNPL options have become highly popular, especially for higher-ticket items. Offering installment payments can help make your products accessible to a broader audience and drive up your average order value.
- Make payment frictionless on all channels: Integrate mobile wallets, like Apple Pay and Google Pay, for quick, on-the-go transactions. Focus on a smooth intuitive payment experience that aligns with customers’ increasing reliance on mobile.
Think of payment as part of your brand’s experience. When customers feel like they’re in control, they’re more likely to complete their purchase – and more likely to return.
5. Utilize Marketplaces for Expansion
Marketplaces are where DACH consumers are discovering new brands, with Amazon ranking as the region’s favorite platform.
But there’s more to a marketplace strategy than simply listing your products. Smart brands are using these platforms to capture attention, while others are even transforming their own websites into marketplaces.
Marketplaces aren’t just about sales – they’re about brand visibility, reach, and growth.
How to Leverage Marketplaces
- Optimize your listings: Standing out on marketplaces requires more than just visibility – it requires distinction. Use high-quality images, compelling descriptions, and targeted keywords to capture user searches. Monitor customer reviews and feedback, as these can make or break your reputation.
- Create a brand store on popular marketplaces: Marketplaces offer a unique opportunity to extend your brand. Set up a storefront where customers can explore your collections and immerse themselves in your identity – even on a third-party site. Target marketplace where your core audience already spends time – and ensure your content is super relevant for that group. For example, ABOUT YOU is a hub for Gen Z and millennial shoppers in the DACH region. Calvin Klein’s ABOUT YOU storefront features campaign images with celebrity and influencer collaborators, creating a clear, visually engaging connection with younger audiences.
- Launch your own marketplace: Consider creating a marketplace on your site, bringing in other brands and products that add value to your customers’ shopping experience. This lets you diversify your offerings and creates a more compelling reason for shoppers to return to your site.
Retail marketplaces are the key to gaining new customers, increasing brand awareness, and building loyalty. Rather than seeing them as a side channel, make them an integral part of your DACH expansion strategy.
Keeping Up with DACH Fashion Retail Trends in 2025
These trends aren’t just predictions – they’re your call to action. Enterprise brands that can keep up with the evolving consumer demands are the ones that will make their mark in 2025.
To discover how you can master 2025’s global fashion retail trends, get your free copy of Fashion Retail 2025: Strategies to Lead in a Trillion Dollar Market.