A new study from Germany's digital association Bitkom reveals how European retailers are adapting to changing consumer behaviour and increased competition from international platforms.

Social Media Becomes Essential Marketing Channel

Nearly six in ten German retailers (59%) now maintain business profiles on social networks to promote their products. The trend extends beyond organic content, with 31% investing in paid social media advertising and 27% enabling direct purchases through these platforms.

Facebook leads platform adoption at 65%, followed by Instagram at 53%. Professional networks LinkedIn (42%) and Xing (40%) also feature prominently, whilst TikTok has gained traction with 30% of retailers establishing a presence.

The influence flows both ways: 37% of retailers report that social media trends directly impact their product offerings, demonstrating the shift from one-way broadcasting to interactive commerce.

Influencer Partnerships Remain Limited

Despite the growth of creator economies, only 13% of German retailers currently work with influencers, with a further 9% considering such partnerships. The hesitation stems from balanced perceptions of risk and reward—44% believe influencers can build product trust, whilst 46% worry about potential damage to brand reputation.

Dr Bernhard Rohleder, Bitkom's chief executive, notes that successful influencer partnerships require careful alignment:

"The influencer must not only have reach and credibility but also fundamentally match the company and its values."

Traditional Channels Still Dominate

Despite social commerce growth, established sales channels remain primary. Nearly all retailers (97%) operate their own websites, with 89% accepting email orders and 78% selling through online marketplaces.

However, 48% of retailers recognise social media's ability to reach customers unavailable through traditional channels. One-third (33%) predict that by 2030, consumers will primarily shop for products through social media platforms.

Competition Pressure Mounts

The study highlights significant competitive challenges facing European retailers. Two-thirds (67%) report increased pressure from discount marketplaces, with particular concern about Chinese platforms—84% of retailers consider these to represent unfair competition.

Economic uncertainties affect 90% of businesses, whilst 48% struggle with weak domestic demand and 46% with reduced international demand. High export tariffs create additional barriers for 43% of retailers.

Digitalisation Lags Behind Recognition

Whilst 87% of retailers view digitalisation as an opportunity, only 30% consider themselves leaders or early adopters. Two-thirds (66%) classify themselves as followers in digital transformation, with 2% believing they've missed the opportunity entirely.

The benefits are clear: 95% report simplified ordering processes, 92% enjoy improved partner communication and 83% value freedom from opening hours restrictions. However, concerns include increased competition (90%), data protection complexity (89%) and loss of personal customer contact (68%).

AI Adoption Remains Cautious

Artificial intelligence presents both opportunities and challenges. Currently, 25% use AI in customer service, 22% for content generation and 18% each for personalised recommendations and inventory management.

Concerns outweigh enthusiasm: 81% worry about AI-generated fake reviews damaging their business, whilst 61% fear losing direct customer relationships. Two-thirds (66%) lack staff with relevant AI expertise.

Despite hesitation, 61% acknowledge that AI-using competitors gain advantages and only 17% consider AI a temporary trend.

Hybrid Retail Model Prevails

The study confirms retail's hybrid future. Only 6% operate exclusively online or offline—86% maintain both physical and digital presence. Whilst 32% could envision online-only operation by 2030, most recognise that physical retail serves distinct customer needs.

Price pressure remains significant: 72% believe physical stores cannot match online pricing, yet only 11% see no future for traditional retail.

Implications for European Retail

The findings suggest European retailers are cautiously adapting to digital-first consumer behaviour whilst maintaining traditional strengths. Success appears to depend on strategic integration of social commerce with established channels rather than wholesale platform migration.

The competitive threat from international discount platforms represents a particular challenge for European businesses, potentially requiring coordinated policy responses alongside individual company adaptations.

The study surveyed 505 German retail companies with 10+ employees between March and May 2025.