eCommerce: Market Insight

DIY & Home Improvement in Germany: Key Insights

• Market Concentration: The respective online platforms of Bauhaus, Hornbach, and Obi generated similar sales of around US$400 million in 2023. Other retailers with a focus on DIY & home improvement are less relevant in German eCommerce.

• First Choice Amazon: Amazon.de poses a challenge to DIY-focused retailers. Amazon's outstanding revenues in this product area are reflected by consumer preferences for immediacy and choice.

• Sustaining Covid-Related Growth: Recent sales declines for online stores with a DIY focus are in response to sudden spikes during the pandemic. In the case of obi.de, ECDB shows a typical development of online net sales over the last few years.

Three retailers lead the German DIY market: Bauhaus, Hornbach and Obi. Their respective online platforms are also the top sellers in German eCommerce, but Amazon still has advantages.

Learn about the net sales of the top DIY stores in 2023, how consumers prefer to shop for DIY & home improvement products online, and an example in case: obi.de.

2023 Revenues Remain Steady

The top 3 online stores on this list, bauhaus.info, hornbach.de, and obi.de, lead the way in terms of eCommerce net sales, while the remaining stores lag significantly behind. Within a range of about US$110 million, the top three stores are all centered around annual eCommerce net sales of US$430 million. 

Bauhaus.info ranks first, with 2023 eCommerce net sales of US$490 million. Hornbach.de follows with US$487.7 million, and obi.de lags at US$380.4 million.

The other specialist online stores in the top 5 fall further behind. Casando.de scored eCommerce net sales of US$135.6 million in 2023 and globus-baumarkt.de US$100.7 million.

Since this ranking is limited to online stores that specialize in DIY and home improvement, the list changes if it includes all online retailers that sell DIY products. Here Amazon outperforms all the others.

Amazon.de Sells Most DIY Online in Germany

Online net sales for DIY products differ somewhat from the previous ranking because online stores such as bauhaus.info, hornbach.de and obi.de also sell categories outside of DIY.

These include electronics, furniture, or hobby & leisure products. As a result, the figures below deviate from the total net sales of the stores: 

The most notable trend in this regard, however, is Amazon’s dominance in the DIY category. With 2023 eCommerce net sales of US$1.3 billion, amazon.de towers over the others.

The second-highest grossing online platform for DIY products in Germany is another generalist retailer: otto.de. But Otto’s DIY net sales are only slightly higher than those of the specialist retailers.

Why is Amazon so successful in a category where established specialists can’t hope to keep up?

Reasons for Amazon’s Dominance in the German DIY Market

DIY and home improvement retailer Hornbach reported back in 2018 that Amazon poses a challenge: amazon.de is the first choice for users looking to buy DIY products online.

Amazon offers an enormous range of products to its customers. The retail giant had a working infrastructure and online user base long before the pandemic accelerated the need for online retail solutions in 2020. By investing in start-ups working on smart home tools, Amazon has long made its strategy of offering innovative technology at competitive prices known.

According to the incumbents, despite a growing online offering, consumers largely prefer to shop in their brick-and-mortar stores.  

There are several reasons for this:

• Immediate acquisition of products in the store 

• Physical and tactile inspection of products 

• Personal advice and guidance from in-store staff 

• Spontaneous nature of DIY purchases: depending on weather, breakage of tools, inspiration, and other reasons.

For many of these reasons, Amazon provides the answer: immediate, same-day or next-day delivery, extensive product recommendations and rating systems, AI or social media consultation.

Top Online DIY Stores in Germany: 2023 Maintained Status Quo

2023 saw higher growth than in the previous year, with both bauhaus.info and hornbach.de having positive rates. Only obi.de appears to continue struggling:

To put these losses into perspective, the online net sales development of obi.de serves as an illustration of possible reasons for the decline:

Obi 2024: Online Sales to Reach US$400 Million

Obi.de saw consistent annual increases in online revenue in the years through 2021. While 2018 and 2019 saw moderate growth, with annual revenues of US$228.5 million and US$278.4 million, respectively, the pandemic brought a first surge in online revenues.

Pandemic Triggered Online Net Sales Surge

Growing at a rate of 55.9% of the previous figure, online net sales jumped to US$433.9 million in 2020. Of course, this development can be attributed to store closures and consumers’ caution to avoid public spaces during this period. 

In the following year, 2021, online net sales increased again by 27.6% compared to the previous year. As a result, obi.de generated revenues of US$553.5 million in 2021. This sudden growth also explains the sharp decline in the following years.

Post-Pandemic Normalization, Albeit at Higher Levels Than Before 2020

Obi's eCommerce business saw the largest decline in 2022, at 24.9%, and revenues declined further into 2023. This distinguishes Obi from its direct competitors who grew.

By 2024, forecasts expect obi.de to remain at the current level. Despite the losses of the last two years, obi.de’s online net sales are still well above what it generated online before 2020.

DIY in Germany: Wrap-Up

How can Obi, Bauhaus and Hornbach improve online sales? Connecting product discovery with a convenient strategy, which includes hybrid, can help ensure customers use the platform habitually.