Behind the scenes

Silver surfers? As if! Online shopping is booming among the young

9.5.2022

Translation: Katherine Martin

In the wake of the Covid-19 pandemic, digitec and Galaxus has gained almost a million extra private customers in Switzerland. A significant number of young people have made their first ever online purchase within the last two years. Meanwhile, the middle age groups have been keeping a looser hold on the purse strings. The older generation, on the other hand, have been slow to change their habits.

The Covid-19 pandemic has given online retail an unprecedented boom. In 2021, 2.23 million private customers shopped at digitec or Galaxus at least once – that’s 980,000 more than in 2019. Sales on both online shops increased by 85 per cent during the same period, while the Swiss online retail market as a whole grew by 45 per cent (linked site in German).

It’s been suggested a few times that silver surfers – that’s consumers over the age of 60 – are the main drivers of this strong growth. In Germany, the «Bundesverband E-Commerce und Versandhandel» (association of e-commerce and mail orders) reported that the over 60s were responsible for 31 per cent of online sales in 2020(linked article in German) – compared with just 23 per cent the previous year. What’s more, market researcher Euromonitor sees the purchasing habits of «digital seniors» as one of the most important consumer trends of 2022.

100,000 additional silver surfers in two years

In Switzerland, on the other hand, there’s little sign of a shopping frenzy among senior citizens – at least not among Digitec Galaxus customers. It’s true that around 100,000 more silver surfers bought from Switzerland’s largest online retailer in 2021 – that’s just over 40 per cent more than in 2019. However, their share of the total customer base has decreased to 12 percent. For comparison: at the end of 2020, a quarter of the Swiss population was over 60.

Between 2019 and 2021, only the number of customers under 30 grew at an above-average rate, from 17 to over 22 percent. The middle age segment of 30 to 49 year-olds has shrunk in proportion, but still accounts for over half of the customers who placed an order at digitec or Galaxus at least once in 2021.

But the number of customers per age segment is only half the story. After all, the e-commerce association mentioned above deals in sales. And there is indeed growth among silver surfers – even if it’s small, and at an especially low level: from 2019 to 2021, the proportion of sales generated by shoppers over 60 increased by 0.4 per cent to 7.6 per cent. However, this is a far cry from the 31 per cent proclaimed in Germany, let alone the 12 per cent figure mentioned above. And Digitec Galaxus isn’t an anomaly: seniors also make up 12 per cent of grocery retailer Migros Online’s customer base.

«In the last couple of years, many older customers have gotten used to shopping online, for example, because of convenient home delivery,» says Martin Walthert, who’s responsible for marketing at Digitec Galaxus. He goes on to add that younger customers are more strongly attracted by the services and brand presence of digitec and Galaxus.

To finish off, let’s compare the proportion of age cohorts who shopped at Digitec Galaxus at least once with the sales generated by these cohorts in both years. This comparison reveals customers in the 30-49 year age bracket to be more enthusiastic shoppers than your average customer. Those under 30, on the hand, are a little less so. The older the customers, the less they shop online.

«I suspect that the bulk of our customers and the sales they generate will come from increasingly higher age brackets over the coming years,» says Martin Walthert. After all, as a result of demographic trends, more and more people who’re already accustomed to shopping online are slipping into older cohorts. «We’re gearing our product portfolio towards this, too,» adds Martin Walthert. In recent years, for instance, Digitec Galaxus has added numerous mobile phones with large buttons, as well as walking aids or specialised health measuring devices to its range. Sales of these product groups are rising sharply, so Digitec Galaxus will continue to expand the range of products aimed at seniors.

How old were you when you bought something online for the first time? What year was it? Does your grandma buy more clothes, gadgets or sex toy from Digitec Galaxus than you? Are you a young customer blowing all your money on sneakers, consoles and games? Join the discussion in the comments!

17 people like this article

Alex Hämmerli

Senior Public Relations Manager

Alex.Haemmerli@digitecgalaxus.ch

At Digitec and Galaxus, I’m in charge of communication with journalists and bloggers. Good stories are my passion – I am always up to date.

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