Danes have the largest wealth in Europe: What does it say about spending?
Who holds the highest wealth in Europe?
At the beginning of the year, Danes’ wealth was record high, with their total assets amounting to an impressive DKK 6,480 billion. This makes Danes the wealthiest in Europe, but what does it really reveal about our spending habits?
Are we spending more money on online shopping after COVID-19?
Two particular trends that emerged from the COVID-19 crisis are especially interesting to observe – we are now spending significantly more on online shopping and takeaway than before. As a result of the restrictions during the pandemic, Danes' online spending increased by 21.5% in 2020 compared to the previous year.
The European Championship adventure might be over for Denmark this time, but when it comes to savings, we're not so easily beaten... We are, in fact, the European champions in wealth – according to a new report from the Danish National Bank.
High wealth = low consumption?
The more money saved, the higher the wealth. But does that necessarily mean Danes have low consumption? The answer is: partly. Several factors come into play. Due to the coronavirus pandemic, spending dropped below normal levels, creating favorable conditions for saving. In 2020, private consumption in Denmark decreased by 2%, but this is minimal compared to what other European countries experienced. For example, Germany saw a 6.1% drop in private consumption.
The decline in Danish private spending was also smaller than expected, partly due to the payout of holiday funds in the fall. With more money in their pockets, the crisis didn't hit as hard for many Danes, providing opportunities to save. However, even if we look beyond consumption patterns during and after the crisis, it turns out that Danes were already quite frugal before the pandemic. We have a knack for holding on to money and building wealth.
But now that the crisis (hopefully) is nearing its end, could we soon see an increase in private spending?
Consumption trends stemming from the coronavirus crisis
Low consumption or not, there’s no doubt that the crisis has influenced Danish buying behavior. At the beginning of the pandemic, many Danes acted impulsively, clearing shelves of toilet paper and non-perishables – though this fortunately did not develop into a lasting trend.
Later in the crisis, the focus shifted towards “supporting local” businesses, encouraging people to shop at local stores and order food from nearby restaurants. This message resonated with Danes, creating a strong incentive to purchase takeaway from local eateries. Evidence suggests that this consumption trend may be here to stay.
Spending on Online Shopping and Takeaway
Two particularly interesting trends have emerged from the coronavirus crisis – we are spending significantly more on online shopping and takeaway than ever before. Due to restrictions during the pandemic, Danes’ online spending increased by 21.5% in 2020 compared to the previous year. Much of this spending went towards books, hobby items, and groceries.
There is now substantial evidence that online shopping has taken root, with Danes likely to continue making more purchases online in the future, highlighting the importance of having an online solution. Unsurprisingly, takeaway purchases also surged during the pandemic as people sought to limit exposure. Takeaway giants like Just Eat, Hungry, and Wolt all experienced significant growth as a result of this trend.
Since the COVID-19 outbreak, we at Shopbox have also noticed changes in Danish consumer behavior. We’ve observed a growing interest in the use of webshops and ordering apps among our customers. Over the past year, we’ve worked tirelessly to address the needs of Danish businesses. This has resulted in a solution where you, as a Shopbox customer, can get your very own digital menu or website, complete with your brand’s colors, images, and logo. Your customers can place orders whether they’re at home or seated in your restaurant.
Additionally, we’ve made it possible to integrate your Shopbox cash register system with your webshop, ensuring seamless communication across your entire business.
Read more about how Danish consumer habits have shifted in the wake of COVID-19 in an interview with Shopbox co-founder and chairman, Christian Zigler, here.