Consumer Goods

Consumer Attitudes and Online Retail Dynamics in Australia

  • CAN99142
  • 75 Pages
  • August 2012
  • Consumer Goods
Synopsis
Provides in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories), and reviews of the latest best practice in online retail site design. Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential contexts on the penetration of online sales by product groups, how growth has developed over time, and key drivers of this market in the future.
Scope
Understand the consumer behavior and online trends in Australia.

Understand which products will be the major winners and losers in the coming years.

Learn from best practice approaches outlined in the case studies of leading online retailers.

Improve market and strategic planning using highly granular, forward-looking market data. Detailed category coverage is provided, covering 25 products across eight product groups that include: Apparel, Accessories, Luggage and Leather Goods, Books, News and Stationery, Electricals and Electronics, Food and Grocery, Furniture and Floor Coverings, Home and Garden Products, Music, Video and Entertainment Software, and Sports and Leisure Equipment.


Assess the impact of economic recession and recovery on market growth.
Summary
Why was the report written?
Consumer Attitudes and Online Retail Development in Australia is the result of Canadeans extensive market research covering the online retail industry in Australia. It provides the magnitude, growth, share, and dynamics of the online retail market in Australia. It is an essential tool for companies active across Australias online retail value chain and for new companies considering entry into the Australian online retail market. It provides data for historic and forecast online retail sales, and also includes the business environment and country risk related to the Australian online retail environment. By examining best practice from leading national large-scale online retailers (but specifically excluding the likes of Amazon whose sites are well-known and vary little by country), as well as reviewing innovative approaches from smaller companies, the report provides insights and ideas about how best to approach growing online sales for your business.

What is the current market landscape and what is changing?
Traditional retailers are witnessing a consistent decline in customer footfalls and revenues as customers flock towards the online channel due to the high levels of convenience and competitive pricing. Traditional retailers have been uncharacteristically sluggish to adapt to the online channel despite its apparent advantages, a fact confirmed by the data and analytics firm Qauntium. According to the companys Market Blueprint analysis as of May 2012, of the leading 15 online retailers, only two were multi-channel retailers. Recently, however, there have been positive signs from both international and domestic retailers, who have launched their own online marketplaces or strengthened their online offerings.

What are the key drivers behind recent market changes?
Consumers have been reacting to the effects of the global recession, including the following recovery period, on their discretionary spending and retail markets have been no exception. While the country by country market changes have varied, nowhere has been left totally untouched. This report quantitatively examines the components of change in the market by looking at historic and future growth patterns including how changes in consumers behavior have affected the online retail sector for different product categories.

ReasonsToBuy
Purchases worth less than AUD1,000 made outside Australia are exempt from the GST. As a result, such purchases are considerably cheaper than local purchases and this has an adverse effect on traditional physical retailers. Major physical retailers such as Harvey Norman, Target and David Jones argue that this tax exemption is driving sales away from local retailers, leading to revenue losses. According to the National Retail Association of Australia (NAB), this could result in over 50,000 job losses within the retail industry, as retailers resort to implementing cost cutting measures. As a result, a number of local retailers have been lobbying the government to extend the GST on all foreign purchases or to lower the tax ceiling, in order to create a more level playing field for local and international retailers.
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