Online Shopping continues to grow
Melbourne, Australia (PRWEB) May 06, 2012
Online shopping is on the lips of millions of Australians, but it was not always this way. Online retailing was made possible by technological innovations that occurred over time, and it took years for online retailing to attain the scale, credibility and reliability that now see it storming after shopfront retailing models in a variety of Australia’s retail industries. Online shopping has evolved into a secure, efficient and viable method of shopping for time-poor and tech-savvy consumers. Revenue generated by Australian Online Shopping industry is expected to increase 8.6% per annum over the five years through 2011-12 to be worth $10 billion. This will include growth of 9.1% in 2011-12. According to IBISWorld industry analyst Naren Sivasailam, ‘Demand over this period has been driven by growth in disposable incomes, greater consumer confidence about shopping online, an increase in the range of goods on offer, better efficiency across the transaction process and an explosion in the number of online retailers’. Although growth has slowed recently, the industry has become a leading sales platform for many retailers.
As online retail moves to become a normal retail method, growth will slow marginally. Over the five years through 2016-17, industry revenue is expected to increase. ‘Industry players are expected to place greater focus on their marketing techniques in a bid to differentiate themselves from the growing number of competitors’, Sivasailam adds. Anticipated growth in disposable incomes and continued increases in the IT literacy of the Australian population are expected to bode well for online retailers.
Market share concentration on the Online Shopping industry has grown over the past five years due to the continued consumer acceptance of the internet as a valid shopping medium. A multitude of new operators have flooded the industry over the past five years, all vying for a share of the online market. The resulting growth in enterprises has led to a rapid expansion in the range products and services offered online. Concentration is set to strengthen over the five years through 2016-17. This will occur as operators become better equipped in their supply of goods and consumers overcome fears associated with purchasing something without physically touching or seeing it and credit card safety. To this end, the industry is poised to experience further mergers and acquisitions as a growing number of businesses recognise the growth potential of online enterprises. The largest players in this industry include Woolworths and Apple.
For more information, visit IBISWorld’s Online Shopping report in Australia industry page.
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