Australia can be known for lots of things such as the kangaroos, welfare or the famous actresses like Nicole Kidman or actors like Hugh Jackman or even the fact that Gina Rinehart, who is the richest person in Australia, makes a million dollar every half an hour.But our perspective is more set on the e-commerce market which has been flourishingin the country. You might call Australia the place to make a jump start in the e-commerce market. But before telling you all about that here is the former Prime Minister Bob Hawke setting a world record for sculling 2.5 pints of beer in 11 seconds. Hawks says this experience was the main reason for his success in politics.
Australian Market In A Nutshell
Australia has the world’s 12th largest economy. It is one of the wealthiest countries in the world considering economy, education, political rights etc. It has the 2nd place in the global human development index. The cities of Australia like Melbourne takes 1st and following places in most liveable cities list in The Economist‘s annual evaluations.
Australian E-Commerce Sales (in billions)
The 94 percent of the population has access to internet which creates a feasible environment for internet based sectors. The 79 percent of this community goes online on a daily basis also. The e-commerce sales has reached 37.1 billion dollar in 2013. Every age group has shopped online and the %73 of users who belong to 35-44 age group are leading. Top 3 categories in online purchases are Travel/Accomodation, CD/Music/DVD and Clothes/Jewelry. The most common payment types are Paypal and credit cards. The purchases are made mostly on Australian websites but there is a big share of overseas websites in the ecommerce market also. Also the online shoppers of Australia lead the Asia Pacific markets and the estimations for 2016 is about 4500 dollars per buyers.
The fact that Australia did not fall into a depression in the 2008 financial crisis plus the strength of the Australian dollar creates a very safe environment economy-wise. The people in Australia are also very integrated with social media. Their purchasing decisions usually source from the social media research they do initially. If a business needs to succeed in this environment, the certain requirements are: good quality of service, social media integration and a good shipping operation. The younger generation of customers is not focused on local brands as the older ones are and this generation can be the loyal customers of new businesses from overseas too. The basic point is to have a good shipping system so the quality of the service is not harmed by negative delivery conditions.
Major Online Retailers in Australia
BIG W has over 17,000 employees all over Australia. The mission of the company is to offer the best quality with the best price. They are offering Australia’s Lowest prices Everyday. If the customer finds an identical products in terms of brand, model number, style even weight the company guarantees to match their price on the spot.
Booktopia is an 100 percent Australian owned and operated company.The company was ranked in the Top 20 online retailers of Australia in 2012. They are creating an alternative to retail giants such as Amazon and also happy to give back to Australia through taxes, job offerings or charity. Their charity campaigns are society oriented. One of the projects held by Booktopia and Cathy Freeman Foundation is a motivation based project. The students who improve themselves in 6 months, receive a book pack from Booktopia. In South West Sydney, a project is held to support vulnerable families by providing them with books to home teach their pre-school children. They provide the families a brief demonstration about how to teach their children the letters and how to help them engage more with books through libraries. The company was listed in the BRW Fast 100 in 2009, 2010, 2011 and 2012 as one of the fastest growing companies in Australia.
Brands Exclusive is Australia’s one of the leading online private shopping clubs. The company sells over 800 brands fashion and lifestyle products with up to 70 percent discounts. They are supplying the products from the brands themselves. To shop online with brands exclusive the customer needs to register to the system. The membership requires an invitation but it is free.
Catch of the day is an online daily deal site. It supplies the products in unknown amounts from the brands themselves. The products can be supplied from the excess stocks of every brand. The catch of the day is changing everyday and the dynamic movement is increasing the sales. The 24 hours sales policy also protects the products’ normal retail market position. The attractive side of the website comes from its mystery. No one knows what the next product can be, the quantities are limited, so people have to act quickly and the prices are the best for the items.
Deals Direct is an online department store one of Australia’s best. The company offers 10,000 brands with a huge range in 23 categories with discounted prices. The delivery services are 7 days a week with tracable delivery partners such as Australia Post and Allied Express. They offer payment types such as PayPal, BPAY, Visa, Visa Checkout and Mastercard.
Dick Smith is a major retailer on consumer electronics with 386 stores across Australia and New Zealand. It operates in multi-channels online shops, mobile shops, mobile apps and click-and-collect. Dick Smith sponsors the Melbourne Stars, tennis tournaments such as The Hopman Cup, The World Tennis Challenge, The Brisbane Interneational and The Apia International in various places in Australia. The company also sponsors the National Rugby League, Auckland Nines and is a supporting sponsor of AFL club and Richmond.
The company has over 30 years of experience of retailing in the Australian Wine Industry and it is located in Melbourne. The company specializes at end of run products such as bin end wines, super premium Australian wines like Penfolds Grange, Henschke, Mt Mary. The 80% of the business is held online. The tasting room of the company is located in Richmond and they have contacts all over the major wine regions of Australia.
The Good Guys is one of the leading retailers of consumer household appliances in Australia, operating since 1952 when the brand name was Mighty Muirs. In 1998 the retailer rebranded itself as The Good Guys. The company delivers quality electronics at competitive prices. Since 1952 the company has grown into 98 stores across Australia.
This website has been chosen the best in ecommerce for the digital consumer experience index in 2013. The website allows the users to compare products but also the variations of design in a single location. The payment choices are well represented and well segmented from online purchases to buying in a store. And the check out process is easy to complete.
Australians are very active online and they are interested in learning more about the product they are buying. Australia itself has the highest standards in the world in every matter. To enter the e-commerce sector in Australia, one must have a fast and good shipping system. Another important matter is to serve at a high quality because the Australians will not put up with less quality. Make sure to create a good content, create a fast shipping system, give the right prices and never back out on quality. Also having an Australian staff and contributing to Australia can be a positive factor to be acknowledged in the sector. After going through the top online retailers it is possible to see that they are promoting their Australian identities and they are proudly contributing by paying their taxes. So if you are entering the sector from another country make sure to value what they value.
Nil Erden – Marketing Executive – email@example.com – Prisync.com
We, as Prisync team, will be covering e-commerce markets of different countries from all around the world and will focus on the insights that are specific to each respective market.