Key Trends in the ANZ Online Shopping Market


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Frost & Sullivan Analyst Briefing on the Key Trends in the Australia & New Zealand Online Shopping Market

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Key Trends in the ANZ Online Shopping Market

  1. 1. Key Trends in the Australian & New Zealand Online Shopping Market<br />Phil Harpur<br />Senior Research Manager<br />Digital Media, Australia<br />29th August 2011<br />
  2. 2. Australians & New Zealanders Embrace Online Shopping <br />Strong uptake in online shopping during last 12 months<br />Purchasing on overseas sites driving growth especially in Australia<br />Heightened market awareness & growing consumer acceptance.<br />Development and expansion of new channels:<br /><ul><li>brands selling direct to consumer, Social Commerce, Mobile Commerce, Group Buying
  3. 3. Online & offline experiences are merging.
  4. 4. Consumers want to shop across all channels ‘anytime, anywhere, & on any device’. </li></li></ul><li>The Most Comprehensive ANZ eCommerce Study to Date<br />METHODOLOGY<br />Survey of 1,200 consumers (1,000 in Aus & 200 in NZ), 15 to 65 years old who had shopped online in past 12 months<br />30 interviews with retailers (both online-only & traditional bricks-and-mortar) & other industry observers<br />Comprehensive review of secondary data sources.<br />ONLINE SHOPPING DEFINITION<br />Online purchasing of physical merchandise such as clothes, books, & electronic items<br />Excludes services such as travel & accommodation, financial services products & media downloads<br />
  5. 5. Market Outlook and Forecast<br />Online shopping expenditure in Aus to reach $13.6 billion, a growth of 13% from the $12 billion expenditure in 2010.<br />In 2011 NZ market to reach NZ$2.60 billion, an increase of 12%<br />Almost 90% of online shoppers in Aus will increase or maintain their online spending over the next 12 months. <br />Aus market predicted to grow to $21.7 billion by 2015, CAGR of 12.5% (7.2% of retail sales)<br />
  6. 6. Australians embrace Shopping on Overseas Sites<br />Approx44% of online expenditure in Ausis on overseas websites, up from 40% in 2010<br />Overseas retailers - increasingly targeting ANZ market <br />Weakness of US dollar has made purchasing on overseas sites more attractive<br />Local retail chains facing increased competition from growing number of Online Retailers both locally & internationally<br />Often seen as cheaper / offering greater variety<br />Technology improvements providing greater price transparency<br />Retailers in certain retail sectors more vulnerable as offshore Online Retailing grows. <br />
  7. 7. Main Reason for Purchasing From Overseas Websites<br />
  8. 8. Australians embrace shopping via mobile devices<br />Shopping via mobile devices (smartphones / Tablet PCs) becoming increasingly popular:<br /><ul><li>another channel for consumers to shop
  9. 9. tool to assist in overall shopping process</li></ul>Immediacy aspect - available anywhere & anytime<br />More opportunities to engage shoppers when & where they’re making buying decisions<br />Location Based Services e.g. Facebook places <br /><ul><li>used to geo-locate customers & send offers as they pass a store</li></ul>Price Comparison via Barcode Scanning <br /><ul><li>Rapid adoption in US and Europe</li></li></ul><li>Social Commerce is expanding rapidly<br />social commerce- usage of social media tools to facilitate commerce<br />Social Media strategyused minimal marketing budget to:<br /><ul><li>help deliver fast & efficient customer service
  10. 10. enable easy running of cost-effective promotions
  11. 11. drive interaction between consumers </li></ul>Social Media tools now adopted by most Online Retailers in ANZ. <br />SME retailers in particular finding success – levelling the playing field<br /><ul><li>Shoes of Prey
  12. 12. customer emailed photo of shoes when shipped
  13. 13. Product design ideas comes directly from customers
  14. 14. AussieBum
  15. 15. YouTube - one of its key promotional tools </li></li></ul><li>Frost & Sullivan 2011 Australian Digital Media Program<br />1) The Australian Online Classifieds Market <br />2) The Australian & New Zealand Online Shopping Market <br />3) The Australian Online Video Market<br />4) The Australian Online General and Mobile Advertising Market<br />5) The Australian Online Search and Directories Market<br />6) Australian Online Advertising Market – Year End Overview and Outlook<br />
  16. 16. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter<br /><br /><br /><br /><br />
  17. 17. Contact <br />Donna Jeremiah<br />Corporate Communications <br />Asia Pacific<br />+603-6204-5832<br /><br />Carrie Low<br />Corporate Communications<br />Asia Pacific<br />+603-6204-5910<br /><br />Phil Harpur<br />Senior Research Manager, Digital Media<br />Asia Pacific <br />+61 (0)2 8247 8900<br /> <br />