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Australian And New Zealand Online Shopping Market And Digital Insights

3225 words - 13 pages

Contents
1
Introduction 3

2
Executive summary 5

3
Research findings 8

4
Appendix 51

Digital media research 2012 | 2

Introduction

1

Digital media research 2012 | 3

Definition and methodology
The definition of online shopping we use is online purchasing of physical merchandise such as clothes, books, and electronic items. This covers the same merchandise categories as used in the retail sales statistics published by the Australian Bureau of Statistics and Statistics New Zealand, and therefore online sales can be directly compared with total retail sales. The study excludes online purchasing of services such as travel & accommodation, event ticketing, financial ...view middle of the document...

Where appropriate, we have made year-on-year comparisons to illustrate market trends. Survey findings have been supplemented with data from Frost & Sullivan‟s Australian Mobile Device Usage Trends Survey, conducted in June 2012, which surveyed all Australian consumers aged between 15 and 65 that currently use the Internet. Additionally we undertook 30 interviews with retailers (both online only and traditional bricks and mortar) and other industry observers, supplemented by a comprehensive review of secondary data sources. We believe that this is one of the most comprehensive analyses of online shopping in Australia and New Zealand undertaken to date. Data in this report is for calendar years, unless otherwise stated. Dollar values quoted relate to Australian dollars, again unless otherwise stated.

Digital media research 2012 | 4

Executive summary

2

Digital media research 2012 | 5

Executive summary

75%
of Australians who shop online currently make purchases from overseas sites

Online shopping has continued to attract considerable attention over the past year, with its development widely believed to be at least partly contributing to the challenging conditions experienced by much of the retail sector in Australia and New Zealand. Whilst online shopping is not a new phenomena, its take up has grown significantly in recent years, driven by factors such as the greater variety/ choice of goods on offer from an increasing number of online retailers both locally and internationally, widespread usage of mobile devices by consumers to access the internet, the strength of the Australian and New Zealand dollars (which has made purchasing from overseas websites more attractive) and an increasing level of comfort amongst consumers towards the online shopping process. Improved search engine functionality, price comparison tools and sites, and a rising penetration of smartphones and tablet PCs, which allow any time/any location accessibility as well as barcode scanning, are all increasing pricing transparency. As in recent years, lower prices is the key driver for shopping online - 55% of online shoppers in Australia and 51% in New Zealand indicate that lower prices than in physical stores is the most important reason why they shop online.

In response, many Australian and New Zealand based retailers have launched or reinvigorated their online strategies over recent years, but they still generally lag many of their overseas peers in terms of the volume of sales through the online channel. Shopping via mobile devices, both smartphones and tablet PCs, is becoming increasingly popular as it provides consumers both with another channel to shop and a tool to assist them in the overall shopping process. This is stimulating growth in online expenditure. The development of new channels such as brands selling direct to the consumer, often facilitated by social media channels such as Facebook, is also driving further growth in online shopping....

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