Consumer Attitudes & Online Retail Dynamics in Australia

Report Summary

Australian retail spending suffered a temporary setback in late 2010 and early 2011 due to the floods and Cyclone Yasi which affected Queensland and Victoria. The series of natural disasters in Australia led to an increase in inflation. Retail spending is also expected to be affected by the strengthening Australian dollar, as foreign imports and travelling have become more popular among the Australian population. However, a strong rebound is expected, driven by increased consumer confidence and strong labor conditions. ICD forecasts that per capita retail expenditure will grow at a compound annual growth rate (CAGR) of 4.03% during 2010–2015.

The Australian online retail market is, however, expected to perform relatively better, and it is forecasted to grow at a CAGR of 13.42% during 2010–2015. One of the main drivers of this growth is increasing internet and smart phone penetration in Australia. The growing consumer demand for online retail in the country has adversely affected traditional retail sales, with high-street retailers such as Harvey Norman and Target registering heavy declines in customer footfall and revenues.

As of 2010, Australia’s internet penetration was 72.9%. Australia currently ranks ninth in the Digital Economy Rankings, which indicates a high level of digital acceptance in the country. The amount of internet users grew at a modest pace during 2005–2010, with a CAGR of 4.68%. The amount of time spent online by the average Australian is increasing at a rapid pace. Over 58% of the population access the internet on a daily basis, spending more than 20 hours a month online. This increase in online users and their time spent online has led to an increase in online consumers and online retail expenditure.

Consumer Attitudes and Online Retail Dynamics in Australia' 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 latest best practice in online retail site design.  The report provides core insights into consumer behavior and highlights the latest online trends and their impact on online product sales. Core data sets give both historical contexts and a view into the future, allowing marketers to update their strategic planning and fill gaps in their knowledge about this rapidly evolving channel. By examining best practice from leading national large-scale online retailers, as well as reviewing innovative approaches from smaller players, the report also provides insights and ideas about how best to approach growing online sales for your business.  

Key Features

• Understand the consumer behavior and online trends in Australia; along with which products (of 25 different categories) will be the major winners and losers in the coming years.
• Improve market and strategic planning using highly granular, forward-looking market data.
• Learn from best practice approaches outlined in the case studies of leading online retailers.
• This report provides the magnitude, growth, share and dynamics of the online retail market.
• Core data sets give both historical contexts and a view into the future – providing data from 2005 through to 2015.
• By examining best practice from leading national online retailers, the report also provides insights and ideas about how best to approach growing online sales for your business.

Table of Contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.3.1 Overview
1.3.2 The triangulated market sizing method
1.3.3 Industry surveys in the creation of retail market data

2 Consumer Insight: Online Shopping Attitudes & Behaviours
2.1 Overview of the Australia Online Shopping Environment
2.1.1 Growing internet population to increase online retail spending
2.1.2 Faster internet connection enabling consumers access richer retail content
2.1.3 Popularity of internet capable devices to boost mobile retailing
2.2 Consumer Attitudes & Behavior
2.2.1 Online retail penetration in Australia highest globally
2.2.2 Australians spend 22 minutes monthly on online retail websites
2.2.3 Growing number of young online shoppers and increased buying power to boost online retail spending
2.2.4 Foreign retailers dominate the Australian online retail market
2.2.5 Australian online retailers fail to capture local consumer attention due to lack of innovation
2.2.6 Mobile commerce valued at AUD155 million in 2010
2.2.7 Apparel, accessories and luxury goods to increase its market share in the Australian online retail market
2.2.8 Consumers seeking retailer interactions on social media platforms
2.2.9 Credit cards most widely used payment mode for Australians

3 Online Channel Dynamics
3.1 The Online Channel’s Share of Total Retail Sales
3.1.1 Australia online vs offline channel forecasts
3.1.2 Online penetration: global and regional comparisons
3.1.2.1 Australia Online Retail Sales Penetration compared to Global Average
3.1.2.2 Australia Online Retail Sales Penetration compared to West European Average
3.2 Channel Dynamics
3.2.1 Australia retail channel dynamics - future performance
3.2.2 Channel group share development
3.2.3 Individual channel performance
3.3 Category Dynamics
3.3.1 Online vs offline retail sales comparison by category group, 2010
3.3.2 Online retail market dynamics by category
3.3.3 Online retail sales share by category group
3.3.4 Online retail sales growth by individual product category
3.3.5 Food and grocery categories: market size and forecasts
3.3.6 Electrical and electronics categories: market size and forecasts
3.3.7 Music, video and entertainment software categories: market size and forecasts
3.3.8 Apparel, accessories and luxury group categories: size and forecasts
3.3.9 Books, news and stationery categories: market size and forecasts
3.3.10 Sports and leisure equipment categories: market size and forecasts
3.3.11 Furniture and floor coverings categories: market size and forecasts
3.3.12 Home and garden product groups market size and forecasts

4 Case Studies: Leading Online Retailers in Australia
4.1 Retailer 1: Appliances Online
4.1.1 Business description
4.1.2 Site experience
4.2 Retailer 2: ABC Shop
4.2.1 Business description
4.2.2 Site experience
4.3 Other Innovative Retailers in Australia
4.3.1 Shoes of Prey
4.3.2 Zazz!

5 Appendix
5.1 Methodology
5.2 Contact us
5.3 About ICD Research
5.4 Disclaimer

List of Tables

Table 1: Australia Exchange Rate AUD–US$ (Annual Average), 2005–2010
Table 2: ICD Research Retail Channel Definitions
Table 3: ICD Research Retail Category Definitions
Table 4: ICD Research Retail Country Coverage
Table 5: Australia Channel Retail Sales & Forecast (AUD billion) by Channel Group, 2005–2015
Table 6: Australia Channel Retail Sales & Forecast (US$ billion) by Channel Group, 2005–2015
Table 7: Australia Channel Retail Sales & Forecast (% Share), 2005–2015
Table 8: Australia Online Sales vs Global Average
Table 9: Australia Online Sales vs Western Europe
Table 10: Australia Overall Retail Segmentation (AUD billion) by Channel Group, 2005–2015
Table 11: Australia Channel Retail Sales and Forecast (AUD billion) by Channel Group, 2005–2015
Table 12: Australia Channel Retail Sales and Forecast (US$ billion) by Channel Group, 2005–2015
Table 13: Australia Channel Retail Sales and Forecast (% Share) by Channel Group, 2005–2015
Table 14: Australia Channel Retail Sales and Forecast (AUD billion) by Channel, 2005–2015
Table 15: Australia Channel Retail Sales and Forecast (US$ billion) by Channel, 2005–2015
Table 16: Australia Retail Sales Split (AUD billion), Online vs Offline, 2010
Table 17: Australia Retail Sales Split (US$ billion), Online vs Offline, 2010
Table 18: Australia Online Retailers Market Dynamics by Category Group, 2005–2015
Table 19: Australia Online Retail Sales and Forecast (AUD billion) by Category Group, 2005–2015
Table 20: Australia Online Retail Sales and Forecast (US$ billion) by Category Group, 2005–2015
Table 21: Australia Total and Online Retail Sales in Food and Grocery Categories (AUD million), 2005–2015
Table 22: Australia Total and Online Retail Sales in Food and Grocery Categories (US$ million), 2005–2015
Table 23: Australia Total and Online Retail Sales in Electrical and Electronics Categories (AUD million), 2005–2015
Table 24: Australia Total and Online Retail Sales in Electrical and Electronics Categories (US$ million), 2005–2015
Table 25: Australia Total and Online Retail Sales in Music, Video and Entertainment Categories (AUD million), 2005–2015
Table 26: Australia Total and Online Retail Sales in Music, Video and Entertainment Categories (US$ million), 2005–2015
Table 27: Australia Total and Online Retail Sales in Apparel, Accessories and Luxury Categories (AUD million), 2005–2015
Table 28: Australia Total and Online Retail Sales in Apparel, Accessories and Luxury Categories (US$ million), 2005–2015
Table 29: Australia Total and Online Retail Sales in Books, News and Stationery Categories (AUD million), 2005–2015
Table 30: Australia Total and Online Retail Sales in Books, News and Stationery Categories (US$ million), 2005–2015
Table 31: Australia Total and Online Retail Sales in Sports and Leisure Equipment Categories (AUD million), 2005–2015
Table 32: Australia Total and Online Retail Sales in Sports and Leisure Equipment Categories (US$ million), 2005–2015
Table 33: Australia Total and Online Retail Sales in Furniture and Floor Coverings Categories (AUD million), 2005–2015
Table 34: Australia Total and Online Retail Sales in Furniture and Floor Coverings Categories (US$ million), 2005–2015
Table 35: Australia Total and Online Retail Sales in Home and Garden Products Categories (AUD million), 2005–2015
Table 36: Australia Total and Online Retail Sales in Home and Garden Products Categories (US$ million), 2005–2015

List of Figures

Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Internet Users and Penetration (millions), 2005–2010
Figure 3: Total Fixed Broadband Internet Subscribers and Penetration (millions), 2005–2010
Figure 4: Mobile Phone Users and Penetration, 2005–2010
Figure 5: Online Retail Sales and Online Retail Penetration as a Percentage of Total Retail Sales, 2010
Figure 6: Online Retail Sales and Online Retail Penetration as a Percentage of Total Retail Sales, 2010
Figure 7: Online Shopping Penetration according to Gender, Age Group, Personal Income and Region, 2009
Figure 8: Australia Forecasted Penetration and Growth according to Product Group, 2010–2015
Figure 9: Australia Channel Retail Sales & Forecast (US$ billion) by Channel Group, 2005–2015
Figure 10: Australia Online Sales vs Global Average (% of Total Retail)
Figure 11: Australia Online Sales vs Western European Countries Average (% of Total Retail)
Figure 12: Australia Overall Retail Market Dynamics by Channel Group, 2005–2015
Figure 13: Australia Retail Sales and Forecast (AUD billion) by Channel Group, 2005–2015
Figure 14: Australia Retail Sales, Online vs Offline, 2010
Figure 15: Australia Online Retailers Market Dynamics by Category Group, 2005–2015
Figure 16: Australia Online Retail Sales and Forecast (US$ billion) by Category Group, 2005–2015
Figure 17: Retailer 1 - Use of Online Space
Figure 18: Retailer 1 - Use of Images in Product and Brand Categorization
Figure 19: Retailer 1 - Product Filter and Thumbnail View
Figure 20: Retailer 1 - Product Information Page
Figure 21: Retailer 1 - 360OView of Product
Figure 22: ABC Shop - Website Overview
Figure 23: ABC Shop - Product Page View:
Figure 24: ABC Shop - Search Result and Product Filter
Figure 25: ABC Shop - Media Review Capability
Figure 26: ABC Shop - Customer Review and Suggested Selling
Figure 27: Shoes of Prey - Design Interface
Figure 28: Zazz! - Site Layout