Australian online shopping drives retail change
New research released by PricewaterhouseCoopers and business research and consulting firm Frost & Sullivan shows that the growth of online shopping is forcing structural changes to the Australian retailing business model.
The report says online shopping expenditure in Australia is projected to reach $16 billion in 2012. This represents an increase of 17.6% from 2011 when Australian consumers spent $13.6 billion online. The report predicts that by 2016, $26.9 billion will be spent online.
In 2012, according to the report, 9.6 million Australians aged over 15 will make online shopping purchases.
Driving the growth
The growth in online shopping is attributed to a number of factors. Consumers’ finding better value for money online is the primary reason people give for shopping online, along with a wider variety of choices. The spread of mobile devices and the increasing comfort and trust in shopping online have also influenced the rise. According to the report, in 2012 so far, 34 per cent of online transactions were made via mobile phone.
The authors of the report believe that the strong Australian dollar has contributed to the fact that 75 per cent of Australians shopping online are making purchases from overseas websites.
Changing the face of retail
The continuing growth of online shopping means the traditional retail model is at a critical junction. Rapid changes in technology and a broader range of competitors means retailers must constantly update their online strategies to meet new customer demands and options.
The report sees the future in terms of a retail model that is continuously evolving to meet the demands of increasingly sophisticated consumers and rapid adaptation to new technologies.