Australian online grocery growing seven times faster than total market
With the arrival of American online retail giant Amazon into the Australian grocery market imminent, discount platform CupoNation has compiled a new study analysing the giants of e-grocery in Australia.
Despite Australia’s grocery e-commerce accounting for only 2 per cent of total global grocery sales, it is growing seven times faster than the total market, CupoNation reports.
Analysis by the Nielsen Company predicts that online consumer spending will inject up to $2 billion of sales into the Australian grocery industry over the next five years.
Woolworths the leader in website visits
The e-grocery market in Australia is dominated by three major players at present – Woolworths, Coles and Aldi.
Ranking average monthly website visits, Woolworths achieves almost 2 million more monthly visitors than Coles, at just over 9 million.
The monthly visits to Amazon Australia average 4.11 million, more than two times fewer than Woolworths.
With the arrival of Amazon imminent, Woolworths continue to expand its services, growing its online ‘Click and Collect’ service from 400 to 970 stores nationwide.
Coles the social media kings
Social media has become one of the most important marketing weapons for e-grocers, with Facebook the most used platform.
Coles leads the way, with over 1.2 million Facebook followers.
Woolworths ranks second with just over one million followers, ahead of Aldi who have just over half a million.
Twitter and Instagram followers of the major Australian grocers pale in comparison to Facebook, with numbers in the tens of thousands.
In total, on the three social media platforms Coles reaches 1.32 million users and Woolworths reaches 1.11 million users.
Advantage of apps
Mobile grocery shopping through an app is a way to engage customers and have an omnichannel shopping presence according to CupoNation.
Of the major Australian supermarkets, only Woolworths and Coles currently have a shopping app, with Coles achieving 500,000 downloads, five times as many as Woolworths.
- Australia’s online grocery sector analysis, Nielsen
- Amazon, Whole Foods, and the future of supermarkets
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Established supermarkets around the world work from a pretty similar, well-honed playbook.