Market Trends of Australia E-commerce Industry
This section covers the major market trends shaping the Australia E-commerce Market according to our research experts:
Rise in Purchase Frequency and Online Spending
- As reported by Australia Post, more Aussies are shopping online, with four-in-five households, 81% buying something online at some point during the year. Aussie shoppers spent an incredible USD 62.3 billion on online physical goods in 2021. Such high grossing in online sales indicates the country's rising interest in e-commerce.
- Furthermore, the report outlined the growth in spending on online physical goods was strong in 2021, at 23.4% year on year. This growth is primarily due to the new habits that have formed since the onset of the pandemic. Ongoing restrictions further strengthened this growth and encouraged shoppers to continue to buy online more frequently.
- Australia outperforms other countries in the number of consumers shopping online at least once a month. Furthermore, the rise in digital advertising by E-commerce companies through social media platforms is further increasing online spending and generating more product sales. With extensive shopping experience, technology-savvy shoppers are on-trend and knowledgeable. They are more likely to value efficiency and purchase from digital native retailers to get detailed product information and better customer service.
- As reported by Australia Post, as the popularity of online shopping continues to grow, so too does the number of online purchases made, with national year-on-year growth of 12.3% in 2021. An astounding 73.1% more purchases were made online in 2021 compared to 2019, demonstrating the significant change in shopper behavior over the past two years. Metro areas have experienced more restrictions due to the pandemic and, as a result, have seen slightly higher growth than regional. Households in inner regional areas contributed the most online purchase growth.
- All of the aforementioned factors are further expected to fuel the E-commerce market in the region over the forecast period.
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Fashion and Apparel Segment is Expected to grow significantly
- The fashion and apparel segment is anticipated to witness significant growth. This growth is primarily governed by athleisure and footwear sales, with both of these sub-categories seeing a significant increase through July and August.
- Moreover, Cyber Week saw the most significant uplift in purchases of fashion and apparel products as people made a jump start on Christmas shopping and bagged bargains as they prepared for the busy party season. Apart from actively participating in sales events such as Black Friday and Prime Day, some online retailers adopted new technology to provide a better customer experience throughout the online shopping journey.
- Moreover, with high smartphone and internet penetration, brand-building over paid ads through social media platforms and short videos further attracts consumers to buy fashion and apparel products through online channels in the region.
- Consumers in the region have become increasingly conscious of how their online shopping habits impact the environment; they're beginning to seek out retailers taking steps to reduce their carbon footprint. Australian shoppers mainly prefer sustainable products in fashion, apparel, grocery, and beauty products. Furthermore, the region's younger generation demands a strong position on social and environmental issues such as sustainability. Many market players in the region started sustainable practices to gain new consumers and market share in the region, which is further expected to grow the E-commerce market.
- All mentioned factors are further expected to boost the E-commerce sales of fashion and apparel products over the forecast period.
