Consumer Attitudes & Online Retail Dynamics in Australia

Synopsis
"Consumer Attitudes & 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.

Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential contexts on the penetration of online sales by product groups, how growth has developed over time and key drivers of this market in the future.

Summary
This report is the result of ICD’s extensive market research covering the online retail industry in Australia. “Consumer Attitudes & Online Retail Development in Australia” provides the magnitude, growth, share, and dynamics of the online retail market and is an essential tool for companies either active in this sector or which are seeking to target this channel.

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 - providing data from 2005 through to 2015 and 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 (but specifically excluding the likes of Amazon whose sites are well-known and vary little by country), 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.

Together these three core elements; market dynamics, consumer understanding and best practice examples will allow readers to easily understand the nature and development of online retail in Australia and provide insight into how best to exploit the opportunities in the market.

Scope
The report analyses online consumer behavior, market dynamics and best practice approaches to online retail in Australia. In particular, core market data sets cover 8 product groups and 25 individual product markets within Australia.

Product Coverage:
Clothing & Footwear
Jewelry & Watches
Luggage & Leather goods
Printed Media
Stationery & Cards
Communications Equipment
Computer Hardware & Software
Consumer Electronics
Household Appliances
Photographic Equipment
Drinks
Household Products
Packaged Food
Personal Care
Tobacco
Unpackaged Food
Floor Coverings
Furniture
Gardening & Outdoor Living
Home Improvement
Home Wares
Games Software
Music & Video
Sports Equipment
Toys & Games

Reasons to Buy
This report provides readers with unparalled levels of detail and insight into the development of online retail sales within Australia:

- Understand the consumer behavior and online trends in Australia
- Understand which products will be the major winners and losers in the coming years
- Assess the impact of economic recession and recovery on market growth
- Learn from best practice approaches outlined in the case studies of leading online retailers
- Improve market and strategic planning using highly granular, forward-looking market data

Key Highlights
The 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. The high fuel prices in Australia will have a trickledown effect and further increase the prices of retail goods. The Reserve Bank of Australia forecasts consumer price index (CPI) inflation to remain between X.XX%–X.XX%, during 2011–2013. 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. The International Monetary Fund (IMF) expects the unemployment rate will drop steadily until 2016. Following the current economic and market trends, ICD forecasts that, per capita retail expenditure will reach AUD XX,XXX.X by 2015, at a compound annual growth rate (CAGR) of X.XX% during 2010–2015.

The Australian online retail market is, however, expected to perform relatively better. In 2010, it was valued at AUD XX.X billion, and it is forecasted to grow at a CAGR of XX.XX% during 2010–2015. One of the main drivers of this growth is the increasing internet and smartphone 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. This is largely due to their inability to adjust to new developments in the market and their failure to understand online consumer dynamics. Innovative online retailers, however, have been steadily gaining ground with increasing customer conversion rates, website hits and revenues.

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

Related research categories

By sector: Retail (in Off-trade), Consumer (in Trends)

By market: Australia (in Oceania)