BUSN20016: Online Shopping Impact on Retail - Australian Market

This report analyzes the growth of online shopping in Australia, highlighting an 11.5% increase in 2017 compared to 2016. It discusses the reasons for this growth, including convenience, product comparison, and improved online experiences provided by retailers. The report also examines the market share of online versus retail sales, noting that while online spending increased by 6.9% in 2017, retail sales still hold a significant portion of the market. It identifies millennials and baby boomers as key demographics driving online shopping and highlights the growth in specific sectors like fashion, variety stores, and print media. Furthermore, the report touches upon the impact of geographical differences and the increasing demand for personalized goods and mobile shopping. Temple & Webster is mentioned as a successful online furniture retailer. The report concludes by noting the overall increase in online spending by Australians, emphasizing the ongoing shift in retail trends. Desklib provides students with access to similar reports and solved assignments.

1
Running head: SECONDARY DATA AND DESCRIPTIVE ANALYSIS
SECONDARY DATA AND DESCRIPTIVE ANALYSIS
Name:
Professor:
Class:
Date:

2
SECONDARY DATA AND DESCRIPTIVE ANALYSIS
Secondary and descriptive data of the research
Australian’s online shopping grew by 11.5% in 2017 from 2016. Many people prefer
online purchases for many reasons. One of the main benefits is that consumers can compare
different products from a wide range of products offered online. Additionally, online platforms
offer cheap and convenient products. Many Australian citizens are aware of the online shopping,
and they have frequently utilized it. The number of parcels delivered online over the last 12
months has grown by 16% per shopper. The sophistication of online retailers has become a
significant driver for this change. Companies have developed strong brand loyalty and
familiarized the product to consumers. Businesses are also providing improved online
experiences and created various ways of delivering the product. Online spending in 2017
performed more than retail selling (startrack.com, 2017).
According to the statistics, the online spending increased by 6.9% in 2017 from 2016.
Despite this, retail selling also occupies a considerable market share in Australia, with a total
value of $261 billion in terms of physical goods. Online had a total of $18 billion physical
products in 201. Research has revealed that for the three months period in 2017, approximately
9.7 million people in Australia shopped online (startrack.com, 2017). Millennials are
contribution a significant portion of online shoppers in Australia. The age of 25 to 35 are the
heavy user of internet and hence have adapted to the online shopping. Baby boomers also top the
list of online shopping with their most income used in demographics. Retailing businesses are
changing quickly in order to compete with online shoppers. Fashion and variety store leads on
the online shopping. Together, they have contributed for more than half of online shopping. The
fashion department reported a growth of 17% while the variety recorded an increase of 7% from
2016. The Print and Media department is increasingly having an impact in online shopping.

3
SECONDARY DATA AND DESCRIPTIVE ANALYSIS
This department recorded a significant increase of 23% from 2016. It is mainly contributed by a
change from physical bookstores to online book purchases (webalive.com, 2017). Geographical
differences are also having an actively contributing to the growth of online shopping. This is
necessitated by the strong economic growth in major cities such as South Wales and Victoria.
The trend was positive in 2016 and 2017 as compared in 2015. It is undoubtedly true that online
shopping has already established itself and also reached its maturity. However, if a more
aggressive player makes way into Australian’s domestic market, this would increase the demand
for online shopping.
According to the latest finding, the demand for personalized goods has improved by
28.2% in 2016 from 2015. Many retailers are offering a variety of products online. They can
provide consumers with personal touches and co-design services (startrack.com, 2017). Online
shopping through mobile devices has also become familiar to Australians.

4
SECONDARY DATA AND DESCRIPTIVE ANALYSIS
There was an increase of 52% in 2016 from the previous year. However, although online
shopping is still done via desktops and laptops, the rates have decreased by 10% and 6%
respectively from 2015.
From the statistics, Temple & Webster is the best online Company selling furniture in
Australia. In 2015, it advertised more than 140,000 products on its website. In 2016, it had a
total sales of $61.7m. The trend is similar for food and other departments which are expected to
increase in the future (webalive.com, 2017).
According to the government, Generally, Australian it have used $21.65 billion on online
shopping. It was used in purchasing both the physical and digital goods such as electronics and
take way food. There was an upward trend in 2016, where it increased to 10.4% in spending
compared to the previous year.
References
Startrack.com (2017) Inside Australian Online Shopping. Retrieved from
https://acquire.startrack.com.au/pdf/Inside%20Australian%20Online%20Shopping%2020
Webalive.com, (2017) Australia’s Growing E-commerce Industry and How It Is Changing Retail
Trends. Retrieved from https://www.webalive.com.au/future-of-australian-ecommerce/