Overview of the retail market in Australia
With the influx of foreign players in the market offering a wider range of products, the Australian consumers are becoming more sophisticated and demanding, generating more growth opportunities for the market players in this changing market. Retailers are increasingly providing additional value-added services to augment customer satisfaction to accomplish customer loyalty and attract new customers. Factors such as high spending power and quality infrastructure have made Australia one of the major target markets for several multinational retailers. The retail market in Australia is witnessing positive growth over the past few years and has become one of the top competitive markets across the globe. Technavio’s market research analyst forecast the retail market in Australia to grow moderately during the forecast period, posting a CAGR of almost 3% by 2020.
Analysis of the Australian retail market
Vendors in the market are shifting towards online and omni-retail channel strategy to maximize their reach and increase their profit shares. Both large and small brands are making their products available online, which is increasing the rate of online shopping in Australia. Also, the wide prevalence of online banking and internet connectivity has facilitated consumers to opt for online channels to buy their products. Technavio estimates that close to 80% of the Australians use smartphones to search or buy products online. Such trends have propelled several retailers to launch mobile websites and applications to improve the customers' shopping experience. Smartphones are also being extensively used to scan credit cards, loyalty reward cards, membership cards, and gift cards.
Take this report for a test drive: Get a FREE sample now!
Competitive landscape and key vendors
The retail market in Australia is extremely competitive and fragmented owing to the presence of both international and local players operating across the country. To sustain themselves in the intensely competitive market scenario, vendors are introducing innovative products to meet the changing consumer demands and increase their customer base. The competition will further increase during the forecast period with the entry of several new players, price wars, and mergers and acquisitions. The online platform will play a key role in the growth of the market in the coming years with the majority of the vendors opting for this retail channel.
Leading vendors in the market are -
- ALDI Stores
- JB Hi-Fi
- Metcash
- Woolworths
- Wesfarmers
Segmentation by product and analysis of the retail market in Australia
- Apparel and footwear
- Beauty and personal care
- Consumer electronics and appliances
- Food and beverages
- Household products
Apparel and footwear will be the fastest-growing segment in the Australian retail market during the forecast period. The innovations of international brands in the market coupled with favorable conditions such as high disposable income and growing inbound tourism have made Australia an attractive marketing region to international players both in terms of the fast fashion and the luxury fashion markets. Fast fashion retailers such as Zara, Topshop/Topman, Uniqlo, and Forever 21 and luxury fashion houses such as Prada, Hermes, and Gucci have increased their presence in the market, positively contributing to the growth of the overall market.
Growth drivers, challenges, and upcoming trends: Demand for discount and low-cost retail offerings
The retail market in Australia is witnessing a trend where customers are increasingly shopping at stores that offer products at low prices. More than half of the consumers in Australia are willing to shop at discount stores closer to their home. With shopping going the smart way, people are more into buying goods rather than stocking up on a weekly basis. This has pushed several small retail formats such as convenience stores and independent stores to grow in small towns and suburbs across Australia. Also, the pop-up stores are becoming common in the market. Retailers such as Myer have set up pop-up stores in Melbourne in Southern Cross Station and Sydney Bondi Junction to sell small items. Many international brands are also using this platform to build awareness and promote a specific product.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the retail market in Australia. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the retail market in Australia?
- What are the key market trends impacting the growth of the retail market in Australia?
- What are the challenges to retail market growth?
- Who are the key vendors in the retail market in Australia?
- What are the market opportunities and threats faced by the vendors in the retail market in Australia?
- Trending factors influencing the retail market shares of APAC, Europe, North America, and ROW.
- What are the key outcomes of the five forces analysis of the retail market in Australia?
Want to buy multiple reports? Technavio’s subscription platform gives you easy access to our entire library, along with on-demand services. Try it out today!