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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.
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.
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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 -
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.
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.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Australia: Country profile
PART 06: Market landscape
PART 07: Market segmentation by product
PART 08: Segmentation by retail formats
PART 09: Positioning by product category
PART 10: Market drivers
PART 11: Impact of drivers
PART 12: Market challenges
PART 13: Impact of drivers and challenges
PART 14: Market trends
PART 15: Vendor landscape
PART 16: Appendix
PART 17: Explore Technavio
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