Online retail sales increased 0.6 per cent in August following a sharp decline in July. Traditional sales, however, still fell slightly during the month. The daily deals market is collapsing. In August it recorded its fourth consecutive decline of over 15 per cent. Has reality finally caught up with the Little Business Model That Couldn’t?
Of course any gimlet-eyed view of the overall online retail story needs to be tempered by the fact that online remains a relatively small part of the retail mix, and still only contributes single digits to the total market.
According to the NAB, “In dollar terms, we estimate Australians spent $17.5 billion on online retail in the 12 months to August 2015. This level is equivalent to 7.1 per cent of spending at traditional bricks and mortar retailers as measured by the ABS (excluding cafes, restaurants and takeaway food, to create a like-for-like comparison) in the 12 months to July 2015.”
Death of the deal makers
The daily deals sector is struggling, and that’s putting it kindly. It was the only sector to record a decline last month and it was a shocker — down 16 per cent. Worse still, that’s on top of a 25 per cent decline in July and a 23 per cent decline in June. We can go on if you like. The group buying sector also shed 26 per cent in May.
According to Telsyte senior analyst Steve Noble, “More often than not, customers treat the internet as a discount channel — or at least as a channel that stands out for how easy it makes it to compare prices.
“Daily deals have a place in this channel, but they are not the game-changers they initially presented themselves as. They will have to content with a fairly small share of the large and growing online retail pie,” he said.
Growth accelerated for electronic games and toys (+27.2 per cent year-on-year), which still leads growth, along with media (+17.7 per cent year-on-year), fashion (11.4 per cent), and personal and recreational goods (+7.3 per cent). Growth was stable for department and variety stores (1.9 per cent year-on-year), while both grocery and liquor and homewares slowed.
This article originally appeared on B&T’s sister site www.which-50.com
Independent brand and digital agency, Archibald Williams (AW) has been appointed to lead the NBA account across the APAC region. The NBA is one of the most prestigious sporting leagues in the world and basketball is one of the fastest-growing sports in Australia. Effective immediately, AW said it was “excited” to work across all digital, […]
B&T's shining a light on industry folk prior to adland. Preference given to anyone purporting actual UFO abduction.
Leading digital outdoor company QMS has announced it is the first-ever inaugural partner for Most Contagious APAC, the landmark London event by creative and strategic intelligence company Contagious, which will be showcased in Australia on Tuesday, 12 December in Sydney and Wednesday, 13 December in Melbourne. Most Contagious is an event that delivers key advertising […]
Omnicom’s data and analytics division Annalect has partnered with Meta, giving it access to Advanced Analytics (AA) – one of Meta’s privacy-focused measurement solutions – to provide Omnicom’s clients with future-proof, next-level measurement. Omnicom is the first holding company to have access to AA. AA allows advertisers to combine their first-party data with Meta’s ads […]
WPP’s AKQA has launched Fixmas.gift, an environmentally conscious AI-powered DIY assistant, affectionately known as Fixie, for a one-stop solution for all things repair. Fixmas.gift hosts an array of guides and inspiration to empower people to prolong the lives of their belongings or purchase pre-owned items that need a little love and care. Fixie can: Help […]
Marc Collister (pictured) of P2 Content Creators spills the beans on his 2024 predictions drawing from two decades of experience in the advertising, film and television industry. I’m certain it will come as no surprise that in 2024, we can expect our industry to move at breakneck speed again. With even more rapid shifts in […]
Zeno Australia has announced expanded creative design capabilities and the appointment of Jim Michell (lead image) to its senior leadership team. The new moves support strong growth in the region. Zeno Australia’s clients, including Abano Healthcare, Motorola and Yorkshire Tea, can now tap into a suite of creative design services to augment the agency’s work […]
Assembled Media, is drawing upon the creative power of TikTok Creator Marketplace to help generate unique, impactful content for iconic stationery brand, BIC. The social activation campaign titled ‘A Pen for Every Side of You’ promotes the flexibility of BIC’s 4 Colours pen and is active nationwide on the BIC Stationery TikTok account. The campaign […]
Pinterest reckons jellyfish & moody cowboys will be big in 2024. Refused to be drawn on the return of shoulder pads.
IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series, which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide […]
Scope3, the collaborative sustainability platform leading the decarbonisation of media and advertising, announced the addition of digital out-of-home (DOOH) to its emissions measurement. With DOOH ad spending predicted to grow from $17B in 2023 to nearly $24B by 2028, measuring this channel brings us one step closer to understanding the total impact of digital advertising […]
NRF 2024: Retail’s Big Show Asia Pacific, is now open for online registrations for the main conference. Jointly organized by the National Retail Federation and Comexposium, Retail’s Big Show Asia Pacific will take place from 11 – 13 June, 2024 at the Sands Expo and Convention Centre in Singapore and is expected to draw thousands […]