Australia’s retail industry has managed to overcome the threat of global eCommerce giant Amazon, a new UBS report has found.
There were initially grave concerns for Australian retail brands when Amazon first launched its Australian website in 2017, with share prices falling sharply.
However, this latest report suggests these fears were overstated, with a lack of variety holding Amazon back.
“Range is the key impediment and we don’t see a material impact to incumbent retailers near [the] medium-term until this improves,” the report said.
“We believe Amazon’s ability to get key brands and category SKUs (stock keeping unit) has been limited. Our simple range analysis confirms this – of the key electronic brands across 6 subcategories, Amazon significantly lags JB Hi-Fi.”
In terms of bricks and mortar versus online retail, online shopping has grown 14 per cent over the past three years, however, this growth has slowed since February 2019.
With online shopping still only accounting for around nine per cent of retail sales, the UBS report suggests Australian brands should leverage their bricks and mortar sites to improve online penetration.
“While online sales growth should continue to outpace in-store sales, shoppers flagged stores are not dead,” said the report.
Despite encouraging signs for Australian brands, the report does suggest Amazon has established itself down under.
According to the report, 28 per cent of Australian shoppers having used Amazon and about 38 per cent expecting to purchase from it in the future.
“In our view, the key question for investors is: will Amazon be a major shopping destination for consumers? Around 28 per cent of shoppers surveyed said yes,” UBS said.
“While high, it’s down year on year with range being Amazon’s key issue. Our analysis of SKU count across 12 key electronics brands suggests Amazon’s Australian range is roughly 33 per cent that of JB Hi-Fi.
“Around 42 per cent of shoppers flagged Amazon is unlikely to be their primary shopping destination in 2019 vs. 28 per cent which said yes. This is a deterioration vs. the 2018 study.”
Please login with linkedin to commentAmazon
Sustainable soap brand Single Use Ain’t Sexy has been greeted with a huge influx of support after raising over half a million dollars in funding via a crowdfunding campaign. The brand has launched itself into the ‘green economy’ by calling on the Australian public to financially back them and their mission to get Aussies to […]
Queer Artist Ryan James Caruthers has publically slammed software company Unfold after it asked to use the artist’s work for free as part of its Pride Month social media campaign. Caruthers took to Instagram to show screenshots of the conversation he had with Unfold after it asked the artist to share 12 of his images […]
After relaunching in September last year, TWOOBS has become a ‘kinda’ shoe brand by also focusing on making the world a ‘kinder’ place and creating more consumer-conscious shopping. The vegan shoe brand founded by sisters Jess and Stef Dadon changed its marketing approach last year and stopped using social media to push sales the old-fashioned […]
Highly experienced tourism marketer Kelly Ryan has been appointed to lead the marketing efforts at Visit Sunshine Coast (VSC). During the past 12 years, Ryan has supported Canberra’s tourism industry in senior marketing roles, including as director of strategy and insights as well as director of marketing at VisitCanberra. Most recently, Ryan has been working […]
GHO Sydney has developed a new educational platform for Family Planning NSW to help parents and carers of children with disabilities navigate the changes to their bodies, emotions and social interactions. The project, ‘Planet Puberty’, was made possible through funding from the federal government’s Department of Social Services, and was co-designed with people with disability […]
JCDecaux today announced conservation organisation, Bush Heritage Australia, as its major charity partner for 2021. The partnership is part of a series of ‘social impact’ initiatives the business is launching this year, under the banner of JCDecauxHEART. JCDecauxHEART focuses on three areas of social impact: health and mental health, environmental sustainability, and enriching urban communities. […]
Shameless Media’s Michelle Andrews and Zara McDonald’s latest podcast, The Books That Changed My Life, will launch exclusively on LiSTNR on Tuesday, 15 June. Throughout the series Michelle and Zara will talk with guests including Kevin Kwan, Laura Henshaw, Jock Zonfrillo, Susan Carland, Hamish Blake and Delta Goodrem about the books that have had a profound impact […]
In celebration of Pride Month, cult streetwear brand Champion has announced an Australia-and New Zealand-first Pride range, Champions of Pride, and ongoing partnership with the Queer Sporting Alliance. Championing a cause, celebrating community, and aiming to create real change, the capsule collection proudly heroes the Pride colours in a selection of signature Champion tees, iconic […]
Following the successful deployment of BankiFi’s technology platform at The Co-operative Bank in the UK, BankiFi has appointed Lloyd Parata to lead their expansion into the Australian Financial Services market. BankiFi’s technology platform ensures banks remain relevant by offering SMEs an innovative solution to operate their business, whilst avoiding common challenges like late payment. Parata, […]
Mars Wrigley 5 Gum has partnered with Twitch to launch Team CLUTCH, a team of Twitch streamers who will assemble on for three live squad streams tackling popular games like Fortnite while embodying the brand’s ethos of ‘life happens in 5’. This partnership builds on 5 Gum’s 2020 Twitch activation, and is set to create […]