With Amazon finally announcing its plans for the Australian market a new study has found the online behemoth may not be a shoe-in when it comes to the grocery side of the business due to Aussies’ reluctance to buy their groceries online.
A study by Roy Morgan Research has found that although interest in buying groceries online was high (some 30 per cent of respondents), the fact was as little as three per cent of us actually do it.
So despite positive sentiment for the idea, shopping for groceries online still remains niche in Australia. The question is -will the introduction of high-speed grocery delivery service AmazonFresh change that?
News that Woolworths has established a special task force to address this threat is no surprise: Woolworths customers are marginally more likely to do their grocery shopping online (4.2 per cent doing so in an average four weeks) than those who mainly shop at Coles (4 per cent), ALDI (1.4 per cent) or IGA (1.2 per cent).
Supermarket customers who buy groceries online vs those who’d consider it
That said, grocery-buyers who mainly shop at Coles are more likely to consider doing some of their grocery shopping on the internet in the next 12 months (32.1 per cent) than those who mainly shop at Woolworths (30.6 per cent), ALDI (28.5 pr cent) and IGA (19.6 per cent).
But does this mean that the local supermarket scene is going to be destroyed? Not necessarily. Roy Morgan’s recent Retail-focused State of the Nation report highlighted certain industry trends that may well work in supermarkets’ favour, even once Amazon hits town.
- As mentioned, the long-standing gap between consumers who say they’d shop for groceries online and those who actually do it suggests that immediate mass uptake of AmazonFresh is unlikely.
- Australians are making more visits to bricks-and-mortar stores, at least partly due to the growing ‘retailtainment’ trend, whereby their shopping experience is enhanced with an extra entertainment element. Savvy supermarkets are already tapping into this with such add-ons as in-store cafés, tastings or cooking demonstrations: something an online grocery service cannot compete with.
Commenting on the findings, Roy Morgan CEO, Michele Levine, said: “Online grocery shopping is not widespread in Australia yet, but the arrival of AmazonFresh looks set to up the ante with its quick-delivery, low-priced service.
“It’s worth noting that customers who mainly shop at Coles or Woolworths are more likely than the average grocery buyer to be Technology Early Adopters, and as such, more open to radical new e-commerce propositions such as AmazonFresh.
“But the threat of AmazonFresh is not just about technology, it’s about competitive pricing, service and real estate. With heated price wars already characterising the current Australian supermarket scene, a new player of this magnitude will undoubtedly appeal to grocery shoppers, especially when Amazon CEO Jeff Bezos has already declared, ‘Your margin is our opportunity’.
“Meanwhile, as traditional supermarkets reduce the range of brands they stock in favour of a greater selection of home brands, the sheer diversity of brands available on AmazonFresh may also appeal to shoppers.
“The incumbents, however, have the advantage of physical locations within easy reach of every shopper. Although Amazon is venturing into the offline space, with its first cashier-less, bricks-and-mortar Amazon Go grocery store currently operating in beta-mode in Seattle, it remains some way off rolling out these stores in Australia. This advantage will buffer local supermarkets while they gauge and respond to the impact of AmazonFresh’s arrival.”
NAB, in partnership with TBWA\Melbourne and Mindshare, has unveiled its latest campaign dubbed “Wrangle Your Money”. The national campaign demonstrates how NAB is supporting and empowering customers to make better financial moves. As part of the “More Than Money” brand platform, the latest work comes at a pivotal time as the country continues to grapple […]
Activation Union is thrilled to announce the appointment of Bree Mankin as Managing Partner. In this pivotal role, Bree will spearhead the agency’s growth initiatives and client strategy, leveraging her extensive experience and innovative approach in delivering exceptional results for her clients. With over two decades of experience in marketing and communications, Bree is a […]
Toyota Australia has launched its highly anticipated new all-electric vehicle, the bZ4X, on Australian shores through a nationwide integrated campaign. Spearheaded by a big spot, the campaign was created by independent creative agency HERO, which sees a typical EV sceptic named Barry behind the wheel of an all-new Toyota bZ4X much to the surprise of […]
Canva has announced its very first podcast: Design Surfaces. Covering all areas of design, from brand campaigns to UX flows, the podcast digs deep into the intricate parts of designers’ brains to unearth valuable insights, unique perspectives, and what makes them tick. The Design specialty at Canva is made up of some of the most […]
SBS is searching for its most daring, unflinchingly fearless and boundary-smashing factual format yet, issuing a call out for impactful ideas for new documentary series unlike anything seen on Australian screens before, with up to $50,000 in development funding on offer. Announced this morning at the Australian International Documentary Conference (AIDC) in Melbourne, SBS is […]
Full-service media agency Resolution has appointed Sarah Truong as head of investment to lead the agency’s investment product. Sarah joins from PHD where she was Group Investment Director for half a decade. With 14 years’ experience in the media industry including seven years at media agency, Carat, Sarah a proven track record for delivering results-driven […]
Brisbane Economic Development Agency (BEDA) has launched a new domestic tourism campaign, Brisbane Favours the Bold, this week, appealing to those who search for the unexpected to discover the new Brisbane. Created in partnership with VML and dentsu Queensland, the campaign aims to redefine perceptions of Queensland’s thriving capital, strengthen awareness of Brisbane’s leisure offering, […]
Are Media, Australia’s leading omnichannel content company for women, today unveiled the keenly anticipated first issue of the new ELLE Australia magazine. The 244-page Bright Young Things issue – featuring actor Sophie Wilde on the cover – clearly stamps ELLE Australia as the fashion bible for smart, stylish Gen Z and millennial women who love […]
The Sydney Roosters are facing a huge amount of fallout over allegations that Spencer Leniu made an on-field racial slur against Broncos player Ezra Mam in yesterday’s Las Vegas season opener. Mam filed an official complaint against Leniu after the Roosters prop allegedly called the Broncos five-eighth a “monkey” on the field. Leniu tried to […]
To celebrate International Women’s Day, The Association for Data-Driven Marketing and Advertising (ADMA), has launched a new initiative to honour and spotlight the dynamic women in the marketing sector across the country. Lead image: ADMA Website This year, as the world embraces the theme #InspireInclusion for International Women’s Day on March 8, ADMA is asking […]
KIA's marketing boss coy on how much all these stars cost. Was even more coy on the bar tab at the end of the shoot...
With the Easter break historically one of the busiest on our roads, Nine.com.au and Drive today launched a month-long campaign to raise awareness of the importance of defensive driver training courses. Too many young drivers are killed or injured on our roads each year. Younger drivers are the most overrepresented group in this tragic statistic, […]
Rolling Stone Australia publisher The Brag Media has today unveiled a stellar list of nominees for the 2024 Shure Rolling Stone Australia Awards, which return to Sydney on Tuesday, March 26, with a star-studded party to celebrate Aussie music. For the first time, the 2024 edition of the awards will take place at Ivy Sydney […]
Free TV has said that today’s announcement by Meta that it will not be renewing any of the deals struck with Australian media companies for use of news content on its platforms should be met with swift action by the government. Meta today revealed it will walk away from funding Aussie journalism once the current content […]