M&S has recently launched a website in Australia as part of its overseas expansion, and has found ways to tailor its offering for the Australian market. They are the latest in a long line of British and international brands taking advantage of the growing appetite for online shopping and cross-border commerce in Australia and the APAC region. The Ecommerce Worldwide report on Australia states that, by 2018, 8.4 million Australian shoppers will make a cross-border purchase.
It may have a lower population than the UK (24 million people compared to over 64 million in Blighty) but Australia covers more than thirty times the physical space – great news for Click & Collect and for apps like Booodl, which lets users discover and save products and then receive alerts when these products are available to purchase at a nearby store. Luckily, internet adoption (80% penetration) is high, as is smartphone usage – over 60% of those with a phone have a smartphone. More than a third of Australian households contain four or more ‘connected devices’. That’s a lot of chargers.
Purchasing products online is also on the rise. Retail ecommerce in the region was expected to exceed US $10 billion in 2015. Online sales represented 6.8% of total retail spend between October 2013 to October 2014, according to National Australia Bank, and eMarketer claims ecommerce sales will reach AU $32.56 billion by 2017. 60% of the population shop online – the highest percentage in the APAC region.
Channel marketing is helping brands reach more consumers. Our product data feeds, for example, are powering some pretty successful Google Shopping campaigns for our client Havaianas in Australia.
“Online and social data, mobile, customer experience and relevancy are key focuses for us going forward. FusePump supports us through Google search integrations, feeding relevant information to a relevant audience in real time.” Julie Georgiadis, Digital Marketing & Ecommerce Manager at Havaianas
Programmatic marketing is really taking off in a big way: Australia is ahead of the US and the UK for mobile and video programmatic trading, according to the Boston Consulting Group (BCG), thanks perhaps to a more concentrated market. Indeed, programmatic ad spend was set to increase by 24.9% to US $724m in 2015.
Digital marketing spend overall has gone from 3% of total marketing budgets to 27% since 2003, and continues to rise. And the region is still very much in favour of combining the art with the science of marketing: in a recent study by Econsultancy, very few respondents in Australia and New Zealand said they felt like technology was crushing creativity. Only 18% of those from companies and 26% from agencies felt that this was the case.
Our latest report looks at some of the unique digital commerce opportunities in this region. Download the free report now: Australia and ecommerce February 2016.