For companies ready to expand into a global market, Australia may provide the ideal option. Australia is one of the largest economies in the Asia Pacific region after Japan, China and Korea. As a result, Australia is a popular entry point for expansion between Asian and Pacific markets and the West. According to many economists, China’s continued growth holds the key to the development of Australian market for the decades to come.
Australia is one of the world’s best-performing advanced economies, and hasn’t had a recession for going on three decades – which is a big draw if you’re deciding where to expand business internationally. Currently home to around 25 million people, Australia has a fast-growing population. It is culturally diverse with around one in five people born overseas. Australia is predominantly an English-speaking population, meaning that international expansion for companies who trade in other English-speaking nations will find that the move is significantly smoother, and communication is clearer. The Australian economy enjoys a competitive advantage due to an abundance of natural resources together with a world class transportation and technology infrastructure.
Australia is currently the 14th largest economy, and the 10th largest ecommerce market in the world by revenue. The Australian E-commerce 2019 report reveals that 81% of people in Australia are shopping online, and trends suggest that in the near future one out of every ten items will be purchased from E-commerce stores. Australians are also quickly adopting international shopping traditions. Last year’s Black Friday and Cyber Monday sales saw a 28% growth in online shopping. It’s now become the biggest online shopping week of the year. Australians use these sales to save and enjoy online bargain hunting. Shoppers are also expanding the types of items they buy online, rather than in stores — including food, wine and holiday items. (Source: Australia Post)
Australians are among the most connected consumers in the world. Smartphones are changing Australia’s online shopping behavior. Each person has access to an average of three devices, which lends itself well for companies relying heavily on online and mobile sales. More and more Australians have switched from shopping on their computers to browsing the internet and making purchases through their mobile device (mCommerce). You will want to build shipping promotions into your marketing plan. Shipping costs are a deal breaker for most Australians. 65.5% of total orders delivered last year had free shipping. In fact, 60% Australians will abandon a shopping cart if the shipping cost is higher than expected. (Source: eMarketer, SAP)
Despite having a smaller population than many growing markets, Australia continues to be an ecommerce powerhouse within the global stage. There is a large middle and upper-middle class citizenship, with its service sector performing well and accounting for 68% of the country’s GDP. Direct Selling companies who can deliver exceptional customer experiences are going to come out on top in this A$28.6 billion industry. All in all, the future looks bright for Australian ecommerce.
*Statistical information comes from Direct Selling Australia Ltd