Online Shopping vs. Bricks-and-Mortar
Ten years ago we would have laughed at the thought of purchasing our clothes, let alone our groceries from an online retailer. Now, in a society pressed for time, the tedious task of hitting the shops has been reduced to a hassle-free click of a mouse button; and voila – milk, delivered straight to your door.
The latest figures from the ABS show that retail figures are flat, as sales have contracted sharply by more than three per cent over the past year. In comparison, Internet shopping is picking up the pace with online retail consumption growing rapidly. A recent report from the Commonwealth Bank shows that online retail stores knocked 1.3 percentage points of b-a-m retail stores top-line growth in 2011, with similar trends expected for the remainder of this financial year. The total amount of precious money spent online by Australian consumers in 2011 was – hold your breath: $248.5 billion. That’s one very big pie for brands without an online presence to be missing out on.
So, why are so many consumers making the shift from brick-and-mortar, to online? It’s pretty straightforward really: Lower prices, due to fewer overheads, and of course, convenience. Yes – shopping online means you can purchase goods at 3am and you don’t even have to get dressed. Win.
Analysts at Frost & Sullivan have predicted Australian online retailing to grow by up to fifty per cent over the next four years, sparking huge demand from many companies to invest in non-traditional means of delivering their product and/or services.
It would be naive to suggest that brick-and-mortar retail is completely dead, it isn’t. But the fact remains that as technology allows consumers to purchase goods in a fast and easy manner, from anywhere in the world, brands are going to be expected to keep up, or lose out. The era of E-commerce is well and truly upon us.







