The next big move for luxurySeptember 9, 2013 / By Dr. Jane Murray
Hong Kong is great for shopping with many international brands present in the market. One thing I do miss though is being able to walk into a department store and buy my favourite Aussie brands of clothes. So I’ve been happy to see that Australia is catching on to the online shopping phenomenon – which means that I can now go online in Hong Kong and for a small fee have my purchases shipped here.
A recent survey by the National Australia Bank estimated that online retail sales currently account for 6% of traditional bricks and mortar retailing in Australia. While still a small percentage, it’s likely to grow substantially in the years ahead as retailers and consumers alike warm to the idea and benefits of e-commerce. Interestingly, some of the “emerging” markets are leading the way in this area, with the most notable example being China. According to a recent study by Bain and Company, online retail in China has grown by more than 70% a year between 2009 and 2012 and this year China is expected to overtake the United States to become the world’s largest e-commerce market.
Across Asia Pacific, we’ve also seen many of the emerging retail markets transforming rapidly with the aggressive expansion of international retailers, not only in China but increasingly South East Asia (see last week’s blog on new retailers in the Philippines). In Australia, international retailers are making a somewhat belated entry into the market but are now stepping up the pace of their expansion plans. Australia is a small country in the scheme of things with a population of 23 million, but the average income of its residents is around eight times that of Shanghai.
For more insights on the latest trends in Asia Pacific’s retail sector, take a look at our recently released Retail Cities in Asia Pacific publication, The Next Big Move for Luxury.
National Australia Bank (July 2013), NAB Online Retail Sales Index
Bain and Company (2013), China’s e-commerce prize
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