In the last few years there has been a substantial increase in internet penetration and the digital presence of people around the world and subsequently, in Australia. In short, Australian ecommerce is booming.
Why? With the internet becoming more and more accessible and the adoption of trends occurring rapidly, the online driven lifestyle has a far-reaching impact on mass consumer buying behaviour, thus resulting in a digital consumption surge.
For more on the Australian ecommerce market, check out the full article at WebAlive -a really useful primer for the space.
The inevitable has happened – clothing is the number one ecommerce category by sales according to ComScore.
As we all know I’m sure, Consumer Electronics has long been the King among stuff sold online, in part because of the early adopters of the Internet where more inclined to buy this stuff (read: geeks). Nevertheless, what’s perhaps more surprising is how long clothing has taken to surpass electronics.
There are three reasons for this I believe. The first is the aforementioned change in the makeup of consumers aka now everyone buys online, not just those geeks. Secondly, the smartphone has both consumed the entire electronics category – the PC, Laptop, Home Audio, TV, Camera, Camcorder and other devices are now largely mobile devices. Lastly, retailers are finally accepting folks want to buy clothes wherever – at home, in the office and not all in store anymore.
This is profound change and as always there will be winners and losers. Free shipping and returns – a standard for clothes where people often try before they buy – will put further pressure on bricks and mortar retailers. Brands will also begin participating in more direct to consumer stuff i.e why give a retailer margin when you can sell direct?
All in all, the brands stand to win and off course consumers will win. But what about both offline and online merchants? They have to suck it up.