Rising online market threat Australian offline retail companies

In UBS research in second ‘Clicks & Bricks’, 56 per cent of Australian visit Amazon.com.au, and 22 per cent of customers already bought something. 29 per cent of them consider the Amazon as a major shopping outlet.

Australian shoppers are spending less on retail and hospitality, the Ai Group's PSI says. (AAP) Source: AAP

Eric Johnston, Business Review Editor in The Australian, analysed that ‘Australian retailers have just entered the danger zone’.

In UBS research in second ‘Clicks & Bricks’, 56 per cent of Australian visit Amazon.com.au, and 22 per cent of customers already bought something. 29 per cent of them consider the Amazon as a major shopping outlet.

In 2018, Australia online market increase 8 per cent, faster than 2013 (5 per cent), and it will take 14 per cent of market share in Australia retail market.

FNZC, one of the industry research companies, researched price differences between Woolworths, Coles and Amazon;

• Average 18 per cent expensive (Woolworths) and 25 per cent expensive (Coles) compare with Amazon.com.au.
• More than 50 per cent cheaper when you buy a cosmetic product in Amazon.
• Coles has more than 30 per cent expensive price in hair product and cleaning product.

According to the Financial Review, Woolworths and Coles are fall in dilemma between more discount and lose some market share to Amazon.