EXCLUSIVE: GFK Predicts Online Following The Arrival Of Amazon

As GFK gets set to operate, without data from Australia’s big consumer electronics stores, the German research Company has moved to predicting the market for consumer electronics and appliance sales in an online world, which is set to be impacted by the arrival of Amazon.

The research reveals that clothing, tickets and events and books are more likely to be bought online Vs a PC or tablet, large appliance, audio device or wearable technology.

In a briefing to select clients the research group has said that currently online sales in Australia is worth $22.74 billion, 7.4% of Sales via bricks and mortar consumer electronics stores that are currently up around 3% in the 12 months to June 2017.

Two thirds of Australians place orders online from home via a laptop or desktop PC. Going forward this is expected to move to smartphones and tablets. Purchasing via a mobile device has increased 52% during the past year. 85% of consumers typically make a purchase via a retail or shopping app at least once a month claims GFK.

Media and homeware, is among the top items purchased while consumer electronics accessories come in at #4. A PC or tablet purchase is #11.

Technology categories most likely to be purchased online are the more personal ones and often the lowest priced.

A recent study by GFK that asked consumers where would consider buying various tech categories, online or a physical Store, it revealed that more Australians are buying their new smartphone online.

The top drivers for shopping online are saving money, convenience range and delivery options. Nearly 2/3 expect online to be cheaper than instore and 80% expect an online discount of 10% vs instore.

The barriers to online for a lot of people are personal detail security, reliability of delivery and the cost of delivery. Free delivery is being more important than same day delivery claims GFK.

Amazon

With the arrival of Amazon expected soon nearly half expect “faster delivery” and 4 in 10 consumers expect a better and more expanded range than what is currently being offered in Australia. One in four are aware of Amazon Prime and of those, half say they have a good to excellent understanding of it.

The likelihood of Australians taking up Amazon Prime is in line with the awareness levels for their Amazon service said GFK.

By 2020 image and speech search will be 50% of the market with the arrival of Amazon Alexa set to drive a move to speech management. Currently only 1 in 5 of Australians are currently aware of Echo or Alexa.

Tomorrow we will cover Australians attitude to “delivery methods” while also revealing what GFK see as the future for online retailing.

To obtain a copy of this report or if you want to engage with GFK call them on T +61 2 9900 2888.