##{"id":59565,"date":"2012-02-27T13:12:10","date_gmt":"2012-02-27T02:12:10","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/02\/27\/75-of-oz-online-sales-spent-locally\/"},"modified":"2012-02-27T13:12:10","modified_gmt":"2012-02-27T02:12:10","slug":"75-of-oz-online-sales-spent-locally","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/02\/27\/75-of-oz-online-sales-spent-locally\/","title":{"rendered":"75% Of Oz Online Sales Spent Locally"},"content":{"rendered":"

\n\t – NAB launches online retail sales index
\n\t – Index shows domestic retailers account for bulk of online sales
\n\t – Growth in online retail remains well above bricks and mortar
\n\t – Strongest growth coming from under 30s<\/span> demographic<\/strong><\/p>\n

\n\tBy Chris Shaw<\/p>\n

\n\tWith online shopping a booming market, National Australia Bank has joined forces with Quantium<\/span>, a data analytics firm, to launch the NAB Online Retail Sales Index. The Index offers an analysis of trends in online spending in Australia.<\/p>\n

\n\tFor 2011 the Index recorded 29% growth in online spending, achieved on total online sales in Australia of $10.5 billion. Of this, almost 75% of online sales were made with domestic based retailers, the balance with overseas-based online retailers. <\/p>\n

\n\tOf the two the growth rate for international sales is higher, growing at 40% per year compared to 25% sales growth for domestic online sales. Despite the growth, NAB head of consumer sectors, David Thorn, notes online sales still only account for about 4.9% of retail spending.<\/p>\n

\n\tThe pace of growth in online retailing slowed across the second half of 2011, Thorn noting by the end of last year growth in year-on-year terms had pulled back to around 20%. This is still well above the growth rate for traditional retail sales of around 2.5%. Online sales also showed less seasonality than traditional retail sales, though the lead up to Christmas remains the peak period for both online and traditional retail sales.<\/p>\n

\n\tAs Thorn notes, changing consumer preferences and spending habits are contributing to some structural changes in the retail sector. But with 95% of sales still coming through bricks and mortar stores, the key for retailers remains the type of goods sold, who the buyers are where the retailer is located. <\/p>\n

\n\tThis means a decision as to whether online should be introduced as a compliment for an existing business model or whether the focus should be further attempts to reinvigorate an existing physical store presence.<\/p>\n

\n\tNAB's Index divides online retail goods into four categories, the largest being Auctions, Department Stores, Fashion, Cosmetics and Variety stores, which accounted for around 50% of all online retail goods bought in 2011.<\/p>\n

\n\tIn contrast, Thorn points out while food is traditionally the major category in physical retailing, the Groceries, Liquor and Specialised<\/span> goods category is the smallest of the four in NAB's Index at just 13%.<\/p>\n

\n\tThe other two categories are Home, Furniture, Appliances and Electronics and Recreation, Toys, Games and Hobbies, Music, Movies and Books, both of which account for around 20% respectively of all online retail sales. <\/p>\n

\n\tIn demographic terms, the Index showed online spending is concentrated among people aged in the 40s<\/span>, 30s<\/span> and under 30 age group, each accounting for around 23% of total online sales. While those in their 30s<\/span> and 40s<\/span> make the most purchases, the strongest growth in online sales is coming from the under 30s<\/span> age group.<\/p>\n

\n\tFrom a geographical perspective NAB's Index showed New South Wales accounts for 35% of online retail spending, following by Queensland and Victoria. The strongest growth in online spending over the past two years has come from Western Australia. <\/p>\n

\n\tThe NAB Online Retail Sales Index will be produced monthly. <\/p>\n

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