Australia has ranked seventh in the world for internet penetration, with key drivers being high incomes and accessibility to products, according to IBISWorld.
Nearly 90 per cent of Australians are online surging ahead of the United Kingdom which ranked 14th and the US that came in at 27th place. Over the coming five years, IBISWorld forecasts the uptake for Australia will increase to over 95 per cent.
As a result of Australia’s increasing reliance on new technologies it has brought with it forecasts for the demise of many industries.
“Broadband internet, cloud computing and smartphones have initiated change across a variety of industries,” Karen Dobie, IBISWorld Australia general manager, said. “The uptake of technology has seen a dramatic change in the way Australians research products, access services, shop and consume news, media, entertainment and more.”
However, surprisingly bricks and mortar retail trade has been listed as one industry that is defying the odds. IBISWorld reports annualised growth for the industry from 2007-08 to 2012-13 only dipped -0.2 per cent but it will return back up to 2 per cent by 2017-18.
“Although online retail is growing substantially, bricks-and-mortar retailers bring certain permanent strengths to the table that can’t be replaced by the online realm. Superior customer service, product interaction, immediate ownership and last minute purchases are all key reasons traditional retail is expected to stick around,” Dobie said..
“There are certain categories, such as luxury, premium and big-ticket items that consumers prefer to purchase through traditional means. These segments will help solidify the role of bricks-and-mortar retail in the coming years.”
At the same time, no doubt online retailers have been thriving from the tech uptake. Flagged as one of the biggest beneficiaries, IBISWorld has forecasted over the coming five years online retail will grow at an annualised rate of 10.8 per cent to reach $18.2 billion.
“Although Australia has been comparatively slow to adapt to the online retail sphere, mainstream acceptance of smartphones and online transactions has pushed growth dramatically over recent years,” Dobie said. “Online shopping has transformed the way that consumers think about researching and purchasing products, and operators that combine savvy online strategies with quality customer care and delivery are thriving as a result.”