“ Hey Grandad, tell me about the old days when people went to actual bricks and mortar stores to buy things? ”
Don’t laugh – you could be faced with this very question in a few years’ time by the relentless wave of young online shoppers.
This generation has been glued to an iPad for most of its life, and will be soon starting families and require everything from kitchen appliances to baby needs.
And you can bet they won’t be wasting their Saturday mornings trudging around far flung suburban shopping malls…
Yes, going to a physical store still happens in 2014, but it’s starting to look increasingly like a relic of the past.
We are more interested in the future – Online retail spending in Australia just passed $15 billion.
$15BN – all of it spent with the click on a computer mouse or a tap on a smart phone or tablet – and that $15BN represents just under 7% of Australia’s total retail sales.
A good result – but nowhere near the level of e-commerce in the USA, Europe and Asia.
There are predictions online sales could be worth $370BN in the States by 2017 and rise to $212BN throughout Europe by the end of 2014.
In Asia, e-commerce is worth much more – $525BN – and rising…
Just a few hundred kilometres down under, Australians have been a little slow in adapting to the idea of e-commerce.
But that’s changing rapidly – the push through the $15BN mark is a sign that Aussies young and old are embracing e-commerce more and more – and the markets and big name retailers are taking notice…
E-commerce is now the hot spot for retail growth in Australia.
IBISWorld’s annual report on the sector shows online sales growing at 24.1% between 2009 and 2014.
It’s certainly possible that E-commerce’s 7% of all sales in Australia could one day be 70% of all sales…
Right now scores of conventional retailers are trying to position themselves to ride the rising wave of Aussie e-commerce spending, setting up websites for their inventory and digital pay walls.
Good for them.
But The Next Tech Stock has been alerted to an ASX listed company that’s got its sights set a lot higher.
We think the time has come for Australia’s online shopping sector to go from the margin to the majority.
However – at the same time, this stock is a speculative tech company – and there is no guarantee of success here, so investors should consider an investment with the appropriate amount of caution.