Retail / news
Australian retailers face rising competition from ultra-low-cost online marketplaces
A Deloitte survey found 79% of Australian retailers are concerned about online marketplace competition, with 61% expecting it to increase, up from 28% a year earlier. Nearly half of consumers often or always consider ultra-low-cost platforms.
The findings come from a survey of 1,000 consumers and 150 retail executives. It found that 48% of consumers often or always consider ultra-low-cost online marketplaces when shopping online, while another 28% weigh them at least some of the time.
Higher-income shoppers are also using the platforms: two-thirds of consumers earning $200,000 or more often or always consider ultra-low-cost marketplaces.
Damien Cork, a consumer products and retail partner at Deloitte, said the platforms are reshaping shopper expectations because price, range and convenience can be compared within seconds.
Retailer sentiment reflects the shift. Some 61% of Australian retailers expect marketplace competition to increase, up from 28% last year, while 79% say they are concerned about the competition.
The results raise the question of whether local businesses can compete without relying on discounts, as shoppers increasingly compare prices and products online.