Competitive pricing and convenient shopping platforms have enabled sales volumes to soar.
Melbourne, Australia (PRWEB) February 06, 2013
The Online Baby Product Sales industry has proven to be one of the most successful segments in Australia's retail landscape, effectively defying the downturn in consumer spending since 2007-08. The industry owes its success to rapid advances in technology and increasing internet connectivity, which have fuelled the demand and acceptance of online shopping in Australia. According to IBISWorld industry analyst Suzannah Rowley, “Mainstream retailers only jumped on board in the past few years due to the success of smaller online-only retailers. However, they have rapidly increased their market shares in a very short period of time. This has fuelled price competition and depressed profit margins over the past five years”. The industry has a low, but increasing, level of market share concentration. Large department stores and supermarkets have increased their market share over the past five years as their web interfaces and delivery systems have improved. Pumpkin Patch and Babies “R” Us are two examples of enterprises that have increased market share as they have moved online.
Competitive pricing and convenient shopping platforms have enabled sales volumes to soar, despite the flat retail environment since 2007-08. The Online Baby Product Sales industry's appeal in this respect has come from targeting an increasingly value-conscious customer base with clever marketing and great prices, especially for essential items such as nappies and food. “Equally important has been the ability for consumers to purchase baby products anytime and from many locations given the development of mobile shopping apps,” says Rowley. All of these factors have driven the 22.4% growth in industry revenue over the past five years. The industry is expected to be valued at $314.6 million.
The industry's growth spurt will continue over the next five years. The greater acceptance and need for convenient online shopping platforms will fuel demand as lifestyles become busier and workloads become heavier for many parents. Added to this will be further technological development, greater internet connectivity and further innovation within online shopping platforms. All of this will be underpinned by increases in the national birth rate and female workforce participation. However, the industry's success will encourage larger players to increase their market share, which will inevitably fuel price competition and depress industry profit margins further. This could be offset to some extent with the entrance of niche retailers selling premium baby products.
For more information, visit IBISWorld’s Online Baby Product Sales report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry retails products on the internet designed for infants and toddlers aged from zero to three years of age. Industry products include nappies, clothing, feeding aids, strollers and furniture. Firms purchase products for resale to consumers with no further development of the product.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.