The proliferation of online shopping has spurred industry demand, with online purchases seen as a cost effective and convenient alternative to bricks-and-mortar shopping.
Melbourne, Australia (PRWEB) September 14, 2013
Over the five years through 2013-14, the Online Computer and Tablet Sales industry in Australia has grown in leaps and bounds. Rapid technological change and intense competition in upstream manufacturing industries have made desktop computers, notebooks and tablets more affordable and attractive to consumers than ever before. The proliferation of online shopping has also spurred industry demand, with online purchases of computer products seen as a cost effective and convenient alternative to bricks-and-mortar shopping. According to IBISWorld industry analyst Ryan Lin, “These favourable trends have helped the industry weather the global financial crisis and outperform its bricks-and-mortar counterparts”. Over the five years through 2013-14, the Online Computer and Tablet Sales industry has grown at a phenomenal annualised 27.0% to total $631.3 million. In 2013-14 alone, industry revenue is expected to grow by 26.6% as consumer sentiment increases amid the continual development of mobile technology and infrastructure projects, such as the National Broadband Network.
Despite the rapid leaps in revenue, the industry faces rising levels of competition, especially from larger foreign companies such as Apple and Dell. Industry players have ramped up price competition and product offerings in a bid to stay competitive. As a result, profit levels are expected to decline. “Profit margins are expected to continue falling despite historically low overheads from online retail operations,” says Lin. The Online Computer and Tablet Sales industry is characterised by a low level of market share concentration, with the only major players being sector giants Apple Pty Limited and Dell Australia Pty Limited.
Over the coming five-year period, the industry is expected to grow strongly, albeit at a slower rate. Competition pressures are expected to continue with the industry heavily entrenched in a price war and competition from alternative bricks-and-mortar stores intensifying. Despite the favourable trends, the industry is expected to face regulatory hurdles in coming years, especially as the topic of increasing online sales tax is increasingly debated and pushed by bricks-and-mortar establishments. Smaller establishments in particular are anticipated to face tough operating conditions in the coming years, as they cannot achieve the scale and scope of larger enterprises.
For more information, visit IBISWorld’s Online Computer and Tablet Sales in Australia industry report page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Firms in this industry sell desktop, notebook and tablet computers to consumers via the internet.
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.