Online footwear retailers will attempt to boost sales by developing mobile-optimised websites for smartphones and tablets.
Melbourne, Australia (PRWEB) July 04, 2014
Online Shoe Sales in Australia have flourished over the past five years, despite difficult retail conditions that have plagued traditional bricks-and-mortar stores. According to IBISWorld industry analyst Lauren Magner, “Online footwear stores have benefited from consumers seeking choice and value when it comes to discretionary purchases.” Consumer sentiment plummeted following the global financial crisis and ensuing instability in financial markets prompted many households to scale back expenditure on non-essential items by postponing purchases or opting for cheaper alternatives. The online retail space offers an unparalleled and diverse range of shoes at competitive prices, providing consumers with greater choice, flexibility and convenience, without geographical boundaries. Industry revenue is forecast to grow by an annualised 17.4% over the five years through 2014-15, to reach $445.4 million.
Although consumers have been typically hesitant to purchase footwear online, due to the difficulty of determining size and fit, this has changed as an increasing number of industry players have started to offer free shipping and free returns. As consumers take advantage of the convenience of shopping from home, revenue is expected to grow by 11.3% in 2014-15. The industry is expected to grow strongly over the next five years, but at a slower pace than the previous period. The rollout of the National Broadband Network is expected to deliver faster and more secure internet connections, particularly to regional areas, expanding the industry's potential client base. “Online footwear retailers will attempt to boost sales by developing mobile-optimised websites for smartphones and tablets, providing consumers with the ability to shop when they want, where they want,” says Magner. The line between bricks-and-mortar stores and online retailers will become increasingly blurred as more hybrid business models, such as Shoes of Prey and Sneakerboy, enter the market.
The Online Shoe Sales industry has a low level of market share concentration. No company has been able to establish a dominant market presence in the industry, as industry players often stock comparable brands and similar products. The larger players such as The Iconic and SurfStitch have sustained considerable growth over the past five years, aided by increased acceptance of online shopping coupled with a focus on customer service levels. Intensifying efforts by traditional retailers such as David Jones and Myer to improve their online presence are projected to increase competition and potentially translate to rising market concentration, if they are able to compete with pure-play retailers that typically have a lower operational cost base.
For more information, visit IBISWorld’s Online Shoe Sales report in Australia industry page.
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IBISWorld Industry Report Key Topics
Retailers in this industry sell footwear online. Industry participants are either online-only retailers or bricks-and-mortar stores that have an online presence. The industry includes online shoe sales generated by department stores and clothing retailers that also sell footwear.
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.