Melbourne, Australia (PRWEB) August 12, 2014
Operators in the Online Perfume and Cosmetic Sales industry in Australia have undergone blemish-free growth over the past five years, primarily due to the increasing uptake of online shopping throughout Australia's population. According to IBISWorld industry analyst David Whytcross, “Consumers are becoming more adept and comfortable with online shopping, as the internet increasingly becomes a customary means of purchasing products.” Perfume and cosmetics are well suited to the explosion of online shopping as they are pre-packaged goods, and consumers know what they will be getting when they purchase them. Industry revenue is thus forecast to rise by a compound annual 17.1% over the five years through 2014-15, to reach $259.0 million. As online shopping continues to tap more market demographics, its uptake is beginning to plateau, which is forecast to result in more subdued growth, at 9.2%, over 2014-15. Market share concentration in the industry is low.
Strong growth in online shopping has driven many bricks-and-mortar operators to establish an online presence over the past five years, with the entrance of Priceline, Myer and David Jones boosting industry revenue. Industry operators have benefited from strong economic conditions over the past five years, as positive consumer sentiment and rising discretionary incomes have pushed consumers to “upgrade to higher-end products when shopping online for perfume and cosmetics,” says Whytcross. While many female demographics were already industry consumers, an increasing number of young, image-conscious males purchasing cosmetic products has provided further growth for the industry.
The Online Perfume and Cosmetic Sales industry is expected to continue growing over the next five years, albeit at a less rapid pace than the previous five years due to the slowing uptake of online shopping. Over the next five years, industry operators will be able to market to older female demographics, as they are high users of perfume and cosmetics and are less likely to already be shopping online, in addition to the burgeoning image-conscious male demographics. More bricks-and-mortar outlets are projected to establish an online retail presence, providing further stimulus to industry revenue growth.
For more information, visit IBISWorld’s Online Perfume and Cosmetic Sales industry in Australia report page.
Retailers in this industry sell perfume and cosmetic products. Industry participants are either online-only retailers or bricks-and-mortar stores that have online operations. The industry includes online sales generated by department stores and other non-specialist retailers.
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IBISWorld Industry Report Key Topics
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.