Australia’s E-Com Luxury Goods Spend Doubled

By Rory Betteridge | 25 Sep 2015

The last two years have seen Australia’s online shoppers double down on luxury items, with the average luxury basket value online jumping from $190 in 2013 to $420 today.

The spending rise on luxury goods, documented in affiliate trends data produced by Rakuten Marketing, is one of the more interesting shifts in the e-commerce arena, and reinforces a McKinsey report that claims e-commerce will account for up to 18 percent of luxury sales by 2025. Online retailers of luxury brands and products, therefore, should be ready to ride the wave with intuitive and seamless online and mobile shopping experiences.

“The huge increase in the amount shoppers are spending on luxury items shows that people are now more confident about purchasing expensive items online,” Rakuten Marketing Managing Director Anthony Capano commented. “The technology used to bring products and brands to life online is now highly sophisticated. You can now watch videos, use outfit builders, and really get a feel for the items. It’s an exciting way to shop.”

“Our shoppers love to find and buy the latest luxury items online, in particular shoes, handbags and dresses,” said Laura Yeomans, Country Manager at ShopStyle.com.au. “Through the affiliate data and advice our marketing partner provides, we can ensure that we connect world leading retailers with the relevant customer audiences in an inspiring, engaging and successful way each time they shop with us.”

The rise in luxury spending matches similar rises across other categories, including furniture, electronics and digital media. This rise in spending over online and mobile channels is a sign of growing confidence in the level of service, security and satisfaction stemming from online retail; people are willing to trust more money to a retailer’s website or mobile app, confident that the goods and services they receive will match those they’d get from a physical store.

“People are clearly more open to purchasing both expensive and inexpensive items on smaller screens. This highlights the important role mobile now plays and how publishers should have a strong focus on mobile across all sectors,” said Capano.

The extra spend is stretched a little further online, as retailers branch out to find new ways of reaching their customers. 80 percent of shoppers went from browser to buyer by using deals aggregators and special offer sites to buy consumer goods and services; 73 percent did the same with footwear. Homewares and small appliance retailers, on the other hand, are getting more mileage out of third-party loyalty and rewards schemes such as FlyBuys and Velocity, with Australian shoppers twice as likely to purchase that new lamp or kettle with a rewards scheme in place than with specials.

Another winner with home- and kitchenware is content marketing and blogger material; Appliances Online is a good example of a retail channel using video content to strong effect.

“Videos are an integral component of our marketing mix,” Appliances Online COO Peter Harris told Power Retail, “and YouTube provides an additional platform to enhance the customer experience. Appliances Online’s in-house video team works alongside suppliers to create original and engaging content that improves the shopping experience for our customers.”

All in all, luxury goods and other high-value product retailers in Australia are doing more than ever to reach out to shoppers, and it’s paying off in a big way.

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