5.28B reasons it will be a Merry Christmas online

Sep 14, 2021    |     eCommerce, News, Retail

Research recently conducted by the Australian Retailers Association in conjunction with Roy Morgan shows Australians are set to spend a staggering $5.28B buying Christmas presents online this year (2021).

There’s no question that the events of the last 18 months have changed consumer behaviour driving them online to shop in record-breaking fashion. But as we enter arguably the most important time on the retail calendar and with much of the Australian population still in lockdown, how will Aussies find and purchase gifts for Christmas? The research highlights that of the projected $11B set to be spent on Christmas presents this year, 48% of which will be spent online ($5.28B).

Countdown to Christmas – ARA-Roy Morgan Snap SMS survey.

Roy Morgan CEO Michele Levine says that despite the current lockdowns of over half of the Australian population, consumers are optimistically looking forward to a great Christmas retailing season.

This special ARA-Roy Morgan Snap SMS survey of over 3,000 Australians shows there is considerable optimism in the community looking forward to a Christmas retailing season that is set to see a record amount spent online,” Ms Levine said.

ARA CEO Paul Zahra shared just how critical the Christmas trading period is when most discretionary retailers make up to two-thirds of their profits for the year.

Not surprisingly, a significant amount of Christmas shopping is set to be done online this year which is an accelerating trend as a result of the pandemic. Consumers should be mindful of the strain our supply chains are under and make sure they get their online orders in on time to avoid disappointment. We might be in September, but we’re already seeing Christmas levels of demand with current online purchases.

With less than 15 weeks to go, the countdown is now on to the busiest time of year on the retail calendar, and with over $11 billion set to be spent on gifts this year, retailers look set to share in the Christmas spoils.

Over half of the surveyed Australians (55%) have already made up their mind about what they’ll be gifting this Christmas. Unsurprisingly, toys, jigsaw puzzles and board games were mentioned by 20% of Australians who know what presents they’re going to buy, closely followed by vouchers and gift cards (18%) and clothing, shoes and sleepwear (16%).

We all understand what is driving Australian consumers to purchase online however brands & retailers could be limiting their success this Christmas due to one simple fact, where Australians spend their hard-earned dollars online.

Australians typically spend just under 50% of their online retail wallet-share on Marketplaces. So brands and retailers that have no presence on Marketplaces like eBay, Amazon & Catch.com.au are potentially losing out on a $2.5B opportunity this Christmas.

There are over 15 eCommerce events between now and the end of the calendar year providing brands, retailers and manufacturers ample opportunity to capitalise on what is set to be a recording-breaking Christmas.

Tyler Jarratt
Head of Partnerships
Enrich Trading Group

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