100 YEARS AGO, IF YOU WANTED TO WIN THE HEARTS OF YOUR CUSTOMERS ; you knew their name, a bit about their family and circumstances, and you remembered their preferred purchase items. You made sure it was a quick and easy process when they came into your store, or you quickly organised a way of delivering their items….
Today, eCommerce in Australia is a juggernaut. Australia Post data revealed that around 9.8 million Australian households spent more than $69 billion online in 2024, a 12 per cent increase compared to 2023. We are highly accustomed to online shopping, and the next generation of buyers is definitely digital. What does this mean for Australian retailers? International giants are already challenging Australian brands, and a downturn in trading performance has pointed to the need to focus on customer expectations.
Whilst eCommerce has grown, the growth isn’t distributed evenly. 25 per cent of retailers saw significant growth, but 38 per cent grew by less than 10 per cent; some of those even recorded negative growth. Only 2.5 per cent of retailers believe their maturity is on par with global leaders.
Internet-savvy shoppers value choice. In 2024, millennials, now all of workforce age, spent $24.9 billion online, according to an Australia Post report. Gen Z, whilst early in their careers or even yet to join the workforce, are already having a massive impact, with an online spend of $11.9 billion, rivalling close to that of boomers and already nearly half that of millennials. Right behind them, Gen Alpha will also further accelerate eCommerce adoption.
Australian brands need to stop looking at yesterday’s revenue in eCommerce and get serious about eCommerce being central to their business to drive performance.
This means investing in personalisation, accelerating the build of a 360-degree view of the customer, and delivering connected and valuable omnichannel experiences. It also means streamlining processes for users, such as ensuring a fast and responsive shopping experience, making the checkout process quick and easy, and providing good shipping options.
REALLY… NOT SO DIFFERENT from what CUSTOMERS WANTED IN 1925.. ??
Carol Fisher Marketing | 0417783862 | carol@solidbluemarketing.com.au |www.carolmarketing.com.au #ecommerce #custmerneeds #GenY #marketing
| Generation Y | 1981 to 1996. | Strong desire for work-life balance, social responsibility, and a sense of purpose in their work |
| Generation Z | 1997 to 2012 | “Digital natives” due to familiarity with the internet, mobile devices, and social media from a young age. |
| Generation Alpha and | 2010 to 2025 | born in the 21st century digital fluency and early exposure to technology. |