Australia's festive season online spend to reach $10.7 billion
Australia's festive season online spending habit is strongly tracking the US and the UK and sales are expected to surge to $10.7 billion this year. The starter's gun for the final two weeks of last minute e-commerce shopping will go off on 13 December, says Adobe's Digital Insights 2016 Holiday Shopping Predictions. The report expects Australian and New Zealand shoppers to fork out $236 million online on that day alone this year - a 60 per cent increase "on a typical day's spending for the Christmas period".
The surge is partly due to increased confidence in using smartphones for online purchases. Nearly 65 per cent of Australians surveyed said that they think that retailers have stepped up to the plate to create a better online experience with smartphones and tablets. While 41 per cent of Aussies claim they have become more comfortable with security and privacy using both devices. Adobe estimates that 25 per cent of all online Christmas revenues will come from smartphones and tablets this year.
A landmark finding of the report reveals that social media's influence on purchasing decisions has shown a spectacular 450 per cent increase since 2015. Close to 50 per cent of Australians also believe that mobile apps offer a better experience when searching for gifts than traditional websites.
Employers could be alarmed, though. Australians typically browse through three to four websites before buying something, and much of the scanning is done at work. Just over 11 per cent of Australians say that shopping from work is a key factor in online purchasing.
Retailers and websites looking to attract more buyers should make direct contact, says Adobe. More than one in four - 26 per cent - of Australian online shoppers say that direct emails from retailers and advertising campaigns are the best sources for shopping discounts. Only 15 per cent of consumers say they prefer to get bargain-hunting tips from family and friends.
Local pharmacies brace for Christmas fragrance upsurge
Pharmacy chains such as Chemist Warehouse and Priceline have long dominated celebrity fragrance sales in Australia. But they have also become a major force in top-selling women's and designer fragrances, says Nielsen. The eight weeks leading up to Christmas account for 33 per cent of annual pharmacy fragrance sales, leaving other eventing periods such as Valentine's Day and Mother's Day trailing in its wake.
The fragrance category in pharmacy is cut-throat, says the researcher. Overall, pricing is routinely 33 to 50 per cent lower than the recommended retail price for well-known prestige brands. But even if pharmacies don't engage in deep discounting, the Christmas period sees a huge upsurge in sales. According to Nielsen, more and more pharmacies are engaging in the age-old perfume retailing methods of intensified staff training and an attractive range of brands at good prices.
Into The Gloss founder secures US$24 million in new funding
Emily Weiss, the much-feted entrepreneur and blogger, started intothegloss.com in 2010. The US website dedicated to interviews with celebs, makeup artists and models and product reviews quickly became one of America's go-to beauty websites. In 2014, Weiss created the Glossier brand, a direct-to-consumer range of curated skincare and makeup, securing Series A funding from private equity firms of US$8.4 million.
But bigger things are in the offing with the latest Series B funding agreement totalling US$24 million. The cash injection will springboard Glossier into a global brand, says Weiss. Most of the money will be spent on new technology to launch a wider range of beauty products and open bricks-and-mortar stores. According to Forbes magazine, the Glossier deal is - "one of the largest rounds of funding by a woman-led startup in recent years".
Gen Z boosts Australian athleisure sales to $1.5 billion
Globally, activewear has become more of a fashion choice. Not in Australia, says Roy Morgan Research. More than 75 per cent of Australian athleisure wear buyers play sport or engage in some form of formal exercise in an average three month period. The reason why there are more lycra-clad patrons sipping chai lattes in cafes is that sportswear buyers are keen to show off the results of their efforts. According to the researcher, the athleisure crowd are 17 per cent more likely than the average Australian to head to cafes for apres-workout refreshment.
A hefty 1.6 million Australians (8.1 % of the population) buy men's or women's sportswear in an average four week period, says Roy Morgan - up from 1.3 million four years ago. Gen Xers account for the largest market share - 31.6 per cent of dollars spent - a drop from 35.9 per cent five years ago. In that timeframe, Gen Z's share has doubled from 14.2 to 26.4 per cent. Baby Boomers have also increased their spend from 17.9 to 18.6 per cent since 2011.
Influenced by brands like Lorna Jane, Lululemon and Nike, Gen Z now accounts for significantly more athleisure dollars as they have grown older, says Norman Morris, industry communications director, Roy Morgan Research. "The average four-weekly expenditure by a Gen Z sportswear buyer is $76, second only to Generation X ($80). They are also much more likely than older generations to agree with key statements such as "I wear clothes that will get me noticed"and "It's important to look fashionable", which goes some way to explaining why athleisure wear is such a hit with them".
Snippets from the wires
- Many prestige fashion brands sell more makeup and fragrances than clothes, so it's important to stay ahead of the competition across all product categories. L2, the US-based think-tank, has released its latest Digital IQ Index: Fashion. Gucci tops the list for the strongest social media performance, followed by Burberry, Ralph Lauren, Michael Kors, Louis Vuitton, Coach, Tory Burch and Kate Spade.
- Luxury fragrances are proving a bright spot in US holiday sales, reports WWD. Bloomingdales reported "disproportionate growth” in brands such as Creed, Bond No 9 and Jo Malone. Sephora's major successes to date are: Tom Ford Black Orchid, YSL Mon Paris and Black Opium, Chanel No 5 L'Eau and Miss Dior.
- Many fragrances rely on advanced technologies and synthetic essences for their appeal, and that's a good thing for the environment. But the natural fragrance ingredient market is growing fast, says Transparency Market Research, and is expected to reach US$5.3 billion in 2024.
- Napoleon Perdis has long promoted the makeup mantra - Not To Prime Is A Crime. The message has been taken to heart in the US, reports Mintel. According to the researcher, 16 per cent of American women regularly use a primer before applying their base makeup.
Image: Forbes
