Being geographically distanced from much of the world’s major centres, Australians rely heavily on online shopping to supply them with the latest “stuff.”
But the retail landscape is about to shift — for better or worse. Worse, if you’re a regular retailer, says the chief of a funds management firm.
From September 2017, Amazon is launching proper in Australia. The U.S. shopping giant will be dropping anchor, offering general products and fresh groceries from a specifically-made Australian platform.
And together with distribution and performance centres in every Australian state, it’ll also have brick-and-mortar stores in regional areas, reports the Australian Financial Review.
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Chief investment officer at Watermark Funds Management, Justin Braitling told the Financial Review that he was given a special briefing by an Amazon staff member who he wouldn’t name.
“[Amazon] will be doing general merchandise and they will be doing fresh as well. They will also be putting physical stores on the ground which I don’t think anyone knows about.”
The move shows a significant amount of confidence, but having already successfully set up operations in 10 regions outside the U.S., it seems the company is willing and able to change the way Australians shop.
Brawling told the publication Amazon was planning to launch in March 2017, but pulled back the date by six months to allow for a greater offering at launch. “They were originally launching in the first quarter of next year,” he said.
“They have decided they want to do fresh at the same time as the general merchandising offer so that has put them back six months. They want to roll the whole thing out at the same time.”
With that in mind, the company is planning to set price points 30 percent lower than Australian competitors, he said. Bargains for all!
According to Watermark’s research, e-commerce will account for 20 percent of all U.S. sales in 10 years time.
Their data also suggests that Amazon will account for 10 per cent of all U.S. retail sales by that point. Time will tell how an extensive launch Down Under will effect the Australian market.