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KOTRA published a report on "Australia's E-commerce Market Trend and Entry Plan" on Dec. 20
Global and local marketplace, a foothold for Korean SMEs entering the Australian market

KOTRA (President Yu Jeong-yeol) published a report titled "Australia's E-commerce Market Trend and Entry Plan" on Dec. 20. The report is designed to vividly provide local market trends, shopping trends, promising items, and information on entering the market to domestic companies aspiring to make forays into the Australian market.

With a loosely-populated and large land, Australia's entry into the e-commerce market was relatively slow. However, A long-haul lockdown, which began in 2020, led an exponential growth of the online shopping market. As of 2021, the country's retail market is valued at AUD 323.7 billion, of which the online market amounts to AUD 62.3 billion. The share of e-commerce, which was less than 10 percent back in 2019, almost doubled to 19.3 % over the past three years.

Active e-commerce can take an opportunity of that customers tend to have lower loyalty to existing brands and purchase new brands from new distributors. Also, social commerce has increased, led by Gen Z and Millennials; the proportion of social commerce buyers among Australian internet users in 2021 was recorded at 30.3%, ranking third after China (46.4%) and the United States (35.9%).

In order to comprehensively grasp the Australian e-commerce market and help SMEs establish export strategies, th3 report studies in-depth △ Australia's e-commerce consumption trends △ major online distribution channels and entry procedures, and △ the fields of consumer goods that are promising for Korean products entry. In addition, through interviews with e-commerce experts, the report provides tips on advancing into Australian e-commerce and analyzes △ cases of Korean companies entry and △ precautions for entering and selling marketplaces.

Australia has the highest percentage of 33.9 % in terms of purchasing through marketplaces such as eBay and Amazon. Against this backdrop, KOTRA Melbourne carries out the "Australia's Online Distribution Entry Project" to explore the export path of Korean companies. As of 2022, the agency supports 30 SMEs ((kitchen goods, pet goods, fashion goods, etc.) to enter eBay and Amazon, which are Australia's No.1 and No.2 marketplace, respectively .

Choi Kyu-cheol, head of KOTRA Melbourne, said, "Australia's 2023 economic growth rate is forecasted to be moderately good compared with other advanced countries," adding, "By capitalizing on the popularity of Korean commodities, we would pursue expanding cooperative projects with big e-commerce platforms in Australia."



Source : KOTRA (Dec. 21, 2022)