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  • Australian Internet Revenues to Reach A$16 Billion by 2002
  • July 7, 1998 (SYDNEY, Australia) -- Australians are increasingly using the Internet as a channel for commerce, with 96 percent of one surveyed group saying that they had purchased goods and services from Web sites located in Australia.
    Market research firm IDC Australia Pty., Ltd. said that total Internet commerce revenues in Australia will grow from A$127.3 million in 1997 to more than A$16 billion in 2002. This report, based on IDC's Internet commerce market model, reveals the average transaction size per buyer per year will grow dramatically, especially in the business-to-business segment, driving total Internet commerce revenues to what IDC calls "astonishing levels."

    IDC projects users buying from the World Wide Web will grow from 12. 6 percent in 1997 to 40.2 percent by year-end 2002.

    "In particular, home Internet spending is expected to increase by more than 300 percent by year-end 2002, as confidence in electronic commerce and secure transactions increases," said Tim Sheedy, market analyst for Internet and networking for IDC Australia.

    "Likewise for the business, government and educational sectors, where individual users who purchase goods and services will increase spending by an average A$7,600 for the same period," he said.

    The report, Internet Commerce and Usage in Australia, 1997-2002, provides a sizing and forecast of the market for Internet commerce in Australia, including the number of users accessing the Internet and World Wide Web, the number of devices accessing the Internet and World Wide Web and the level of transactions per user.

    According to the results from the first Australian NetBuyers Report prepared by Sydney based research company APT Strategies Pty., Ltd. , Australia is the main source of products and services purchased via the Internet, with 96 percent of the 650 Australian NetBuyers recently surveyed having purchased goods and services from Web sites located in Australia.

    According to Marc Phillips, director of APT Strategies, "Australian NetBuyers are showing a preference for known brands and retailers, leading to Australian e-commerce enabled Web sites benefiting from the growth in online sales transactions."

    Some 75 percent of the Australian NetBuyers surveyed are demonstrating confidence in online purchasing with one or more online purchases in the last 12 months, and 42 percent were heavy repeat online consumers having purchased a minimum of five times in the past 12 months.

    Phillips said that 73 percent of these Australian NetBuyers surveyed indicated that they accessed the Internet daily, suggesting a strong correlation between Internet usage and purchasing online.

    Half of the Australian NetBuyers surveyed had also purchased goods and services from US based Web sites. This presents major policy considerations for the Australian federal and state bodies, which are reviewing the regulation of e-commerce with respect to sales tax, income tax and import duties.

    With 60 percent of Australian NetBuyers surveyed earning A$60,000 or more, online shoppers are "cash rich, time poor" and looking for ways to reduce the time spent on the relatively mundane activity of buying.

    The results were compiled from 650 Australians NetBuyers who were surveyed in May, 1998 by APT Strategies, immediately after they had purchased a product from various online merchants including Ticketek, FAI (insurance), Greengrocer.com.au, SOFCOM shopping mall and Travel.com.au.

    (Neil Munro, AsiaBizTech Correspondent)

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    Nikkei BP BizTech, Inc.
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    Updated: Mon Jul 6 16:30:22 1998