| 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
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
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
(Neil Munro, AsiaBizTech Correspondent)