Australian consumers are most likely to target electrical goods, apparel and shoes, and cosmetics from Amazon Australia. It’s one of the observations drawn by UBS as part of the bank’s research into the impact of Amazon’s arrival.
Their findings are summarised in the chart below:
Here’s what the bank had to say about the top three categories, including the relative impact on competitors:
- Electrical/ Appliances: Particularly high-margin accessories which, in our view, make up a large portion of electronic retailers’ gross profits.
- Apparel/ Shoes: While customer returns are an impediment to the category, Amazon has been allocating more capital towards apparel since 2012. Specialty fashion retailers, as well as department stores are most exposed.
- Cosmetics/ Skin: A low value / high-margin category which is particularly valuable for Australian Department stores (~20% sales exposure).
The UBS analysts said the sectors which will be least exposed to Amazon’s arrival are baby products (excluding toys) such as prams, auto parts, and fresh groceries.
This chart shows UBS’ estimates for how much market share by sector Amazon Australia will achieve by June 2023:
[referenced url=”https://www.lifehacker.com.au/2017/11/everything-you-need-to-know-about-amazon-australia/” thumb=”https://www.lifehacker.com.au/wp-content/uploads/sites/4/2017/11/amazeon-410×231.jpg” title=”Everything You Need To Know About Amazon Australia [Updated]” excerpt=”Amazon is less than a day away from launching their online retail service in Australia with a soft launch set for tomorrow afternoon. This means that you will soon be able to buy everything from food to electronics without paying exorbitant international shipping fees. As the launch inches closer, more and more questions are being answered about Amazon’s arrival in the Great Southern Land.
We’ve rounded up everything you need to know.”]
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