It is no surprise that the internet is now a part of every day life in and outside of business. What began as simple websites and directories has evolved with cheetah like pace to an essential service. But is this really only the tip of the iceberg..?
Deloitte Australian and Access Economics explore the growing impact of the internet on the Australian economy in their September 2011 report The Connected Continent. Although the report seems to have been commissioned and funded by Google, the overarching themes seem well worth taking note of.
Its getting bigger…
The report attempts to quantify the direct contribution of the internet to the Australian economy. The result is an astounding $50 billion (with a ‘B’). That puts it roughly on the same contribution level as Retail and Education and Training. Both of which are at $53 billion. However by 2016 the contribution of the internet to the Australian economy is set to expand to 70 billion.
There is still plenty of room to grow
The report illustrates that internet usages between 2007 and 2010 has doubled in Australia. With further advancements in technology infrastructure rapidly rolling out (i.e. NBN and smartphones), it is only natural that software continues to evolve to further impact traditional retail models. Already Tissot customers can utilise augmented reality to see and feel how a watch fits them. Technology may expand to the point where it threatens traditional brick and mortar boutiques. How the client service of a boutique would be delivered digitally is yet to be answered?
Australia is warming to e-commerce
Analysis of online shopping in Australia imply that this purchase method will grow at 11.2% annually to 2016. That is roughly three times fasted than total economic growth. What does this imply? Convergence of consumption. Increasingly technology evolution will have people shopping away from ‘traditional’ retail in favour of online options. The key to physical retail success will come through an offering beyond price. An experience that no technology can supplant. Finding what exactly that is for a fashion label will be key.
For those with a fetish for charts and all things economics, the full report can be downloaded through Deloitte Australia.