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Grove Market Online and Online Export Marketing: The Basics

The online industry has been in an explosion of growth over the past year and the latest data from market researcher EY reveals the sector is worth $5.5 billion in 2015. 

Aussie e-commerce giant Grove markets online and online export marketing. 

Grove is an Australian e-tailer, and one of the most well known of online retailers, with more than 600 stores worldwide.

The company is also the online hub for the National Farmers Market and the Australian Wine Market. 

The online industry is one of Australia’s fastest growing in terms of growth in the past decade, according to the latest EY online retail survey. 

EY’s research found online retailers generated $1.3 billion in revenue in 2015 and the growth has accelerated in recent years, particularly with the arrival of Amazon Prime Day and its $1 billion per year Amazon Prime membership program. 

In the latest report, Grove’s online sales increased 4.2 per cent year on year, and its online export sales grew 8.5 per cent. 

While the online industry grew $5 billion, it generated less than one per cent of the overall Australian economy in 2015, according the EY report. 

More than a quarter of Grove business was conducted through its online store and the remaining 28 per cent was conducted via the national e-marketing platform. 

Online sales growth slowed down in 2016 due to the economic downturn, but the company still has a significant market to target in 2019. 

“The online market is becoming a major opportunity for Grove to grow and is likely to remain a significant growth driver over the next 12 months,” said EY analyst Andrew Smith. 

Despite the slowdown, Groove has remained a major player in the Australian market, with the company’s online stores accounting for $1 trillion of Australian retail sales in 2015 according to EY’s annual survey.

“We expect Grove will continue to see an explosive growth in revenue, especially after Prime Day,” Smith said. 

If Grove can continue to attract new customers to its online stores, Smith said it could continue to expand the business. 

Grupo is a leading Australian online retailer with over 1,000 stores and online stores in all major states and territories, including the ACT. 

According to the Ey report, Grupo had a total of $3.2 billion in online sales in the 12 months to December 2016. 

Its online exports generated $2.3 million in revenue for the 12-month period, up 9 per cent from the previous year. 

Another Australian ecommerce firm, Shopify, is another online retail player with $3 billion worth of sales in Australia in 2015 as well as over $1bn of sales across the globe. 

It has been growing its online sales since the start of 2017, but Smith said the growth in its sales has slowed. 

Shopify also had its busiest 12-months in its history, with online sales up more than 6 per cent compared to last year.

“Our data shows that online retailers are experiencing a lot of disruption and competition in 2017.

We think that the Australian online market will continue its growth in 2018, but with the downturn in the market it is not as important as it was in 2017,” Smith told ABC News Breakfast. 

Retailer data firm KantarWorldpanelData has forecast the Australian eCommerce market will grow at 8.7 per cent annually in 2019 and up to 7.6 per cent by 2027. 

Australian ecommerce giant Amazon has a strong presence in the retailing sector, with an estimated $1,200 billion in annual online sales. 

Australia has the third-largest online sales market in the world, after the US and the UK, and Amazon is the fastest growing online seller in the country. 

However, the Australian economy is slowing down and there is a lot more uncertainty around the future of the economy, including unemployment, Smith added. 

Smith said online retailers would have to be prepared to adapt to this environment.

“The challenge for retailers is to become more agile, more adaptable and more responsive to changing business conditions and consumer preferences,” he said.

“If you’re a business that is doing something that is fundamentally different to what you’ve done before, you have to think about how to change to survive.”

For Grove, that would be selling more online and it would be a natural progression for them to move into that space.

“But there’s no easy answer, you just have to adapt.” 

E-commerce giants Grove and Shopify are the biggest players in the online business.

Both companies operate through their own online store platforms, and both are actively looking to scale up and offer better value for money in the coming years. 

Both companies are looking to open up new stores, including new grocery stores, convenience stores and restaurants. 

Although Grove has more than a dozen stores in Australia, it has