Combatting the threat of international retailers

Australian businesses are continuing to embrace the online sphere. Even companies such as David Jones are now expanding their online offerings to mitigate the risk posed by international entrants into the Australian market.

The NAB Online Sales Index provides insight into retail online spending in Australia. It revealed that while local online sales rose by 25% last year, international sales increased by 40%. Some of these sales were for international online retailers such as ASOS and StyleTread.

With Experian Hitwise you can keep an eye on competitors entering the marketplace that you haven’t even heard of. TheIconic is a great example of an international site that has grown in recent months, jumping from 199th in November 2011 to 12th last month. The majority of their increased traffic has come from Social Networking and Search Engine sites.

The Search terms driving users to these websites can be insightful in terms of identifying the products that are key to their attraction strategies.

For example, while branded terms (eg ‘theIconic’) are part of TheIconic’s Search Terms, there is an extensive list of product-based Searches such as ‘doc martens’, ‘shoes online’ and ‘lipstick shoes’. This should be of interest to anyone selling shoes online. It’s also worth noting the Paid Rates for these terms.

International entrants will continue pose a threat to many markets. As a player in the online space, it’s important to monitor these threats and ensure you’re positioning yourself to effectively mitigate the risks associated with these entrants.