Pure Beauty

Amazon: How will the retail giant revolutionise the Australian marketplace?

Published: 9-May-2017

The US e-commerce platform is set to launch down under in September and will be bringing services like Amazon Fresh and Amazon Go to the country

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Petah Marian is the Senior Editor at retail intelligence at trend forecaster WGSN. The Australian native has provided her expertise for both consumer and trade titles.

Here she talks to Cosmetic Business about what Amazon will mean for the Australian cosmetics market and what retailers should prepare for.

Retailers within the retail sector are right to be concerned about Amazon’s entry to the Australian market.

The high prevalence of cross border shopping in Australia means that Amazon is already a big player in Australia, with Morgan Stanley estimating that it took $1bn AUS out of the market last year.

Amazon’s market launch will bring its full arsenal of loyalty driving programmes, things that have led to the online behemoth becoming the starting point for product searches, even above Google (38% and 35% respectively).

To get a sense of Amazon’s potential impact on the beauty sector, you only need to look to how it’s performing in the US.

A market worth $56.2bn in 2015 and growing at 2%, according to e-commerce researcher One Click Retail.

The retailer took $2.5bn in US beauty sales and is growing by 47% on a year-on-year basis.

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