The online women’s clothing sales industry in Australia has thrived over the past five years, despite a subdued retail environment that has plagued traditional bricks and mortar stores. Online retailers have benefited from a substantial shift in the way consumers are conducting transactions.

According to research from IbisWorld, over the five years through 2013-14, industry revenue is expected to grow by an annualised 22.8 per cent to reach $597.4 million.

The relative convenience and ease of shopping online from home or at work has also contributed to the surge in demand, particularly from time poor consumers. This trend in consumer behaviour is expected to continue, contributing to an 11.8 per cent increase in revenue in 2013-14.

The category has a low level of concentration, with significant operators including Premier Investments, Myer, David Jones, and Specialty Fashion Group.

As online retailing becomes more normalised, it is expected that revenue growth will slow marginally. The industry’s potential customer base is expected to expand substantially as Australia’s ageing population becomes more tech savvy. Growth in online shopping through smartphones and tablets will provide existing retailers with the opportunity to reach a wider audience.

An increasing number of traditional retailers are expected to set up online operations to complement their existing sales in response to strong consumer demand, however, competition from bricks and mortar clothing retailers is expected to intensify, as these operators invest in delivering a higher level of service, and improving overall customer experience.

IbisWorld industry analyst, Lauren Magner, says “global economic uncertainty and instability in financial markets has led to many consumers seeking greater choice and value, particularly as consumer sentiment and discretionary spending declined”.

“The unparalleled and diverse range of products offered through the online retail space combined with highly competitive prices has provided consumers with greater choice, flexibility and convenience, without geographical boundaries.

“Rapid growth in internet and broadband penetration, combined with greater technological literacy and improvements to security and payment systems, has encouraged many consumers to shop online,” Magner said.

For more information, visit IbisWorld’s Online Women’s Clothing Sales in Australia industry report.