Australian retail mark-ups drop as markets broaden with internet shopping
AUSTRALIAN shoppers spending up on overseas sites are bringing down the price of goods in Australia.
High mark-ups on brands have long been the bugbear of shoppers who travel overseas to find products far cheaper than they are available here, the Courier-Mail reported.
But with spending by Australians on overseas sites increasing, some international brands are now dropping their Australian prices to protect domestic sales.
Cosmetics giant L’Oreal recently reduced the entire range of its Kiehl’s brand by up to 50 per cent, Canon dropped prices by up to 20 per cent across its range, Apple is gradually reducing prices and accessories retailer Fossil has slowly brought Australian watch prices closer to parity with US prices.
Paypal Australia spokesman Adrian Christie said: "Now the consumer has access to the global shopping mall, retailers have to consider the options that customers now have at their disposal".
A Canon spokeswoman said the price drops were likely to continue. "The Australian market is highly competitive and in response we’ve seen popular products such as the EOS 550D Super Kit drop $500 in August and a further $200 in October," she said.
Brisbane online retailer Tim Neilsen kept a keen eye on international prices when he started up in January this year.
Stocking a range of swimwear to rival UK-based online sportswear giant Wiggle, mr Neilsen’s Swimwearshack also opened a store at Woolloongabba last Saturday.
"We’re trying to be as internationally competitive by keeping prices as low as possible and we’ve been working with brands that can support us in doing that," he said.
"We’ve been working with brands like Speedo in securing discontinued lines and then discounting them heavily, which is what Wiggle does."
Mr Christie said international experience showed that an online-only presence was no longer enough.
He said consumers wanted a range of options, such as buying in store and returning online, and vice versa.
Australian retailers, in particular fashion stores such as Country Road, Witchery and Saba, are starting to keep up with overseas trends, with the launch of fashion brands online accounting for a recorded growth of 20 per cent for online sales this year.
Retailers such as JB HiFi, Big W and Toys R us were highly competitive online and with Westfield’s online site now also performing well, big retailers such as Myer and David Jones will soon start to capitalise on the online opportunities.
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