Right on cue (after the last post graphically showing the lack of a non-Trade Me eCommerce industry) comes a quote from the head of eBay Australia lamenting the same issue in Australia:
“Major Australian retailers are falling behind their counterparts in other markets in the area of using the internet to boost sales. Simon Smith, eBay Australia’s MD, said the country’s largest retail operators had failed to embrace the internet the way comparable companies in the US and UK had, saying “I think they feel protected by the fact that 70% of Australians live within half-an-hour of a Westfield and that most Australian retailers tend to be national retailers.”
Same symptom here in New Zealand perhaps, along with the lousy boradband and lack of critical mass for market size.
“According to recent research from research firm Forrester, Internet sales represented only 9% of all non-grocery retail spending in Australia in 2006.
That’s a huge number – equivalent to NZ$3 to $4.7 billion in New Zealand terms (depending upon whether you call Motor vehicle retailing “retail spending” or not). Even given that AirNZ will do $1bn of spend, we would fall well short of those numbers.
eBay now claims five million Australian members from a worldwide base of 220 million users.”
While Trade Me has 1.66m active members, or about 40.5% of the NZ population – versus under 24% for the eBay Australia equivalent.