Christmas is fast approaching again and in addition to the standard time constraints, consumer indecision and the need for convenience, Australians this year have upped their anti with their online shopping, due to Covid-19.
Australia Post recently reported a 72.9 per cent growth in online shopping purchases made in October when compared year on year ―figures which already match that of 2019’s Christmas peak. New households also continue to join the digital shopping revolution in droves with over one million new households shopping online between March and October.
So what opportunities does this bring for companies that have digitised physical consumer goods, making the purchase just one click away without having to move an inch?
Consumer penchant for online shopping is showing no signs of slowing. The expectation is that the rapid adoption of gift cards, and in particular digital gift cards, is also here to stay.
The trend of online shopping, coupled with the benefits of digital gifting and exchange have industry experts forecast that the gift card market in Australia will increase from $5,845 million in 2019 (reported as US$ 4,174.1 million) to reach an estimated $9,394 million by 2024 (US$ 6,698.6 million).
For digital subscription service Readly this trend was expected. The Swedish company has a successful business model based on this consumer desire to both purchase and consume content digitally. The global company launched in Australia earlier this year and allows Australian users access to almost 5,000 titles of magazines on their platform.
Capitalising on the trend of digital gifting therefore seemed the only next natural step to take―the service has made digital gift cards for subscriptions available to complement their already 100 per cent digital offering. And during this year the interest for digital magazine reading has gone up as a result of lockdowns and increased consumer need to stay updated with the news reporting.
Beyond convenience for the purchaser, the idea of digital gifting implies a level of thought in regards to the usefulness and appropriateness for the receiver, with flexibility as to its redemption.
“In unprecedented times like these, the practicalities for both those who purchase and receive digitally highlight a key driver in their exchange―there is no need to navigate shopping complexes or in the case of digital cards, pay for shipping,” Chris Couchman, head of content for Readly in Australia says.
“The transaction is instantaneous, which feeds to our consumerist nature.”
As we head towards a Christmas where face to face interaction amongst families may also be reduced, the perceived necessity of physical gift exchange is muted; the sheer convenience of digital gift giving now supersedes the need to ‘not arrive empty handed’. Beyond this, as shipping deadlines and cut offs begin to loom, Australian shoppers tend to become sceptical of providers capacity and this is often the facet which seals the digital deal as the Christmas countdown continues.
“The pandemic and subsequent lockdowns have meant that online platforms are now seen by many to be a necessity rather than a convenience. It has shaped the way we shop and recreate,” states Couchman.
Readly uses analytics and subscriber search trends to continue to develop their offering―matching and mirroring consumer wants and demands. Whilst obviously keen to analyse the data post-Christmas, Couchman says when it comes to the trend of digital gifting, is unlikely to fall out of fashion anytime soon.
“We believe in a future where instant access to quality journalism from all around the world will become more and more valued among people and that digitalisation is not only driven by platforms like us, but by the consumer demand getting stronger and stronger.”
