Online businesses need to ‘work harder’: Aussies pick adventure over retail
Many Aussies have been tightening their purse strings as they feel the pinch of the cost of living crisis, but new data reveals there's still somethings we are prepared to splurge on.
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Online businesses will need to “work harder” to survive as Aussies tighten the purse strings on retail and e-commerce, choosing instead to spend on travel and education.
New research from Airwallex has found travel and education sectors experienced the biggest increases in business turnover, growing 96 and 208 per cent respectively in the past 12 months.
While these are massive figures, they actually represent a return to pre-Covid levels in both industries.
In contrast, both domestic and international retail and e-commerce dipped 12 per cent over the past year.
Airwallex director of strategy for ANZ Amelia Hamer said while online businesses were “holding more strongly” than other economic sectors, the new data reveals “they aren’t immune” from global economic headwinds.
“Consumers are still drawn to spend with digital brands, but their reliance on them has waned post-lockdowns,” she said.
“Australian online businesses need to work harder to find opportunities to grow their income and revenue.”
Across the country Queensland-based online businesses enjoyed turnover growth of 6.14 per cent, largely credited to increased engagement with local online travel businesses.
Digital businesses in New South Wales experienced the biggest increase in demand with turnover growth of 12.94 per cent, the state’s strong growth across online sectors contrasting with a national decline in spending.
Both Victoria and Western Australia suffered significant drops in turnover, with Victoria’s 25.5 per cent decrease seemingly driven by a shift in education spending.
“The figures indicate the post-Covid economic recovery is patchy, in full swing across some areas while South Australia and WA, as well as Victoria, continue to struggle,” Ms Hamer said.
Digital and technology industries enjoyed 17.41 per cent growth in their annual turnover, while finance and insurance grew 10.30 per cent.
Despite Australia’s flat spending with online businesses, Ms Hamer said they were holding up against unfavourable economic conditions.
Originally published as Online businesses need to ‘work harder’: Aussies pick adventure over retail
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