Zara Drops a Major Bomb

In a succinct note to Australian shoppers, fashion chain Zara unveiled its plans to launch its Australian e-commerce platform on 14th March, seven years following its arrival here.

Online fashion marketplace, The Iconic, currently holds the top spot in Australia for online fashion retail, however, Zara’s big decision could cause a ripple effect to Australia’s cross-border e-commerce players.

The Spanish retail giant joins the likes of international players including Uniqlo, Victoria’s Secret, Debenhams and soon to be launched H&M who are taking advantage of the massive potential of Australia’s e-commerce market.

Following the launch of Amazon in Australia in December 2017, Zara’s new online store will create more competition in our under-serviced market. Until this month, Australian customers who were unable to get to a Zara store, were redirected to its US or European e-commerce platforms to purchase online.

Zara’s launch of an Australian online store could spur more international competition locally and entice more global players to join suit and ship to Australian consumers, given that cross-border e-commerce growth in Australia is set to boom in the coming years.

Last year, Australians spent an estimated $24 billion on online retail over a 12 month period to November 2017, with 14.4 % growth, according to the latest NAB Online Retail Sales Index – highlighting we are a lucrative market and a strong prospect for more overseas entrants.

“There is a great deal of opportunity here (Australia) because we have seen the disruption that has taken place that has lowered barriers to entry for retailers both inbound and outbound in markets across the country,” National Retail Federation’s CEO Matthew Shay told Power Retail in a recent interview in Melbourne.

“You have a young and mobile and educated workforce and there is a philosophical cultural commitment to technology and a risk-taking mindset – these are ingredients that set the stage properly for taking advantage of what’s happening in the industry at the moment.”

It has been reported that Zara takes on average one week to get a new product onto its shelves, with the industry average being six months. It sells around 12,000 new items per year and maintains a zero-advertising policy, choosing rather to invest funds into its store. has over 150 million website visits every year, according to the retailer, and a brand value of $11.3 billion USD.

The official launch of Zara’s Australian online store will take place at the Sydney Opera House on 13th March, with customers able to purchase on the platform on 14th March.

Australia, the competition is only going to get stronger!

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