Don't believe what you read about the local electronics retailing industry. Many within the sector would have you believe that the industry as a whole is struggling. This is not the case. Rather, the industry is shifting from the old to the new. Eljo.com.au is one example of the many companies who are bucking this supposed downwards trend.
A recent analysis of Eljo's performance data indicates that it’s not all doom and gloom for retailers of consumer electronics and home appliances in Australia. Recent articles in the media have indicated that the sector is experiencing an array of problems, caused partly by questionable consumer confidence ahead of Christmas, Interest rate rises and well as the threat of overseas mega companies entering the local market. But this is not entirely the case.
Yesterday’s comments by eStore CEO, Lorenzo Coppa regarding the many pitfalls of purchasing electronics from overseas are particularly poignant. “Customers can also struggle to attain the customer service and advice they require when dealing with overseas companies.” adds Eljo director Jonathon Green.
Coppa’s belief that consumer behavior is changing is well founded. Australian consumers are becoming more technologically savvy and comfortable buying online. Of particular interest are the changing demographics of today’s online shopper. “Our customer demographic has been trending towards middle class Aussie mums and dads, many of whom are new to shopping online.” Suggests Green.
This, combined with the evident pitfalls of overseas purchases, indicates the problems faced by Australian bricks and mortar retailers may in fact stem from inherent problems with the business model. Aussie websites operate under the same tax system, and with the same exchange rate as any other company in the country, yet the sector continues to grow
Online payments giant PayPal, via their ‘eCommerce: Secure Insight' report from Forrester Research and The Leading Edge, expect the Australian online retail sector is set to reach AU$36.8 billion by 2013, up from a forecasted figure of AU$26.86 billion for calendar year 2010.
"Put simply, our’s is a 21st century business model which saves money on overheads; savings which are then passed onto the consumer” claims Green. At a time when purses are tightening around the country, it’s no wonder consumers are moving more and more towards online purchasing.
And the facts don’t lie. At Eljo, the September Quarter was the company’s best ever, with more than 400% revenue growth compared to the same period last year. “2010 so far, on the whole, has been a tremendous year at Eljo. We’ve experienced around 300% growth already compared with the entirety of 2009. And the Christmas silly season has only just begun!” noted director, Green.
Eljo is a new age retailer and commercial supplier of consumer electronics and home appliance products. Eljo have continued to grow in stature, selling real brand name products at unreal prices, delivered directly to consumers all over Australia.
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