According to London’s Centre for Economics and Business Research, Australia’s economy will become the world’s 11th biggest economy by 2026, thanks in large part to a growing population of skilled workers needed to keep up with the digital evolution of the world’s economy. Due to this projected growth, we decided to focus this month’s country spotlight on Australia and some of our client industries.
Travel & Hospitality
Over 8.7 million international visitors had arrived in Australia as of October 2017, spending a record $41.2 billion. Two of the areas we are interested in include vacation home rentals and online travel agencies. According to AirBnB’s own data, in 2017, Australia had $77 million in bookings for over 1200 villas, accounting for approximately 20% of the entire Asia Pacific Villa Rental Market. Major areas for these bookings include Sydney, Perth and Byron Bay. According to analyst group IbisWorld, the OTA industry in Australia has “grown phenomenally,” with expected double digit growth annually until 2020 expected, and we’re seeing expansion as well, with Webjet, a Melbourne-based OTA, is expanding into new markets including North America and South Africa.
Australia made the list of billion dollar markets for direct selling in 2015 and 2016 saw a continuation, with annual sales of $1.6 billion (AUD). According to Direct Selling Australia (DSA), approximately 641,000 independent sales people, of which 74% are women, are engaged in selling in Australia. Healthcare, cosmetics and personal care, and household goods account for the majority (82%) of sales in the market. Traditional person-to-person sales methods have come under threat from e-commerce retailers and with more millennials joining the direct selling business, and as a result, it’s noted that digital and social selling can’t be forgotten.
Another area seeing growth thanks to increased digital and internet adoption is the gig economy. Australian labor statistics show a growing workforce, almost 11.5 million workers in 2016, but with a rise in the number of Australians employed part-time, up 14% since 2011. A recent survey of 1,007 casual and contract workers noted that 87% consider work-life balance extremely or very important to them, the biggest driver of satisfaction for those in the gig economy. Those with control over work-life balance, expressed a 90% satisfaction rate compared to those without who only reported a 26% satisfaction rate. Australian workplace experts are beginning to note the need for more regulation in order to protect vulnerable workers and others note concern that workers in these jobs will be left without retirement protection from superannuation payments. Businesses will be smart to pay attention to developments in both of these areas even as the market continues to grow.
Australia’s online marketplace industry seeing big growth and big changes thanks to a number of recent developments. Amazon Marketplaces arrived on the scene in late 2017 to compete with eBay, the oldest and most dominant marketplace, and Catch.com.au, another large player who launched its marketplace in June of 2016. According to research from Neto, an Australian retail management platform, 95% of retailer’s surveyed plan to sell on Amazon in 2018 and 39% said they’d sell in as many marketplaces as possible in 2018. Consumer preferences are driving the need for retailers who want to be competitive to be on these marketplaces as shoppers are turning to online.
The Transpay Edge
Staying competitive in these growing markets requires a successful payout program. Transpay offers businesses the simplest way to pay, marketplace and direct sellers, gig economy workers and travel hosts and suppliers. We offer quick and cost effective payouts, in Australian Dollars (AUD) directly to local bank accounts in 48 hours. Let Transpay ensure your payees get paid how they want to be paid!
Start Making Payouts to Australia Now
[Photo By: Adam Krowitz, Unsplash]