Story image

Online retail giant’s Australia launch shakes local market

01 May 18

Data from online marketing research firm SEMrush shows how the March launch of fashion giant Zara’s new online store in Australia has shaken the local retail market.

Research shows ad spend went through the roof once local retailers recognised the threat from the arrival of Zara online in Australia.

The digital marketing data provider analysed the web traffic for fashion websites visited frequently by Australians and identified a list of eight of Zara’s top competitors, including both local and international brands; The Iconic, David Jones, Asos, Cotton On, Surfstitch, Pretty Little Thing, Showpo, and Missguided.

Organic search traffic to Zara.com from Australia increased by 50% from January to March. However, it was the paid search that was the biggest driver of traffic to Zara’s new Australian online store, which saw an increase from January to March of an incredible 18,900%.

SEMrush head of Global Marketing, Olga Andrienko, says with Zara being present and having an aggressive marketing strategy, change is seen across the whole market.

“Zara's top competitors have all dramatically increased their advertising budgets. Local retailers are now trying to neutralise the effect of Zara's launch here,” Andrienko adds.

Paid Search Traffic (AU users) from January to March 2018

Although it was declared that Zara was planning to open an online store in Australia, the timing was not announced until early March for a mid-month launch.

In an effort to reduce the impact of the international brand’s entry into the online market, some but not all reacted to the competitive intelligence about Zara by increasing their digital marketing spend on search.

SEMrush also identified that local fashion retailer, David Lawrence lost about ten percent of its usual traffic within the same period from January to March.

SEMrush uses over 30 tools to report online marketing data, including website traffic, digital trends and search volumes.

The firm collects search data for 140 countries and provides SEO, PPC and content marketing solutions for in-house marketing teams and agencies.

Why A/NZ organisations need to improve compliance protocols
Only a mere 4% of IT decision makers and data managers surveyed said their organisation faced no data management challenges. 
AWS tops all four global markets, APAC a unique case
The order of proceedings remains relatively the same in three of the four major regions for public cloud services providers, but the APAC market is bolstered by the prominence of China.
How artificial intelligence is transforming finance teams
"Organisations using cognitive ergonomics and system design in new AI projects will achieve long-term success four times more often than others.” 
Pure Storage launches new cloud data services
“Customers should be able to make infrastructure choices based on what’s best for their environment, not constrained by what the technology can do."
Is self-service BI living up to the hype?
the explosion of data available to a business and self-service BI tools is transforming how everyone works - but is self-service living up to expectations?
What the people say - Gartner’s November Customers’ Choices
A roundup of the latest Gartner Peer Insight Customers’ Choices from Backup and Recovery to Business Intelligence and Analytics, and more.
How organisations can use AI to generate business insights
DataRobot’s automated machine learning enhanced Precision Marketing’s predictive modelling capabilities.
WA council first to adopt new Datacom tech for local government
The early adopter Shire of Majinup’s initial priority is to use Datascape to help it engage more closely with its community.