Goods distribution channels

In Australia, goods are distributed through various retail channels such as hypermarkets, supermarkets, department stores, convenience stores, shopping malls and online shopping channels, etc.

The size of Australia's retail market is expanding. During the period 2014-2023, retail revenue in Australia has grown significantly, increasing from 280.7 billion AUD in 2014 to 425.3 billion AUD in 2023 (Statista.com, 2024).

Australia's food retail industry recorded the largest retail revenue with total food retail revenue reaching AUD 168 billion in 2023 (accounting for nearly 40% of total retail revenue in Australia), followed by the household goods and clothing and footwear industries with total revenue in 2023 reaching AUD 69.54 billion (accounting for about 16%) and AUD 35.6 billion (accounting for about 8.4% of total retail revenue in Australia) respectively (Statista.com, 2024).

Table - Some types of retail distribution in Australia

Source: Global Data, 2023

Currently, Australian consumers tend to shop online more because of its ease and convenience. Therefore, e-commerce is becoming an important tool for businesses in the retail sector to reach Australian customers.

According to statistics from Statista.com in 2023, household goods are the most purchased product group by Australians directly, accounting for about 19.6% of total online spending in Australia, followed by groceries at 16.9%.

Amazon is the largest e-commerce platform in Australia, followed by other online shopping platforms such as Kmart, eBay, etc.

Import channels

Foreign goods can access the Australian market through a variety of channels depending on the product, financial considerations and other factors such as market size, demand and long-term sales potential.

The following are some channels for importing foreign goods into Australia:

• Through a commercial presence in Australia

Foreign companies establish a commercial presence (establish a foreign-invested enterprise, business cooperation contract, establish a branch, representative office, etc.) in Australia to import, distribute to agents, stores or sell directly to consumers.

Establishing a commercial presence to import goods into Australia is considered a direct and effective access channel, but requires more investment capital than other forms, and the establishment procedures also take more time and cost. Therefore, this form is suitable for large companies, trading in large quantities and wanting to develop long-term in the Australian market.

• Through import partners in Australia

Import partners can be units that purchase goods for their own direct use (large, valuable industrial equipment; raw materials for production, etc.) or specialized import units (professional importers), importing goods for redistribution in the Australian market.

Australian specialized import units are mainly wholesalers, distributors or intermediary agents that import goods for redistribution (for example, to stores, supermarkets, other units in need). Goods imported through these professional import units are often small machinery and equipment, common industrial supplies and consumer goods.

• Through online shopping channels

Foreign suppliers can also sell directly to Australian buyers through e-commerce channels such as Amazon Australia, eBay Australia, Kmart Online, etc. This form is becoming increasingly popular in Australia for international shopping, but is usually only suitable for consumer products.

Source: Center for WTO and International Trade

• Market size of Australia
• Trade activities of Australia
• Consumer characteristics in Australia
• Vietnam's exports to Australia