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Price drives online alcohol

The online alcohol sales industry in Australia is expected to be worth more than $1 billion in the next five years as more consumers order their drinks online or via a smartphone or tablet.

A survey by consumer research company, Canstar Blue, has found that the perception of getting good value for money is the main motivation for those choosing to buy alcohol online rather than from a bricks and mortar store.

Simon Downes, Canstar Blue spokesman, said the majority of consumers still enjoying going to the bottle shop, however, the perception is that the best value for money will be found online.

“The majority of consumers are being drawn to cheap deals or special offers, rather than the quality of alcohol available and the convenience of buying online,” said Downes.

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“The bottom line is what matters most to consumers of all age groups – especially those in or nearing their retirement – but the younger generations are also attracted to the diverse range of drinks available online.”

Canstar Blue surveyed more than 700 adults have bought alcohol online in the last six months and found that red wine (28 per cent) was the most common purchase, followed by beer (22 per cent), white wine (16 per cent), whiskey (nine per cent) and vodka (seven per cent). Rum, bourbon and gin were also popular, while champagne and cider were the most common purchase for five per cent.

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The average monthly alcohol spend of online shoppers was found to be $108, with Baby Boomers ($118) easily outspending Gen X ($98) and Gen Y ($84), while men ($122) were found to spend more than women ($90).

The survey also found that one in 10 consumers who bought alcohol online will drink every day while 40 per cent will have no more than three alcohol free days a week.

Ibisworld reports that online alcohol sales have skyrocketed in recent years and now account for around seven per cent of total liquor sales, with Woolworths estimated to have 44.6 per cent market share. Industry revenue is expected to hit $1.1 billion by 2019-20 as technology and delivery systems improve.

For the third time in four years, Dan Murphy’s has claimed Canstar Blue’s Most Satisfied Customers Award for Online Liquor Stores, earning five star ratings in six out of eight research categories, including delivery speed, value for money, and overall satisfaction.

“Such consistent success is a clear indicator that Dan Murphy’s is keeping its customers very happy,” said Downes.

“The key to overall customer satisfaction is quality produce at a reasonable price – and consumers clearly think they are getting that from Dan Murphy’s.”

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