Cheap deals drive consumers online for alcohol

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

And a new 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.

“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 Canstar Blue spokesman Simon Downes. “The majority of people still enjoy going into bottle shops, but the perception is that the best value will be found online.

What drives customer satisfaction when buying alcohol online?

Source: www.canstarblue.com.au Online Liquor Stores survey.

“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 who have bought alcohol online in the last six months and found that red wine (28%) was the most common purchase, followed by beer (22%), white wine (16%), whiskey (9%) and vodka (7%). Rum, bourbon and gin were also popular, while champagne and cider were the most common purchase for 5% respectively.

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 ten consumers who bought alcohol online will drink every day and 40% will have no more than three alcohol-free days a week. Meanwhile 22% of respondents said they often binge drink and one in three admitted they spend more they should on alcohol.

“We’re also a nation of social drinkers, with a whopping two-thirds of survey respondents admitting it’s rare for them to not have a glass or two at a social event,” added Mr Downes. “This is particularly true of men and older Australians.”

How do consumers rate online liquor stores?

Ibisworld reports that online alcohol sales have skyrocketed in recent years and now account for around 7% of total liquor sales, with Woolworths estimated to have 44.6% 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 Canstar Blue spokesman Simon 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.”