In an evermore competitive market, Australian retailers are struggling against the rising number of multinational chains setting up camp.
Big name chains such as GAP, Zara and Topshop have all opened their doors, with some local retailers believing their presence has had an impact.
Richard Jenkins, Commercial property director at Knight Frank, believes that Australia’s “economic growth” has brought in major overseas business.
“If you’re looking for growth as an international, it’s really going to be outside Europe and the US,” he said. “Australia – seen as having 21 years of economic growth – is a good place to start.”
On the other hand, some spectators are in doubt of how long Australia’s economic strength will hold out.
Quentin Grafton, the former head of Australia’s Bureau of Resources and Energy Economics, told AFP that there are “definite concerns” for the foreseeable future.
“If I look at the numbers in China, they are worrying,” he said. “There are definite concerns — it’s a clear and present danger,” Grafton told AFP.
As such retailers are being pushed to find new avenues for growth, and online is believed to be the area with the most potential.
Channel Advisor Corporation today announced the results of its 2014 Snapshot of Australian E-Commerce study, which revealed that online marketplaces and digital marketing have become key points of focus for retailers.
Over 400 Australian retailers, earning $1 million or more in online business, were surveyed. Some 70 per cent claimed to invest in digital marketing, with one in five online visitors coming from mobile use.
The number one customer-service feature came down to free online shipping, with 65 per cent of Australian retailers offering the service in the past year and citing it as their way of achieving a higher level of customer satisfaction.
“Australians spend an estimated $15.6 billion each year online, and this is only the tip of the e-commerce iceberg,” said Mark Gray, APAC managing director at Channel Advisor.
“Without the legacy infrastructure that many global counterparts might have, Australian retailers have the advantage of moving with agility.”
Russell Zimmerman, ARA Executive Director, says that Australian retailers need to educate themselves in consumer trends if they are to succeed.
“The survey shows a need for greater planning and measurement, as retailers often answered ‘I don’t know’ when asked questions about where their sales or webstore traffic originated, or how much they were spending on advertising,” she said. “E-commerce is, and will continue to be, a core part of retail, and retailers must continually learn how to operate efficiently and effectively in this new world.”
