Aussie retailers have finally switched on, but it might all be a little too late.
By Grace Earl
With online retail stores making leaps and bounds in 2011, it’s no surprise that traditional bricks-and-mortar stores are falling behind. Having an online presence has never been more important for Australian retailers, and don’t they know it.
Online stores offer their consumers a vast array of products, convenience, and a hassle free shopping environment. What then would encourage shoppers to shop in-store when the Internet can provide a high level of customer service without even having physical staff to provide it? When the online shopping phenomenon took off in Australia in 2009, many were hesitant about the safety and reliance of the Internet. Until very recently, many consumers felt the more traditional shopping experience was a much safer and more familiar environment. However, it is becoming more and more evident that shoppers are now in tune with the virtual online world of shopping.
The pros out way the cons. Especially when the cons usually associated with shipping hassles and wrong sizes/styles are being eradicated with (often) free shipping, and detailed photos and information regarding products. One only has to look at Topshop’s online store to realise just how in tune the online world is with real world shoppers. Product forums accompany each style, with customers being able to comment on the quality of the product, which in turn encourages or deters future customers from punching in their credit card details.
Consumers are empowered by the online shopping experience. According to a PricewaterhouseCoopers (PWC) study, Australians will spend more than $13.6 billion on online shopping in 2011, an increase of 13% on last years $12 billion. It is therefore not surprising that online shopping (both local and international) is expected to grow twice as fast as the total retail market in Australia.
In a GetPrice survey, two thirds of consumers prefer online shopping. Customers are now able to avoid constant crowds and the hassle of parking. Perhaps in the not too distant future, finding a park won’t be so difficult, and the never-ending line for the fitting room will have diminished. More than ever before, it is vital that fashion brands integrate a digital shopping experience into their brand identity.
Fashion brands must support an online store if they are to succeed in the ever-worsening retail environment. In giving consumers the option to either shop in-store, or shop online, it may encourage consumers to keep their money within Australia. With competing online stores such as Asos and Topshop, Australia must encourage its consumers to spend their hard earned cash locally. It’s one thing to integrate an online store, but it’s another to actually persuade shoppers to interact with the new platform.
Not only do brands need to ensure that they utilise online platforms, they also need to maintain a constant online presence through social media outlets. Most notable brands have an associated Facebook page that allows customers to view latest arrivals, promotions and often enter into competitions. Essentially it is virtual advertising at its best.
The question remains, how does a traditionally bricks-and-mortar store seamlessly combine a successful online store into the brand? Many have tried, and many have failed. Even the big guys, like Myer and David Jones are showing signs of weakness. Although both companies have introduced an online store, it is clear that these retail heroes of the past are struggling to please the tech savvy clients of the 21st century. These stores are attempting to maintain the tricky balance between encouraging consumers to actually step foot in a store, and promoting their online platform. If their focus is centred on the online platform, the traditional retail store will be undermined.
It is this exact reason why online giants such as Asos are as successful as they are. Asos as a brand as firmly secured itself in the online world. They are not concerned or preoccupied with retail concept stores and ensuring that their customers utilise both platforms. Instead having a solely Internet based company means that there is only one-way for customers to attain a product. Essentially they have utilised the online world to channel a direct line between their products and their customers creating impenetrable brand loyalty. More locally, both Myer and David Jones have reported falls in revenue. In the interim report, David Jones reported a decline of 11.2% compared with the same period of the last financial year. Whilst Myer reported a loss of 1.2% despite having opened two new stores and introducing the popular Australian brand, Sass and Bide onto the sales floor.
While retail giants continue to report losses, Australian owned online store Ozsale.com.au celebrates a successful 2011. The company turned over enough revenue to open a new distribution centre and increased their staff by another 240 employees. In the last twelve months their online membership has grown from over 800,000 to nearly two million in Australia alone.
While things are looking grim for traditional Australian retailers, 2012 is looking to be a big year in the virtual world.
