Australian retailers losing out on e-tail sales
Australia is lagging behind the rest of the world in the uptake of online retailing, according to new research by insights consultancy The Leading Edge.
The report, based on a survey of 1215 Australians, found the number of people actively buying online has stagnated and those who are not buying already have no intention to start anytime soon. While some blame Australia’s lack of broadband functionality, the research says the real reason for the stagnation is traditional bricks and mortar retailers standing in the way of their own success in the online retail environment.
Says The Leading Edge director of retail, Phil Bonanno: “Many Australian retailers have deprived the online environment of serious investment and focus. Retailer sites in Australia are little more than catalogue pages on the web. Few sell anything online and most offer no integrated services between stores and sites. Most websites lack innovation, fail to engage the consumer and offer nothing new or exciting. In effect, Australian consumers are being short-changed and given no reason to alter their purchasing habits and spend more online.”
The survey found the key barriers to further uptake were consumers' fears regarding a retailer’s return policy (47%) and logistics (delivery charges, 32%). A lack of integration between a retailer’s traditional bricks and mortar business and its online business is barring significant change in consumer attitudes, says Bonanno.
“If Australian retailers were serious about their online business, growth could be revolutionary rather than the slow paced evolutionary we are currently experiencing. Online is the fastest growing retail channel globally, so the opportunities for Aussie retailers are huge.
“Overseas, Tesco, Best Buy, Wal-Mart and Costco are leading the way with online sales exceeding $US1 billion per year. These smart traditional retailers have perfected the on-line off-line integration where customers can buy on line and pick up/return in store. Savvy Australian retailers should be watching keenly and moving quickly.”
According to the most recent population survey by the Australian Bureau of Statistics**, 61% of Australians shopped online during 2006/2007. The Leading Edge survey found the Australians who are currently shopping online are doing so at the popular retailers set up specifically for online shopping. EBay took the top spot with four out of five Aussies who have purchased online admitting to using this website.
For Australian retailers wishing to be more effective online, The Leading Edge recommends that a smart strategy would be to utilise online sites such as EBay, where consumers are already converging.
Source: Inside Retailing
Monday, 7 April 2008
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