The Internet and eCommerce have quite literally been the biggest change to retailing since the invention of the department store. We have been studying the rise of eCommerce around the world and have been saying that all the trends indicate that online shopping will account for 20% of all retail in Australia within 10 years.
Currently, eCommerce accounts for 5-6% of the $240 billion Australian retail economy whereas that figure is around 8-9% in the US and as much as 12% in the UK. Some experts have predicted that UK online sales will continue to grow at rates of 25% per annum and online sales could reach 23% of the total UK retail economy by 2016. That sounds overly ambitious to us, but is indicative of the massive change occuring in the UK.
Australia is often 2-3 years behind some overseas trends and poor download speeds and the absence of catalogue buying are some of the reasons blamed on the slow take up. We think that major retailers have also been slow to see the potential and they have allowed businesses such as Catch of the Day, Deals Direct and Kogan to get the jump on them.
But the big retailers have finally woken up and recognise the potential that online can provide. In fact, Eli Greenblat wrote in the weekend Melbourne Age newspaper (1st Dec 2012) that old world retailers can use “omni channel” or cross channel marketing to compete and even beat online only retailers.
Eli Greenbat goes on to quote Karson Stimson, the founder of the internet retailing agency WeAreDigital, saying the omnichannel strategy can actually mean that bricks-and-mortar retailers could be at an advantage over online pure plays, as their physical presence enables them to touch consumers in the offline world.
”Omnichannel allows the customer to research in the store and buy online, or research online and buy in the store, or buy online and return in store,” Stimson says.
”And omnichannel customers are spending significantly more than single channel shoppers.”
We were also pleased to hear that finally other Australian institutions have started to agree with our predictions with Alan Oster, the chief economist at NAB coing out and predicting online sales will comprise approx 20% of the Australian retail economy within 10 years.
If you are interested in how you can create a successful multi-channel retail experience for your customers, call Andrew at Plan 4 Profit on 0412 548 609 and request an appointment.
Read more: http://www.theage.com.au/business/tis-the-season-to-be-online-20121130-2amcn.html#ixzz2DwvQZa19