Embrace online: after Borders fall consumers issue a wake-up call for Australian retailing

Australian retail failures such as the recent collapse of Borders Australia and Angus & Robertson will continue to occur unless retailers embrace online shopping, according to a new study into Australian shopping behaviour.

The research, conducted by market research firm Colmar Brunton, found that Australian consumers are frustrated with the limited online shopping options from national retailers, forcing more than half to choose to spend their money offshore with global competitors.

Further, 2 in 5 believe Australia is behind the rest of the world when it comes to online retailing.

This is coupled with the exponential rise of online shopping, with 40 percent of Australians now conducting a significant amount of their shopping in the digital world.

“Many Australian retailers stayed away from online following the dotcom crash, while global competitors spotted opportunities. We’re now playing catch-up,” says Dr Steve Nuttall, managing director of Colmar Brunton Sydney.

“This is no longer about competing just on our turf. Global retailers are penetrating our borders without building a single store here. Australian retailers have had a view that the name of the game is bricks and mortar but while they have been focusing on this, other e-tailers are focusing on building trust with consumers .It’s not just about being price-competitive. Choice and convenience are huge drivers for consumers”

The research also found that while consumers now expect all retailers to offer online shopping offers, there is a growing disparity between what retailers are delivering. More than a quarter of consumers believed that they could buy online from Harvey Norman and Target, when actually they could not have done at the time.

“This just highlights how out of touch Australian retailers are with consumers who expect our leading brands to have a fully fledged e-tailing offer. But all too often, the value proposition isn’t there.” says Nuttall.

Convenience is the driving factor pushing people out of shopping centres and into online retail stores.

•    85 percent of consumers say they shop online purely because of convenience. Another 49 percent cited it also allowed them to avoid parking, traffic and shopping queues which come with Christmas shopping experience.

•    66 percent of consumers think you usually get a better deal online •    and 54 percent believe there is greater choice online compared to in-store

However the biggest barriers stopping people from spending more of their money online continue to be focused around security and post-sale customer service.

•    86 percent saying they will only shop from trusted websites •    57 percent concerned about product quality •    55 percent saying it is hard to get a refund.

The trust factor only serves to underline the huge online potential for flagship Australian brands.

For more information or a copy of the report “Clicks not bricks: the opportunity for e-tailing in Australia” contact Caroline Flammia: caroline.flammia@cbr.com.au or +61 2 8873 0888).