By Kymberly Martin
What can retailers do about it?
Imaging solutions provider, Design Identity Australia has identified five ways Australia’s $300 billion retail industry can ensure continued business success. “We prepared some tips to help retailers face the changing face of the retail landscape,” director Mark Scarrott, said.
So just what does Amazon’s arrival mean for Australian retailers?
Firstly consumers want convenience. Amazon is known as a relentless innovator. When it comes to logistics, price and customer focus, it continues to solve everyday consumer issues. From providing faster delivery, introducing Afterpay and PayPal, or creating new apps with offers, the question to continuously ask is: “How can I make my customer’s lives easier?”
Whether or not Australia’s online and offline retailers realise it, the bar for them has just been raised. Amazon plans on opening distribution centres in every state from September 2017. Consumers are set to be the big winners, with sources claiming Amazon is set to undercut local prices by up to 30%, while offering up services like Amazon Prime delivery that will significantly cut e-commerce delivery times. Consumers will have more choice, at lower prices, delivered faster than ever before. How can Australian retailers compete? Sort out shipping; Fix the online checkout and Improve customer service.
Secondly, offer something Amazon can’t. Amazon’s main competitive advantage lies within their logistical expertise. So to get ahead of the competition, offer a unique selling point that the giant retailer can’t due to their fixed business model. Differentiate your product range, innovate with aspects of your customer service, or target a different audience.
Thirdly, compete with a new look. With industries such as fashion, sports, electronics, books, shoes and many others on the firing line, updating your brand aesthetically could be the difference between disruption and success. From rebranding or updating packaging, to advertising or campaigning, make sure you strengthen your market image.
Fourthly, provide an omni-channel experience. As tech-savvy consumers learn to use their ever-increasing buying power in a more social and experiential ways, brands need to use all available avenues to remain relevant. Include creative catalogues, mobile devices, pop-up stores, social media, telephone sales and any other opportunities to communicate with customers.
Finally, review your bricks and clicks. It’s becoming clear that the retail industry isn’t just shifting from physical stores to online sites. It’s about devising a model that incorporates both to reinvent your customer’s experience. Implementing new ideas, regular revisions and adjusting your model accordingly will make a big difference for the future of your business.