Consumer Trends in Australia                                                                     27 September, 2011Tony Ha...
Table of Contents (1/2 ) Executive Summary                                                     4 Consumer Behavior Of Au...
Table of Contents(2/2) Marketing of Debt                                        23 Community Attitude towards Big Banks ...
Executive Summary•   The Report contains the consumer behaviour which•   The consumer behaviour has evolved and they look ...
Consumer Behavior Of Australian Consumers-  An Overview       Confidence      of   Consumers                              ...
Busy Consumer &Digital Consumer
Online Pre-Purchase Research                                                                       Those that             ...
Multichannel BehaviourConsumers increasingly engaging with brands through multiple touch points.86% of US and UK consumers...
The In-store Experience … kiosks Interactive, stand-alone units that enable users to ,serve themselves‟ Minimize loss of c...
Online Shopping                                                                            Some of them as per survey are:...
Mobile commerce                                                                                                 In 2009, m...
6 Multi-channel,Shopper Archetypes                                         „Strategic Savers‟                   „Efficient...
Busy Consumer: ImplicationsCost effective convenience is a major consumer concern.These days it is addressed by the retail...
Digital Consumers
The Rise of Social Media                                        Shift from mass media to   67% are more likely to         ...
Implications forRetailers
Social Media User Demographics                                      Although    a    core                Women aged over  ...
Social Media User SegmentsCreators 13%• Publish Webpage• Publish or maintain Blog• Upload video or sites like YouTube     ...
Social Retailing           “Shopping meets social networks ”.           Following are the observations from ForeSee Result...
Findings for the Consumer Behaviour for Online   Retail- Australia                               Consumers                ...
Banking Habits- Research Data of 2010•   The nature and structure of the banking sector depends to a large    degree on th...
Marketing of DebtAs per the survey, 2 in 3 respondents (66%) reported receiving an unsolicited offer                      ...
Community Attitude towards Big BanksSurvey findings indicate that most Australians do not believe that the highly concentr...
Consumer behaviour towards the Mode of Payment
Consumer Behaviour on Making Payments in Australia                                                Transactions up to $50 a...
The evolution of Payment Patterns                                                              Card payments are responsib...
Payments by Cards                                                                              By contrast, growth in the ...
Shopping Behaviour in Australia
Shopping Behaviour in Australia     Australian Shoppers, especially those aged under 30 and with a credit card, are sendin...
Health Insurance-SomeInsights
Private Health Insurance in Australia- A snap shot                                                          Private health...
PayPal-Growth inAustralian market
Growth Of PayPal in Australia         PayPal in Australia has over 3 Million active users and over 30,000 Australian busin...
PayPal-Statistics in Australia                            Approximately      50%    of   PayPals                          ...
Opportunities for PayPal                                                                The PayPal report, which was condu...
Retailing-Some Facts & Strategies
Customer ExpectationsRetailers want their brand name to engender positive feelings among the general public. In a crowded,...
Key Trends for Online Retail-Australia                                                               The biggest one by   ...
Online Retailers response to Consumers Expectation Retailers need to make efforts in order to bring many customers online....
Amazon in Australia   As online sales soar in Australia, US operator Amazon                  says that their   Australian ...
Some Facts -Amazon                                                                                                        ...
Bibliography1. The Research facts by Australian Centre for   Research Studies-2010.2. Retail World Management & Technology...
Disclaimer   “The information contained in this document that includes text, graphics and links, are provided on an       ...
Consumer Trends in Australia                                                                     September 27th, 2011Tony ...
Consumer Trends in Australia - Tony Hackett (www.mypublicbrand.com)
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Consumer Trends in Australia - Tony Hackett (www.mypublicbrand.com)

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This deck is an aggregation of interesting consumer behaviour data that I have been collecting.

Also, I blogged about the value of Slideshare and Earnings Calls' Q&A: http://www.mypublicbrand.com/2012/02/18/slideshare-and-earnings-calls-qa-a-unique-recipe-for-meeting-preparation/


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www.http://tonyhackett.brandyourself.com/

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  • The power of Australia’s big four banks is unmistakable. Their underlying profits equate to almost three per cent of GDP, up from less than one per cent a quarter of a century ago. Of every $100 spent in Australia, nearly $3 ends up as underlying profit for the banks. Profits are so high because the banking market is highly concentrated. The big four banks now control more than 75 per cent of all bank assets and banks account for over 90 per cent of all lending by financial institutions in Australia. This level of concentration has distorted competition, allowing the big banks to reap underlying profits of around $35 billion per year, including $20 billion in ‘superprofits’ attributable to their market power. Most Australians believe that the banking market is overly concentrated: three in four survey respondents (72 per cent) said that the big four banks in Australia have too much market power.
  • PayPal grows online payments market in Australia (22.4.10)PayPal enables online payment for both large and small Australian businesses, including JB Hi-Fi, Roses Only, Dick Smith Electronics, Hoyts, Borders, Flight Centre, Deals Direct, Optus and Telstra.
  • Feller believes PayPal has room for significant growth in Australia. For one thing, the online spend is only 3% of the total, compared with around 6 or 7% in places such as the US, UK, Europe, and Korea.
  • Consumer Trends in Australia - Tony Hackett (www.mypublicbrand.com)

    1. 1. Consumer Trends in Australia 27 September, 2011Tony HackettBlog: http://www.mypublicbrand.com/Email: tonyhackett@mypublicbrand.comTwitter: https://twitter.com/#!/MyPublicBrandLinkedIn: ttp://www.linkedin.com/in/mrtonyhackettFacebook: https://www.facebook.com/mypublicbrand?sk=wallGoogle+: https://plus.google.com/u/0/b/109841685099483397637/109841685099483397637/posts
    2. 2. Table of Contents (1/2 ) Executive Summary 4 Consumer Behavior Of Australian Consumers- An Overview 5 Online Pre-purchase Research 7 Multichannel Behavior 8 The In-store Experience … kiosks 9 Online Shopping 10 Mobile commerce 11 6 Multi-channel, Shopper Archetypes 12 Busy Consumer: Implications 13 The Rise of Social Media 15 Social Media User Demographics 16 Social Media User Segments 17 Social Retailing 18 Key Findings for the Consumer Behavior for Online Retail- Australia 20 Banking Habits 22
    3. 3. Table of Contents(2/2) Marketing of Debt 23 Community Attitude towards Big Banks 24 Consumer Behavior on Making Payments in Australia 26 The evolution of Payment Patterns 27 Payments by Cards 28 Shopping Behavior in Australia 30 Private Health Insurance in Australia- A snap shot 32 Growth Of PayPal in Australia 34 PayPal-Statistics in Australia 35 Opportunities for PayPal 36 Customer Expectations 38 Key Trends for Online Retail-Australia 39 Online Retailers in response to Consumers Expectation 40 Amazon in Australia 42 Some Facts Amazon 43
    4. 4. Executive Summary• The Report contains the consumer behaviour which• The consumer behaviour has evolved and they look for gaining greater value for the money spent. They are looking for reliable and trusted brands and they are adopting sustainable living and conscious purchasing practices.• The Social media is being capitalized in most of the sectors to attain the customer attention and expand their reach.• Facebook and Twitter are the two most reported social media platforms being used, with Facebook leading the way. Almost half of all retailers (48 %) said they looked to communicate with customers via Facebook, and 29.2 per cent have communicated with customers in 140 characters or less via Twitter as of 2010.• PayPal has seen a considerable growth in Australia. The prime concern for the user while doing an online purchase is the security concerns. Consumers are hesitant to share their credit card details with the merchant and Pay Pal solves this problem. Even the online shopping giant Amazon is looking for a big time expansion in Australia because of the immense potential in the eCommerce there.• Consumers expect secure and engaging retailing experience even while and after making a purchase hence retailers need to think of strategies to achieve consumer.
    5. 5. Consumer Behavior Of Australian Consumers- An Overview Confidence of Consumers Consumers spending impacted by global economic Consumers more inquisitive, extremely uncertainty, rising interest cynical, demanding, and carefully, considering value rates, higher fuel prices = unpredictable. for money. increased costs of living. Adopting more convenient Being comfortable in reliable Seeking more engaging retail shopping methods and and trusted brands. experiences. channels. Interacting with other Adopting sustainable living Purchasing locally grown consumers through new and conscious purchasing and manufactured products forms of media. practices.Source: www.buseco.monash.edu
    6. 6. Busy Consumer &Digital Consumer
    7. 7. Online Pre-Purchase Research Those that spent more Up to 50% of Australians than three search online hours Growth linked prior to researching to technological purchasing in- online (11%), advancement store. spent and smart- significantly Ranked as phone devices. Of these 89% the most spent up to 3 more when important pre- hours purchasing. purchase researching the information product Internet source due to category online has a „ease of prior to permanent comparison”. purchase. role in consumer pre- purchase information search.
    8. 8. Multichannel BehaviourConsumers increasingly engaging with brands through multiple touch points.86% of US and UK consumers use two or more channels to search for and purchase products(Burnett Group, 2010)Multi-Channel consumers are more valuable!Consumers spend up to 10 times more which generate 25 to 50% more profit, Consumersdemonstrate greater loyalty.Different shopping channels bring distinct value at different stages of the shopping process.Catalogues and Internet have become a popular shopping combination. 80% of shoppers browsecatalogues before ordering online.
    9. 9. The In-store Experience … kiosks Interactive, stand-alone units that enable users to ,serve themselves‟ Minimize loss of customers to the Internet, while boosting sales and service and cutting operating costs within the store Consumer appeal due to speed, convenience and a matched flow of information on the Internet. Service kiosk transactions surpassed US$775 billion in 2009.Projected to reach US$1.3 trillion in 2013. Savvy retailers going a step further by equipping staff with hand-held PDAs that give access to product information, capture customer feedback, enable comparisons and provide information about stock availability.
    10. 10. Online Shopping Some of them as per survey are: To get better value(68% ofGrowth outpaces traditional retail Attraction lies in immediacy and respondents), To avoidchannels -up to 4-5 times faster. convenience. crowds(65%),To avoid queuing(48%) , To have access to a wider range of products (46%).Over 85% of the worlds onlinepopulation has used the Internet to 79% of Australians shop online,83% Australian online sales reachedmake a purchase -up 40% from two will do so in the next year. $18.6 billion in 2009years ago. It is forecasted to reach $23.4 billion by 2014 (IBIS World, 2010).
    11. 11. Mobile commerce In 2009, more than 25% of Australians accessed 1.2 billion people globally mobile Internet.25% use will use mobile commerce mobile banking and 12%Mobile phones, smart applications by the end of order goods and They provide opportunity tophones and PDAs 2012. Australian mobile services,41% users look for merge mobility, the web andincreasingly help customers market was worth $3.3 information on products and stores.perform daily tasks. million in 2008; and is services.36% look for anticipated to reach $4.1 suppliers of products and million by 2013. services. Over 60% would like to purchase more through their mobile phone. Source: www.salmat.com.au
    12. 12. 6 Multi-channel,Shopper Archetypes „Strategic Savers‟ „Efficient ‐greatest level of Sprinters‟‐dont research, emphas enjoy the is on finding the shopping best price (29%) process, functional shoppers (13%). „Dollar „Quality Devotees‟ Defaulters‟‐diseng ‐focus on aged, use price to quality, loyal to make quick brand the brands that decisions (13%) deliver it (16%) „Savvy „Opportunistic Passionistas‟‐w Adventurers‟‐love ho enjoy to shop and enjoy shopping, have the thrill of emotional hunting for connections to bargains and the shopping great deals (15%) experience (14%)
    13. 13. Busy Consumer: ImplicationsCost effective convenience is a major consumer concern.These days it is addressed by the retail offer, from store layout to product design andpackaging. Consumers are seeking multiple shopping channels to streamline and simplifyshopping.However, Inconsistencies across channels can result in lost customers and revenue, whilepositive experiences can deliver customer loyalty and profit.Mobile phones is a fast growing channel. There has been a rapid growth in online shopping;61% of consumers say retailers need to offer more flexible online services. Consumers pre-purchase research online means information on the Internet must be relevant, up to date andeasily accessible.
    14. 14. Digital Consumers
    15. 15. The Rise of Social Media Shift from mass media to 67% are more likely to social media, social media 86% of Australian Internet purchase more based on can take many forms. shoppers look to fellow recommendations from Internet users for opinions people in a community in and information about which they actively products, services and participate brands 73% agree "people like me" 46% value product are the most trusted recommendations from sources when making a friends purchase 74% are influenced by the 85% share information about opinions of others in making their purchases with people buying decisions, they know
    16. 16. Implications forRetailers
    17. 17. Social Media User Demographics Although a core Women aged over group, not only 55 are the fastest young growing consumers... demographic! 7% aged 13 to 17 36% aged 35 to 54 years years 16% aged 18 to 24 34% aged 25 to 34 years years
    18. 18. Social Media User SegmentsCreators 13%• Publish Webpage• Publish or maintain Blog• Upload video or sites like YouTube Critics 19% Comment on Blogs • Post Ratings & Reviews Collectors 15% • Use RSS • Tag Web Pages Joiners •Use Social networking Sites
    19. 19. Social Retailing “Shopping meets social networks ”. Following are the observations from ForeSee Results 2010 Social Media Report of (US),: 56% of shoppers who interact with social media websites have elected to “friend” or “follow” or “subscribe” to a retailer. More than 50% of online shoppers use Facebook, and of those online shoppers who engage in social media, more than 80% use Facebook. 49% of respondents who “friend” or “follow” companies through social media do so to learn about special deals and options ,45% of users do it to learn about products,5% use social media primarily for customer support. However, 60% of retailers do not have a presence on a social networks…85% of Gen Y shoppers participate in social networking (Price Grabber, 2010)
    20. 20. Findings for the Consumer Behaviour for Online Retail- Australia Consumers expect retailers to interact with them with a ConsumersConsumer consistent are spending Satisfactionbehavior is message more time is the keychanging... across the researching driver offaster than it full breadth their brandever has. of media purchases loyalty. Multi- consumers Catalogue channel are seeking &online are outperforms more the dominant single- engaging research channel experiences tool, reviews every time (both in and and ratings out of store) are the most trusted source of information.
    21. 21. Banking Habits- Research Data of 2010• The nature and structure of the banking sector depends to a large degree on the individual decisions of millions of Australians about Banking 18-34 35-54 55+ Total which institutions to trust with their financial affairs. Institutions/Age• The information presented beside is drawn from a survey of 1,360 One of the big 4 76.4 % 71.7% 60.8% 69.6 adults conducted by The Australia Institute in March 2010. banks• As Table 1 shows, survey respondents reflected the profile of the Another Bank 14.8% 13.8% 13.8% 14.1% retail banking market, with most respondents (70 %) saying they did most of their banking with one of the big four banks. 14% reported A Credit Union 6.8% 13.3% 24.1% 14.8% using another bank, while another 15 % banked with a credit union. Other 1.9% 1.2% 1.4% 1.5% Younger people (76 %of 18 to 24 year olds) were more likely to bank with one of the big four than older people (61 % of those over 55 Total 100% 100% 100 % 100% years).• Respondents who banked with one of the big four were asked Base = 1,360 Respondents whether they had ever considered switching to another bank (not one of the big four) or a credit union. Roughly half (49 %) had considered switching to another bank, while 41 % had considered switching to a credit union; together, 57 % had considered switching to one or the other. Viewed another way, fully 43 % of people Source: Research by The Australia Institute 2010 by Josh Fear, Richard Denniss and David Richardson banking with one of the big four have never considered switching to a smaller bank or credit union.
    22. 22. Marketing of DebtAs per the survey, 2 in 3 respondents (66%) reported receiving an unsolicited offer While people on higher incomes were morefor a new credit card in the past 12 Such unsolicited offers, which can come likely to receive such offers, the marketingmonths, while one in two (49 %) had by post, by email, in a bank branch and of debt among people on low incomes isreceived an unsolicited offer to increase even in a public place such as a shopping clearly widespread. For example, one intheir credit card limit. centre, were by no means restricted to three people in low-income households had36 % had received an offer for a personal those on substantial incomes. received an offer of a personal loan in theloan, and 18 % had an offer to increase past year without seeking one out.the available credit on their home loan. Source: Research by The Australia Institute 2010 & Reserve Bank of Australia
    23. 23. Community Attitude towards Big BanksSurvey findings indicate that most Australians do not believe that the highly concentrated structure of the banking market is desirable. 72% agreed that the big four banks in Australia have too much market power, while only 13 % disagreed. People who did their banking witha smaller bank or credit union were more likely to believe that the big four have too much market power.The survey also asked respondents for their views on whether its profits affect how „safe‟ a bank is. 19 % said that it is safer to depositmoney with a bank with bigger profits, while 4 % said that a bank with smaller profits is safer. Most respondents (=67 % said neither—profits make no difference to how safe a bank is.Younger people were much more likely to believe that a bank with big profits is safer. People who banked with one of the big four werealso more likely to hold this view, suggesting that perceived „safety‟ is a factor in their choice of financial institution.Among those who banked with one of the big four, respondents who had never considered switching to a smaller bank or credit unionwere more likely to believe that bigger profits equal more safety than those who had considered switching. Around a quarter of big-fourcustomers apparently do not interpret recent bank profits as evidence of overcharging; on the contrary, they see such profits as evidencethey have chosen a „safe‟ bank for their funds. Source: Research by The Australia Institute 2010
    24. 24. Consumer behaviour towards the Mode of Payment
    25. 25. Consumer Behaviour on Making Payments in Australia Transactions up to $50 accounted for around three-quarters of the number of payments in 2010, but only one-fifth of the value of payments. By contrast, only 0.1 % of transactions were more than $5 000, but they accounted for more than one-fifth of the value of payments. Given this, it is not surprising that cash continues to be the most widely used payment method in Australia, accounting for 62 % of all payments made by Australian consumers. Cards are the dominant payment method used for mid-sized transactions and are the second most frequently used payment method for all payments. BPAY, internet/telephone banking and cheque are important payment methods for higher-value transactions (particularly those above $500), although these payment methods collectively account for less than 10 per cent of the number of payments.Roy Morgan Research in December and November 2010
    26. 26. The evolution of Payment Patterns Card payments are responsible for the bulk of this shift away from using cash for low-value payments: card payments accounted for around 24 per cent of paymentsAlthough the broad patterns under $50 in 2010, up from 19 per cent in 2007. To aof payment behavior have lesser extent there has also been some substitution toremained unchanged, the other electronic forms of payment, such as BPAY; theuse of different payment industry with the largest decline in cash use wasmethods has evolved to household bills, where „paperless‟ billing, whichsome degree in the period encourages electronic payment, has been promotedbetween surveys. increasingly in recent years. Most noticeably, the relative use of cash declined. Although the average use of cash actually increased slightly between survey periods, the increase was less than for other payment methods .Therefore, the share of cash use in the total number of payments decreased from 70 % in 2007 to 64 % in 2010 . Roy Morgan Research in December and November 2010
    27. 27. Payments by Cards By contrast, growth in the use of credit cards has been subdued over the past three years. One reason for this preference for However, consumers haveAs per the Survey there has been debit cards may be the increased become better at avoiding creditrelative decline in cash use. The Within debit cards, growth was prevalence of surcharging on card surcharges, in part by usingaverage number of card particularly strong for payments credit card transactions between payment methods that do notpayments made by each on MasterCard/Visa debit cards. survey periods. attract surcharges. Indeed, therespondent in a week increased This likely reflects the wider The Reserve Bank first introduced proportion of payments on whichfrom around 3.5 payments to 4.8 issuance of these cards by the reforms to remove surcharging consumers actually paid apayments. This was largely driven major banks in the period restrictions in 2003, leading to a surcharge remained virtuallyby strong growth in the use of following the first survey. steady increase in surcharging by unchanged between the studies,debit cards. merchants over time. This has at around 5 per cent. resulted in a greater prevalence of surcharging merchants in 2010, compared with 2007. Roy Morgan Research in December and November 2010
    28. 28. Shopping Behaviour in Australia
    29. 29. Shopping Behaviour in Australia Australian Shoppers, especially those aged under 30 and with a credit card, are sending $4.2 billion a year to overseas online retailers, robbing local bricks-and-mortar shops of business. On the consumer side, bank surveys have shown that this trend is facilitated mainly by two important developments. First is the enhanced security of online payments. A recent PayPal survey reports that in the early days, 95 % of internet shoppers expressed strong reservations about the safety of online transactions. More advanced payment technologies have, however, recently increased consumer confidence in making online purchases. Second is access to credit cards and other forms of online payment. Research shows that more than half of internet sales are finalized using credit cards. In the economic literature, there are formal models of consumption behavior that have been used to explain this trend towards increased internet consumption. First of these is the Transaction Cost Economic (TCE) model, which basically says that a transaction subject will choose one form of transaction channel instead of others because of lower transaction costs. Applied to internet shopping, which is essentially a choice between the internet and traditional stores, consumers are thought to choose the internet channel because of the lower transaction costs. Lower transaction costs necessarily includes the money costs of the good or service purchased but also refers to convenience gained by the purchaser in the process. The second model is the standard economic model of competition, and clearly complements the TCE explanation. The internet acts mainly as a mechanism that reduces consumers costs of acquiring information about products and prices. Before the online age, someone looking to buy a fridge, say, might have gone into one or two local shops — and perhaps rung a few more — to compare prices. The web, however, makes it easy to gather more information.Source: education.theage.com.au/cmspage.php?intid=152
    30. 30. Health Insurance-SomeInsights
    31. 31. Private Health Insurance in Australia- A snap shot Private health insurance plays an important part in delivering Australians access to world-class care. Last year private health funds paid $12.4 billion in benefits towards the healthcare of the 11.7 million Australians with private health cover. By proposing to means-test the 30% Rebate, the Minister for Health and Ageing will make healthcare less affordable for all Australians, and by her own admission, add more pressure to our public hospitals. The Minister‟s press release of today fails to point out that the estimates of the effect of the Medicare Levy Surcharge changes on private health membership were based on the original 2008 Budget proposal, which was altered significantly in the Senate in October 2008. The Minister herself at the time of the altered legislation passing said “the projection of the number of people from Treasury that will drop out of health insurance is just under half a million, 492,000 people”. The Minister is being deliberately misleading in what she is choosing to tell Australian health consumers about those changes then and what will happen to our health system if the means-testing legislation is approved by the Parliament. www.ahia.org.au/news/media_releases/“no-minister of May 2011
    32. 32. PayPal-Growth inAustralian market
    33. 33. Growth Of PayPal in Australia PayPal in Australia has over 3 Million active users and over 30,000 Australian businesses as of 2010 now using PayPal as a secure way to send and receive money online. PayPal is capitalizing on the growing Australian eCommerce market with the number of customer registrations growing more than 25% in the last calendar year. The total payment volume for PayPal in 2009 was almost US$2 billion, an increase of 32 per cent from 2008, demonstrating rapid growth as consumers and businesses seek fast, safe and secure ways to shop online. In addition to domestic growth, PayPal has enjoyed a growth in cross border sales. The recent rise in the Australian dollar has brought about a year on year increase of 32 % in cross border payments as Australians seek bargains and choice from overseas, and take advantage of the strong dollar. Conversely, PayPal opens the door to Australian businesses seeking opportunities to sell products or services to overseas markets. With more than 84 million active accounts in 190 markets and 24 currencies, PayPal enables global eCommerce. Jonathan Reid, Director, MyCatwalk.com, an online Aussie fashion boutique and PayPal merchant commented: "Building revenue from overseas is critical to our business and PayPal has definitely helped us to grow our business abroad. Over the past 5 years, several factors have been responsible for the slower uptake of e-tail amongst Australian consumers. While the cost of shipping, long delivery times and uncertainty around returns policies have prevented some consumers from shopping online, concerns around the security of transactions remains the top concern to consumers shopping online today. James Stevens, CEO and Founder, Roses Only, one of Pay Pals first merchant partners in Australia, commented: "We integrated PayPal the minute it was available in Australia. Delivering a gifting service, it is critical that our customers feel confident that their payment is secure.Source: http://www.paypal-education.com.au/media/news_22042010.html
    34. 34. PayPal-Statistics in Australia Approximately 50% of PayPals Australian transactions are related to PayPal is fast growing and some of eBay purchases. the compelling reasons are: "Travel sites have very much It provides a way of paying without benefited from PayPal," said Frerk- sharing credit card details with the Malte Feller, Managing Director of vendor (even if the payment is PayPal Australia, for example by actually coming from a credit card), making it easier for people to book reducing the security exposure. from overseas. While consumers are more than ready for e-commerce, but retailers have lagged. The range of goods It is simply easier to make a PayPal available is not very impressive transaction than it is to enter a 16-digit (where are the fashion, house and card number, expiry date, security garden, and sports goods? he code and cardholders name. pondered), "and the prices arent very attractive" especially when shipping is extra.Source: http://www.itwire.com/it-industry-news/development/38516-paypal-australia-sees-growth-in-mobility?start=1
    35. 35. Opportunities for PayPal The PayPal report, which was conducted by Forrester Research and Leading Edge, reveals that despite Australians slow approach to The other area showing promise for PayPal eCommerce, online retail is a booming market with turnover expected is mobile transactions. The company has to reach $36.81 billion per annum by 2013. provides an API allowing developers to embed payments into apps for the iPhone, Travel and groceries remain the largest two Blackberry, Android and other platforms, online markets, taking up $4.9 billion this year, and Feller thinks this will be used in ways followed by appliances and home "we havent imagined yet. improvement, set to reach $2.6 billion this year. Other major categories include computer tech at $2.5 billion and apparel at $1.4 billion. In fact, 38% of respondents said competition (2009) from low-cost online retailers would be the biggest threat to profitability, especially those overseas. A separate 32% claimed a PayPal also warns that dedicated lack of skilled staff will hurt, followed by 25% eCommerce stores and Multichannel who claimed the price and performance of retailers are suffering from some big issues marketing would be harmful. About 20% including the high price of postage and said logistics and delivery issues would hurt content management, resulting in lower profitability. inventories than bricks-and-mortar stores.Source: http://www.mypaymentsolutions.com/2010/11/online-retailers-urged-fix-logistics-problems-australian-ecommerce/ &http://www.itwire.com/it-industry-news/development/38516-paypal-australia-sees-growth-in-mobility?start=2
    36. 36. Retailing-Some Facts & Strategies
    37. 37. Customer ExpectationsRetailers want their brand name to engender positive feelings among the general public. In a crowded, competitiveand increasingly global market place, differentiation is becoming vital.Across the study the quality of customer service is highlighted as a driver of customers that does not focus on price,closely followed by after purchase service. Store location and in-store merchandising are also recognized as havingsignificant impact.“Customer service is critical as customers return as they know they will be given one-on-one help compared to thatof other stores.” one retailer said.Facebook and Twitter are the two most reported social media platforms being used, with Facebook leading the way.Almost half of all retailers (48 %) said they looked to communicate with customers via Facebook, and 29.2 per centhave communicated with customers in 140 characters or less via Twitter.Customers rate their retailing experience on certain parameters. They are: Quality of Customer Service whilepurchase, Quality of Customer Service after sales, Store location, In-store merchandising and other displays, Storedesign and fit-out, Window display .Source: http://www.businessofretail.com.au/2011_Report/public/pdf/2011_report.pdf
    38. 38. Key Trends for Online Retail-Australia The biggest one by far is the growth of mobiles, for accessing the internet and buying products. The second is the use of social media, so people referring to friends and family when talking about brands and The third is the integration of products." digital into traditional retailing. So things like interactive store experiences, bringing technology into the traditional retailing environmentSource: fetchoscaraccessories.bigcartel.com/why-shop-online
    39. 39. Online Retailers response to Consumers Expectation Retailers need to make efforts in order to bring many customers online. They also need to enhance the shopping experience of customers. There are certain areas where the retailers and online marketers need to focus. They are: The confidence between a consumer and an online site has to be built. One needs to give consumers the confidence to buy online when they cant touch the product or cant see it.“Eg usage of high quality photos, making sure the retail experience is a high value experience. Online retailers need to start filling their sites with ways to communicate with friends and family through social networks. One needs to be offering the possibility to rate and review products, and consumers should be allowed to share your products on social networks. The third and final piece of advice is around convenience, which feeds back into the growth mobiles and smart phones. "You need to allow that people can buy your products anywhere, at any time," Stephen Foxworthy says. This is especially important given the dollar is now at parity and people are looking at buying overseas.Source: Forrester Research and Leading Edge, Comments by Reactive strategy director Stephen Foxworthyhttp://www.smarttechnology.com.au/blog20101125ecommerce-sales-heads-27-billion-2010
    40. 40. Amazon in Australia As online sales soar in Australia, US operator Amazon says that their Australian business has increased "significantly" in 2010 has reported a 51% increase in sales to $9.91 billion. On the downside, profits fell 8 percent to $191 million in the second quarter due to additional investments in infrastructure. Amazon did not give specific details about sales of its Kindle e-readers in Australia, but Amazon CEO Jeff Bezos did say the $139 Kindle 3G version with Special Offers - a version of the Kindle released during the quarter that is subsidized with ads - is now its top-selling Kindle device. Jeff Bezos said that "low prices, expanding selection and innovation" drove the companys second-quarter growth. This growth means Amazon must keep investing in operations expansions and upgrades along with moves into overseas countries like Australia and India, in order to support the proliferation of its online retail business. to rise. Overall, operating expenses rose 54 % to $9.71 billion.Source: http://www.smarthouse.com.au/iPods_And_Portable_Players/Industry/K5G9B2X7
    41. 41. Some Facts -Amazon Amazon. COM has also Customers have been taking completely turned around the unfair advantage of the fashion purveyor, by setting strong Australian dollar and up a members only Online shopping giant Amazon. As the materials are shipped have directed themselves website, Myhabit.com which Com has decided to expand into in Australia from other towards online shopping. offers to its customers Australia. Amazon‟s web services countries, buyers in Australia This in turn has an adverse international brands such as are ready to start operating from have to pay a little extra. effect on the local retailers. In Dolce and Gabana. A lot of a local data centre by early next However, many complaints the month of July Amazon. the products purchased via year to meet the needs of have not been made COM has also taken over Myhabit.com are available on enterprise and government regarding this due to the Britain‟s Book Depository, a 60% discount, the website clients. strong domestic currency. which is really popular offers shipping and delivery amongst Australian book in more than 50 countries lovers as it offers including Australia for only considerably lower . USD 15 flat rateSource: thecourierpigeon.com.au/amazon-coming-to-australia/852198/
    42. 42. Bibliography1. The Research facts by Australian Centre for Research Studies-2010.2. Retail World Management & Technology.3. Online Retailer4. CeBIT Australia.5. Nielsen.6. eTail20107. Reserve Bank of Australia.8. Australia Institute Research Facts-20109. Forrester Research and Leading Edge10.Smart Technology Australia11.www.businessofretail.com
    43. 43. Disclaimer “The information contained in this document that includes text, graphics and links, are provided on an “as-is”, "with all faults" and "as available" basis and are without warranty of any kind. While I depend on sources that are believed to be reliable, it cannot rule out errors in judgment or application. The document is intended for “information” and “general guidance” purposes only.” “Investment decisions and/or other decisions based on the conclusions and potential strategies mentioned in the document are not necessarily endorsed by My Public Brand Inc. My Public Brand Inc does not represent or warrant that the information provided is accurate, complete or current and will not be held liable for any damages of any kind arising from the use of this information.”
    44. 44. Consumer Trends in Australia September 27th, 2011Tony HackettBlog: http://www.mypublicbrand.com/Email: tonyhackett@mypublicbrand.comTwitter: https://twitter.com/#!/MyPublicBrandLinkedIn: ttp://www.linkedin.com/in/mrtonyhackettFacebook: https://www.facebook.com/mypublicbrand?sk=wallGoogle+: https://plus.google.com/u/0/b/109841685099483397637/109841685099483397637/posts
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