In October 2011, brainmates, in partnership with Nine Rewards, conducted a nation-wide survey of over 1000 Australian consumers to uncover the key issues and attitudes that are driving their purchase decisions. The results of the survey are outlined in this brainmates white paper - a must read for product manager’s seeking to better understand the mindset of today’s consumer and deliver ’valuable’ end to end product experiences. For those specifically working in the retail industry, this research provides insights that will answer the burning question of the moment –what aspects of retailing are failing to deliver on this end to end product experience. In answering and responding to this question, retailers will identify new and sustainable sources of competitive advantage. http://www.brainmates.com.au/brainrants/retail-revival-a-fresh-perspective

1. Retail Revival: A Fresh Perspective
In December 2011,
brainmates partnered with
Nine Rewards to research
current consumer attitudes
and spending habits.
The findings have significant
implications for Australian
retailers in their bid to entice
local customers.
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2. Challenges for Australian Retailers
Volatility of the global economy.
Rise of online retailing.
Penetration of smart phones/ m-commerce.
Rapidly evolving technology.
Strong Australian dollar.
Competition from international retailers.
Control in the hands of the customer, social media and
sharing of experiences.
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3. Our Approach
We surveyed 1073 Nine Rewards customers across Australia and
analysed data using a Product Management Framework.
Men (47.7%): Women (52.3%)
Aged 18-64
83% live in main cities
Salaries from under 30K (13%) to over 100K
(36%)
Majority earned 50-100K (56%)
43% have children
66% married
8% lived with their parents
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4. 1. Key Findings
The cautious consumer:
73% reported to be saving every month.
Does this mean consumers are not spending?
No. The Australian consumer is simply more
cautious.
The cautious consumer decoded:
1. Researches the best price before buying (61%)
2. Plans what they want to buy (46%)
3. Doesn‟t buy as much as used to when at the
shops (46%)
4. Don‟t go to the shops as much (38%).
5. Mostly shops online (14%) –Page no.

5. 2. Key Findings
Online spending and sentiments:
Over 9 million Australians now shop online.
96% have made purchases online in the last 12 months.
What are the main reasons for shopping online?
1. It is cheaper. (75% )
2. It is more convenient/ “it is delivered to my door”. (74%)
3. Compare prices more easily. (67%)
Online by category:
Travel is the leading category in Australian online retail ($7.4b);
65% of respondents purchasing travel online.
People least likely to buy shoes and groceries online.
Purchase of electronics on the rise. (51% of males purchase –Page no.
online)

6. This Means That….
1. Consumers are still spending but taking a more considered
approach to purchasing.
2. Consumers are not persuaded to purchase by traditional
retailers‟ discounts or online deals (Only 36% stated they
only buy products on sale - a statistic that raises doubts
about the appropriateness of the widespread discounting
strategy retailers have adopted.)
3. Online retailing should not be blamed for the contracting
retail revenues. Online retail is still only a fraction (3.7%) of
total consumer goods retailing.
4. The online retails industry is fragmented with no single
operator (of the 30,000 online retailers) controlling more
than 3% of the market.
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7. Other Interesting Insights From Our Research
PROBLEM: Customers have little time.
INSIGHTS:
1. Online voted most popular retail channel for shopping
during the weekdays; shopping centres preferred for
shopping on weekends.
2. Online purchases mainly made while at work (61%),
late at night (71%) and when the kids are asleep. (65%)
SOLUTION: Multi channel shopping.
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8. Other Interesting Insights From Our Research
PROBLEM: Customers don‟t have identical retail habits.
INSIGHTS:
1. Women shop independently; 58% prefer to shop on
own.
2. Men shop with their wives; 42% prefer to shop with
their wives.
SOLUTION: Customer research and segmentation.
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9. Recommendations –Page no.

10. 1. Be Customer Centric
1. Insights to be drawn from the users of
the products and services themselves –
your customers!
2. Get to know your customer‟s
needs, drivers and pain points through
surveys, interviews, observation!
3. Understand and stay focused on your
customers and what they value: write
user and buyer personas and scenarios.
4. Consider the end-to-end product
experience: ensure each element
satisfies your customer‟s needs and
adds value in their eyes.
–Page no.
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11. 2. Keep an Eye on International Trends
1. Getting Bigger and Going Global
Globalisation and consolidation will need to be
considered by every local retailer if they want to
remain competitive.
2. Building Great Products
A significant shift to becoming the „development‟ of
great brands. E.g. Tesco in the UK, and
Woolworths in Australia producing private label
products.
3. Understanding the individual consumer
Ramping up customer relationship management in
a push to understand shopper behaviour;
multidimensional segmentation and target product
selection and range. Developing loyalty programs no.
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12. 3. Apply a Product Management Approach
Find new business models to generate revenue. Look to
other industries for ideas.
Understand your customers intimately and what retail
needs they may have which are not currently being
satisfied by other retailers.
Ensure that your business articulates its value
proposition clearly and to the right target market.
Always prepare well for the launch of new products.
Ensure staff are trained so that they can answer
questions.
Monitor your business and your results religiously.
–Page no.

13. About Us
brainmates For a full copy of the
Product Management People retail results, please visit
Leads companies to strategise, design and deploy http://www.brainmates.c
customer-centric products and services. om.au/brainrants/retail-
Offers professional consulting and training. revival-a-fresh-
Clients include industry leaders in media, perspective
communications, government, financial services,
medical and software.
Brianna Ragel
Author and Product Marketer, brainmates
www.brainmates.com.au
8 years of experience crafting and executing Suite 906, Level 9
strategic branding and marketing initiatives in 84 Pitt Street
Sydney NSW 2000 Australia
Australia and London. Tel: +61 (2) 9232-8147
Fax: +61 (2) 9232-1694
–Page no.
Email: info@brainmates.com.au
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