Retail Revival: A Fresh PerspectiveIn December 2011,brainmates partnered withNine Rewards to researchcurrent consumer atti...
Challenges for Australian Retailers Volatility of the global economy. Rise of online retailing. Penetration of smart phone...
Our ApproachWe surveyed 1073 Nine Rewards customers across Australia andanalysed data using a Product Management Framework...
1. Key Findings        The cautious consumer:        73% reported to be saving every month.        Does this mean consumer...
2. Key FindingsOnline spending and sentiments:Over 9 million Australians now shop online.  96% have made purchases online ...
This Means That….1. Consumers are still spending but taking a more   considered approach to purchasing.2. Consumers are no...
Other Interesting Insights From Our Research PROBLEM: Customers have little time. INSIGHTS: 1. Online voted most popular r...
Other Interesting Insights From Our Research PROBLEM: Customers don’t have identical retail habits. INSIGHTS: 1. Women sho...
Recommendations   –Page no.
1. Be Customer Centric 1. Insights to be drawn from the users of    the products and services themselves –    your custome...
2. Keep an Eye on International Trends        1. Getting Bigger and Going Global           Globalisation and consolidation...
3. Apply a Product Management Approach          Find new business models to generate revenue.          Look to other indus...
About UsbrainmatesProduct Management People                         For a full copy of the retail  Leads companies to stra...
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A Fresh Perspective on Australian Retail

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brainmates is a Sydney based consulting and training company. As expert Product Managers they help companies from a range of industries design and develop products that customers will love.
For the full retail report see:
http://www.brainmates.com.au/brainrants/retail-revival-a-fresh-perspective

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  • Each methodology is each intended for a different purpose.
  • A Fresh Perspective on Australian Retail

    1. 1. Retail Revival: A Fresh PerspectiveIn December 2011,brainmates partnered withNine Rewards to researchcurrent consumer attitudesand spending habits.The findings have significantimplications for Australianretailers in their bid to enticelocal customers. –Page no.
    2. 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. 2
    3. 3. Our ApproachWe surveyed 1073 Nine Rewards customers across Australia andanalysed 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 3
    4. 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. 5. 2. Key FindingsOnline 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. 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 – raising doubts about the 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. 6
    7. 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. 7
    8. 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. 8
    9. 9. Recommendations –Page no.
    10. 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. 1 0
    11. 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 no. –Page programs
    12. 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. –Page no. Monitor your business and your results religiously.
    13. 13. About UsbrainmatesProduct Management People For a full copy of the retail Leads companies to strategise, design and results, please visit http://www.brainmates.c deploy customer-centric products and om.au/brainrants/retail- services. revival-a-fresh-perspective Offers professional consulting and training. Clients include industry leaders in media, communications, government, financial services, medical and software.Brianna Ragel www.brainmates.com.auAuthor and Product Marketer, brainmates Suite 906, Level 98 years of experience crafting and executing 84 Pitt Street Sydney NSW 2000 Australiastrategic branding and marketing initiatives in Tel: +61 (2) 9232-8147Australia and London. Fax: +61 (2) 9232-1694 –Page no. Email: info@brainmates.com.au 1 3

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