The retail industry in one of the biggest sectors within Australia. Representing the very end of the supply chain, success in this industry often directly benefits suppliers and manufacturers.
With positive indicators for future growth, how can firms utilise business management software to successfully realise the potential in the retail industry?
Retail spending strong in 2015
According to Roy Morgan’s State of the Nation: Australian Retail report, consumer spending increased by 5 per cent compared to the previous financial year. Overall, Australian customers spent over $100 billion on goods in the year ending June 2015.
Australian customers spent over $100 billion on goods in 2015
In terms of demographics, spending among mid-life and older couples outpaced younger demographics. This was due to a higher amount of disposable income post-Global Financial Crisis which meant this group were more willing and able to purchase luxury products. Using tools such as business intelligence software can be useful in identifying consumer segments as they emerge.
Both of these reports also explored aspects of ecommerce and how this will contribute to the overall customer offering.
Ecommerce continues to grow
In 2015, Roy Morgan found that consumer spending online totaled $37.8 billion, a rise of 9.7 per cent from the previous year. Out of all the purchases made online, 72 per cent were from Australian companies.
Recent figure from the National Australia Bank Group (NAB) supported the positive outlook, as online spending expanded by 1.1 per cent in the September quarter, when adjusted for seasonality. New measures may spur future growth in this channel.
Australian Post recently announced an initiative to offer $20 million in funding to support ecommerce businesses. This will be open to emerging firms to help build a more effective platform for Australian Post.
In order to best wp-contenteal to customers, Roy Morgan CEO Michele Levine explained that businesses must be active on multiple channels.
“Consumers don’t care about the battle between online and traditional bricks-and-mortar stores for them, it’s all ‘shopping’. They research products online before visiting the store, or they touch, test and try on in-store before buying online,” she said.
“Our most successful retailers – from niche online-only sellers to national chains to international juggernauts – are those that can supply the demand from all angles.”
Utilising online retail management software is a good start in building a platform for your business on the internet. Maintaining both your physical and digital presence will become key to success in the modern world of retail.