Online opportunities for bricks and mortar retailers

In its National Digital Economy Strategy, the Australian Government recognised that driving greater digital engagement requires efforts by government, industry and the community. The Strategy highlighted industry initiatives that are contributing to the Government’s vision that Australia become a leading global digital economy by 2020, including the ‘Engage E-tail’ seminar series organised by the Australian Retailers Association and the Australian Sporting Goods Association (ASGA). We invited Brad Kitschke from the ASGA to give us some insights into the thinking behind the seminars.



- Mia, DBCDE

Guest blog post by Brad Kitschke from the Australian Sporting Goods Association

The recent debate about changes in consumer behaviour and an increase in online retail have caused retailers to worry about their future. Rightly, many retailers are concerned that the current regulatory environment they find themselves in places them at an economic disadvantage to their overseas counterparts.

But, whatever the regulatory environment and whether changes occur or not, there is no question that retailers must embrace the online retail landscape and must listen to consumers.

The change in consumer behaviour toward online purchasing is a function of many things not just the high Australian dollar or the advantage given to offshore online retailers through tax breaks.

The reality is that the shift in online retail marks a change in the market driven by a change in consumer demand. Retailers and those who represent their interests need to recognise that the internet is not the enemy but is just another new market opportunity.

As an industry association representative I have been asked by some in the sector ‘what I am doing to stop the spread of internet shopping’, and the answer simply is nothing. I will fight for fair regulation and a tax natural environment where all imports, whether they be from an individual or business are treated the same, but holding back the tide of consumer demand for online shopping is neither something within my power, nor a sensible response.

If we set aside the arguments about tax and regulation, more consumers purchasing products online should be viewed by retailers as just another consumer driven market change. If consumers are demanding a new or different way of shopping and it is within the scope and ability of retailers to provide that channel to market, then those who do will prosper and those who don’t will find their business under threat.

The future of retail in Australia isn’t opposition to market change and consumer demand. The future of retail in Australia has to be about recognising that a multi channel approach with bricks and mortar, online and mobile retail servicing a diverse consumer base is how the market will be constructed.

Online retail doesn’t mean the end of the bricks and mortar store. Consumers will always require service and assistance, trying items out or on, and some will enjoy the social experience of shopping. Others who are time poor or who want to trade-in service for price will head online. The ability of retailers to meet the needs of all consumers through a multi channel approach will define retail success over the coming years.

The release of the Government’s National Digital Economy Strategy and the roll out of the National Broadband Network could not have come at a better time for retail. As retail business heads online the ability to plug into a superior network and conduct business faster and more easily online will bring significant benefit to Australian retailers and consumers.

If you are a retailer and looking to take advantage of new market opportunities or want to gain access to the latest research and information about online trends then you can attend an Engage in E-tail Seminar run by the Australian Sporting Goods Association and the Australian Retailers Association – details can be found here http://www.asga.com.au/get-program

- Brad Kitschke, Australian Sporting Goods Association