Ebeltoft Presentation September 2009 Abridged
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Transcript of Ebeltoft Presentation September 2009 Abridged
12TH LATIN AMERICA RETAIL FORUM – AUSTRALIAN OUTLOOK
The Retail Doctor® Group Pty Ltdwww.retaildoctor.com.au
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We are pleased to introduce to you our 2009 Retail Thought Leadership
report
Retail is a dynamic and diverse sector
Given the recent turbulence in the global economy, this thought-
leadership research investigated the future of the retail industry in
Australia and New Zealand
Primary interview data and secondary publication data were combined to
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© Copyright 2009. The Retail Doctor® Group Pty Ltd
Primary interview data and secondary publication data were combined to
explore the key trends impacting the retail industry now and in the lead
up to 2020
The results provide insight to retailers to navigate the current economic
downturn and in prepare for major trends likely to impact the retail
industry over the next decade
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Overview of findings - Short Term
There are growth opportunities for retailers during times of an economic
downturn
The retail environment is currently in a fragile position and may appear
substantially different in coming years
Retail consolidation will continue in the short term
Retailers must know their customer
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Retailers must know their customer
Shift toward greater customer value
Need for retailers to offer something different
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Overview of Findings Long Term
There are a number of trends likely to develop and impact the retail sector.
Continued trans-Tasman retail trend - retailers increasingly moving
between Australia and New Zealand.
Differentiation, particularly through premium services will shape the retail
environment in 2020
We will see a very different consumer – one who co-creates, and seeks
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We will see a very different consumer – one who co-creates, and seeks
personalised products and services
Virtual networks will link consumers and technology will change the way in
which consumers communicate with each other and retailers.
Consumer intelligence is key for the 2020 retailer
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Key Finding
One theme was consistent amongst all interviewees -
there is a need to ensure that retailer connect with what the
customer wants, and not rely on mere volume sales via high traffic
levels
Retailers are going to have to make sure they connect and remain
relevant with consumers
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relevant with consumers
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Why the Future of Retail?
Understanding potential future trends is a critical issue for retailers
therefore this an important topic on our agenda
Providing strategic insight as to what lies ahead for retailers in the
Australian and New Zealand markets provides retailers with a solid
foundation to develop effective strategies during the economic downturn
and beyond to 2020
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Background
Retail trade is a significant contributor to the Australian
economy
More than 250,000 retail outlets
Generating more than $220 billion in annual sales
(ABS, 2008; IBISWorld, 2009).
The last 10 years have been economically buoyant fuelling
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The last 10 years have been economically buoyant fuelling
much of retail growth
In late 2008 the retail industry globally was substantially
affected by the Global Financial Crisis (GFC)
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EConsumer Confidence
Australian consumer confidence declined the past 12 months. Largely
attributed to the GFC and:
Consumers concerned about their personal finances
Consumers concerned about the finances of the country.
Confidence hit an all time low in the second half of 2008 (close to the
levels of the 1990/91 recession).
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levels of the 1990/91 recession).
Retailers therefore experienced tough trading
Asset values declined significantly
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Consumer Behaviour
A shifting consumer attitude has been seen
Consumers more careful in their spending and have been ‘cocooning’
The term cocooning was coined during the 1991 recession and characterises
consumers creating comfortable home life environments in order to spend more
leisure time at home
This behaviour has had a negative effect on the sub-sector of ‘café’s,
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restaurants and takeaway foods’ - the only subsector to experience a
decrease in sales from the 2007 to 2008 period, with a decline of 0.4%
(ABS, 2009)
This contrasts to relatively strong growth in food retailing with a 6.1%
increase in sales (ABS, 2009)
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EAustralian Review
Despite the relatively small size of the Australian market globally, the retail
industry has become very competitive in the last decade
Retailers have worked hard to create stimulating shopping environments
Experiential retailing has been a popular element
Many retailers making use of technologies such as digital signage and kiosks
to create excitement in-store.
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to create excitement in-store.
In-store developments such as self-service checkouts have further improved
the retail experience
GO
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DKnow Your Customer
Our research highlights importance of consumer
insight (data collection and analysis)
Demographic
Psychographic
Behavioural
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Consumer trends previously changed slowly
allowing retailers to analyse their implications and
make well-informed decisions
Consumer trends now emerge rapidly due to
technology, accelerated social diffusion, instant
communication, and increased willingness to
accept – or inability to escape – new ideas (Wesely-
Clough, 2006)
Every Australian Shopper is Online
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Implication: are you able to meet these information needs?
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A good on line brand experience is not a separate experience to the
transactional piece
A good on line brand experience = An integrated brand and
transactional experience
A good on line brand experience should correlate with the in store
experience
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On Line Brand Experience
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experience
A good on line brand experience will also address the needs of multi
channel customers and will reinforce the values of the brand
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Green Retail
Field Force Australia takes advantage of
the current interplay between government
and retail
Customers are in a position of power to
place pressure on the supply chain for
environmental benefit.
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Field Force and The Retail Doctor
Brief: To develop a complete new to market national retail channel
showcasing environmental and integrated product suites complementing
Field Force multi channel offer.
Approach: The Retail Doctor developed a Fit for Growth diagnostic™
including full channel planning, broad strategic positioning and all
operational, merchandising and financial planning to underpin a new
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channel to market including a review of all merchandise ranging products
based on strategic positioning, life cycle and profit analysis, new layouts
and plan-o-grams based on best practice retail principles.
Solutions: Economic feasibility based on strategic positioning, initial
ranges merchandise ratios design and all operational systems and
frameworks are completed and on track for the first store to open.
SU
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Successful retailers will
Understand potential problems early
Implement strategic vision
Consider their customer
Examine the complete customer
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experience
Tie customer needs to core products
and differentiators.
For more information and to see how The Retail Doctor can help you become ‘Fit for
Business’ please connect with us.
Facebook: www.facebook.com/retaildoctor
Twitter: www.twitter.com/retaildoctor
LinkedIn: www.linkedin.com/in/brianwalkerretaildoctor
Thankyou for viewing the abridged version of The Retail Doctor’s 12th Annual LatinAmerican Retail Forum Presentation.
THE RETAIL DOCTOR® GROUP PTY LTD
© Copyright 2009. The Retail Doctor® Group Pty Ltd
Mailing AddressPO Box 209Milsons Point NSW 2061
Phone | +61 (0)2 9460 2882Fax | +61 (0)2 9460 3883E-mail | [email protected]: | www.retaildoctor.com.au
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