An article over at The Age (http://www.theage.com.au/business/harvey-norman-caught-in-a-web-of-competition-20110830-1
jk7b.html) caught my eye, which discussed the increasing trend towards online shopping in Australia, and the resulting decline in retail shopping. Retail giants, such as Gerry Harvey's Harvey Norman, have been basically pleading with Australians to return to shopping at home, instead of overseas. Gerry Harvey has recently been quoted as stating that Australians should be happy and spend "as happy as pigs in shit" with low unemployment and a resources boom.
(http://mizwhiz.com/wp-content/uploads/amazon-online-shopping.jpg)
It is generally accepted that recent shifts in consumer buying habits have formed due to a number of factors, namely the Australian Dollar being at parity with the US Dollar, an increase in the cost of living here in Australia, and the ever increasing adoption of technology. This has lead to 'mainstream' Australian consumers beginning to seek to purchase a considerable amount of goods online, which, as we know, generally provides a greater variety of products at a cheaper price, in comparison to what we'd find in shops here at home.
I believe Australian retailers need to really focus on providing a decent offer with their online shopping offerings. Most major Australian retailers, such as Target, Harvey Norman, Kmart, Big W, Myer and David Jones offer an online shopping portal, however it is usually extremely limited, offering a small selection of products in comparison to what is available in store. JB Hifi and EB Games are just two of the select few major Australian retailers who actually offer the full range of their products to purchase on their website.
(http://www.harveynormanbigbuys.com.au/Images/logo.png)
Australians have shown their thirst for bargains, with the extreme popularity of Australian based sites such as Catchoftheday, Scoopon and LivingSocial. Retailer Harvey Norman has tried to catch onto this trend, with its own website Harvey Norman Big Buys. All of these websites generally offer a different 'deal' or range of products every day at bargain prices.
It seems that the successes with regards to online shopping are being dealt to organisations with a fully integrated and expansive online shopping experience, offering a range of products at a low price, as well as often providing full mobile and social media integration. This includes overseas clothing retailers such as Asos, who have become almost household names to Australians (without actually having a physical presence in the country) seeking to take advantage of the strong Australian Dollar.
Do Australian retailers still have something to learn with regards to this change in consumer buying habits? Should they be learning from their overseas counterparts? Or is it better for retailers to try and improve their physical retail offering to try and win consumers back?
Personally I believe Australian retailers should aim to improve their online offering, as the continually increasing popularity of online shopping is only going to continue. Despite some arguing that Australian retailers will never have a place on the internet which some American and European giants already occupy, I believe that Australians do prefer to purchase products from home, and there is a market for Australian retailers overseas. The main issue is the case of pricing and product variety, which is absolutely key to a successful online shopping operation, and should be paid close attention to by retailers.