Mobile devices are a key enabler to growth in online shopping
The research also indicates that mobile device usage is gradually shifting across a broader range of age groups, with the primary shopping activities being ‘finding a nearby store’ (50 per cent) and comparing prices while shopping in store (36 per cent).
Shopping on a tablet device is still in its infancy; however there has been a notable rate of uptake in 2012 compared to 2011. This will continue to grow over the next 12 months as a greater range of tablet devices come onto the market with lower prices.
Online delivery service improves
Although delivery has represented a significant barrier for the uptake of online shopping, recent improvements in local delivery service is also instilling greater confidence amongst consumers. This has been driven by the major logistics providers investing in infrastructure and improving their online shopping delivery processes. Australia Post has also made significant progress in improving its processes, investing in infrastructure and has announced plans to rollout 30 superstores across the nation that will offer vending machines, parcel lockers and self-service terminals.
Advancements in technology, such as high resolution imagery, video content, detailed descriptions, product recommendations and reviews are also bridging the gap between shopping online and the in-store experience.
The future
With online retailing now a mainstream sales channel, new competitors entering the market, pure plays expanding their offer and consumers putting increasing pressure on local retailers to provide an increasing competitive multi channel offer to match offshore retailers, the traditional retail operating model is now at a critical junction.
Many of Australia’s retailers have now commenced the online journey with new strategies and major investment in supporting technology, infrastructure and teams. However the consumer is continually changing, adopting new devices, and engaging with them is increasingly complex. Technology is also continuing to evolve at a rapid rate from both a consumer and retail perspective.
The only constant is the rate of change and the ever increasing level of change. Retailers are going to have to adapt the current retail operating model if they are going to meet the demands and engage with consumers.
The raft of new competitors are bringing new value propositions, whether they are pure plays, manufacturers, or other global retailers entering the Australian market. Consumers have shown they are more than happy to embrace these new offers.
Australian retailers need to not only embrace and invest now in online shopping but they need to understand, plan and invest in developing a new retail operating model.
In the future we are likely to see a new retail model which we have labelled ‘Consumer Adaptive Retailing’, which may well supersede traditional approaches. This new model will evolve the marketplace to meet the needs of the increasingly sophisticated consumer and to accommodate the rapid development of technologies.