02 March 2012

Digital Business

Have you wondered just how much computers, websites and social media are affected how we do business? This was a topic for discussion at the Council meeting. While Council response is confidential the startling facts aren't:

Facts about Australian consumers.
• 82% of all Australians looked for information on line
• 66% of all Australians shop on line
• 24% have purchased from overseas online
• Half of all Australians have a smart phone
Facts on Australian Households
• 89% have a computer
• 87 % are internet enabled
• 10 % have a tablet/Ipad with 15% expected to buy in the next year
• 4% have purchases coupons
• Deloittes Study – 5.5% of Australian spending was on line (2010 -2011) which represented 13.6 billion dollars in revenue
• Online sales are growing at 9 to 10% pa
• Consumers ability to search, find and buy is growing.
• Greatest increase in on line activity was 30+
Facts on Australian businesses
• Only 50% are using using it effectively
• Only 6% of Australian businesses intend to install a web site next year.
• 18% of businesses use social media for business, most are on facebook
• 50% who had used social media said it had a positive impact on their business
• 90% maintained social media sites internally
• 50% of business who offered coupons got return business.
So what are the key issues traders face today?
• There is a parallel shift going on with wholesalers now competing with the retailers they are supplying
• interstate and overseas traders are competing in the same market place
• highly informed customers
• reduced relationships and loyalty
• the try and don’t buy culture
• mobile customers
• negative reviews through social media
• rents still increasing
• wholesale competition
• increasing online competition and reduced foot traffic/sales
Retail is not just about foot traffic in store anymore. It’s about a whole new business model.
Position! Position! Is not necessarily number one anymore as traders have the potential to buy in one country and sell in another.

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