<![CDATA[My blog]]> http://www.dairubicon.com/news Sat, 25 Mar 2017 03:49:40 GMT Sat, 25 Mar 2017 03:49:40 GMT LemonStand <![CDATA[ecommerce Conference & Expo]]> http://www.dairubicon.com/news/postecommerce-conference-and-expo http://www.dairubicon.com/news/postecommerce-conference-and-expo Tue, 18 Mar 2014 00:00:00 GMT http://www.ecomexpomelbourne.com.au/

Posted in: News

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<![CDATA[Case Study Test]]> http://www.dairubicon.com/news/postcase-study-test http://www.dairubicon.com/news/postcase-study-test Wed, 27 Nov 2013 00:00:00 GMT After decades spent selling their over-priced clothes in relative isolation, Australian retailers have suddenly found themselves in the midst of an international fashion invasion.

A recent report by Colliers International found 28 international retailers would establish 235 new stores and look for 220,000 square metres of Australian retail space within the next five years.

Swedish retailer H&M and Japan's Uniqlo are among the big-name internationals that will open stores in the next 12 months. Fellow Japanese retailer Muji opened its first Australian store at Chadstone on Tuesday while, Zara, Topshop and Gap are rapidly gaining a strong foothold here.

The fashion incursion has come on several fronts – from overseas fast fashion chains setting up bricks and mortar stores in our largest cities and from the hundreds of international retailers selling to Australian consumers online.

The catalyst for both, however, has been the internet. When British-based e-tailer Asos started selling their cheap on-trend clothing to Australian consumers several years ago it quickly realised it had struck gold.

An analysis of their online orders clearly showed Australia was it's second biggest market outside of their home turf.

A similar story has been retold by dozens of international retailers since – Topshop, Net-a-Porter and Neiman Marcus all list Australia among their biggest overseas markets.

Some, including Topshop, Zara and Gap – and there are plenty more to come – have jumped on the opportunity by opening flagship stores in prime locations throughout our capital cities.

Others have invested heavily in marketing and selling their wares to Australians through their virtual stores – by setting up Australian-based warehouses, designing Australia-specific collections, employing local public relations agents and by advertising aggressively directly to Australian consumers.

In the past month, for example, American department store Neiman Marcus, who does not have one single store in this country, has placed advertisements in prime advertising space including the front page of The Age newspaper .

These retail juggernauts have discovered – purely by chance, or more specifically, by the internationalisation of their online stores – that there is a market on the other side of globe that had, until now, been under-serviced and underwhelmed when it came to fashion choice – particularly of the affordable variety.

We cannot blame Australia's clothing retailers for the lack of choice. There are only so many fashion labels that can make a living out of dressing 23 million people. We also can't blame them entirely for prices that – even with increased competition from international brands – remain uncompetitive.

The volumes produced by the likes of Zara, H&M and Topshop to service a global market means it is impossible for Sportsgirl or Witchery or Cue who produce volumes for a much smaller market to compete on price.

However, there is no question that a lack of competition has meant many retailers have been able to keep prices higher for a long period of time.

Early last year, Fairfax Media reported several examples of local fashion importers reaching agreements with international brands to stop selling their clothes to Australians on overseas websites or to lift their web prices for Australian consumers, so local stores could continue selling the clothes at inflated prices.

On the face of it, Australian consumers will be the big winners of the opening up of the global fashion market. Or will they?

Already, increased competition from overseas has claimed several fashion victims.

In the past week, it has been revealed that two of Australia's best known fashion designers – Bettina Liano and Kit Willow – have been forced to walk away from the fashion labels that bear their name. These come on the back of a string of other famous fashion departures in recent months, including Lisa Ho, Collette Dinnigan, Alannah Hill and Kirrily Johnston.

The exodus of half a dozen of Australia's most talented designers in the space of a few months has been the result of a variety of factors. However, there is no denying that increased international competition has exposed the weakest of these fashion businesses – including Lisa Ho, Kirrily Johnston and Bettina Liano.

In instances, where designers have been forced out by their owners – including Kit Willow and Alannah Hill – we can only imagine there have been tensions in those relationships, some of which will have undoubtedly been exacerbated by an increasing need for owners to put profits first, in a retail environment where marketshare is being increasingly eroded by overseas players.

While Australian consumers might now have greater access to affordable, fast fashion there is a risk that as overseas retailers inevitably cannablise our Australian talent that our fashion choice will become increasingly homogenised.

Only time will tell if our homegrown independent talent is in fact talented enough to continue to innovate to protect its marketshare and its signature style.

Posted in: Case Studies

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<![CDATA[Global e-commerce tops $1 trillion in 2012]]> http://www.dairubicon.com/news/postglobal-ecommerce-tops-1billion http://www.dairubicon.com/news/postglobal-ecommerce-tops-1billion Wed, 27 Nov 2013 00:00:00 GMT DAI Post noticed an internesting article on emarketer in February this year regarding the size of the global e-commerce market. Digital marketing research firm eMarketer claims that global e-commerce sales reached $1.08875 trillion in 2012, up 21.9% from $893.33 billion in 2011. It wasn't surprising to any of our team that North America continued to hold a majority share of those sales, however eMarketer claim that this year Asia-Pacific will take the lead.

Interestingly, they also forecast that in 2013, total e-commerce sales worldwide will grow over 19% year over year to reach a whopping $1.29844 trillion. eMarketer define online sales as including retail, travel and digital download sales and online marketplace transactions.

Here is a regional breakdown of worldwide online sales share in 2012 and 2013, according to eMarketer:

  • North America, 33.5%, 31.5%;
  • Asia-Pacific, 30.5%, 33.4%;
  • Western Europe, 26.9%, 25.7%;
  • Eastern Europe, 3.8%, 3.9%;
  • Latin America, 3.4%, 3.5%;
  • Middle East and Africa, 1.9%, 2.1%.

And while Australia might be a long where from anywhere (sorry New Zealand!), we again punch above our weight when you look at the top five countries ranked by average e-commerce sales per online shopper. Again looking at 2012 and the projected 2013 averages:

  • United Kingdom, $3,585, $3,878;
  • Australia, $3,547, $3,802;
  • Norway, $2,530, $2,796;
  • United States, $2,293, $2,466;
  • Denmark, $2,185, $2,286.

For the full article visit the emarketer website.

Posted in: News

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<![CDATA[A ‘solid start’ to the online holiday shopping season]]> http://www.dairubicon.com/news/posta-solid-start-to-the-holiday-shopping-season http://www.dairubicon.com/news/posta-solid-start-to-the-holiday-shopping-season Wed, 27 Nov 2013 00:00:00 GMT Confronting an odd holiday calendar, shoppers aren’t waiting for the post-Thanksgiving sales to begin their gift buying.

Just counting purchases made from desktop and laptop computers, online retail sales were up 14% from Nov. 1-24 compared with the same period last year, comScore Inc. reported today. IBM Corp. reports that weekend online sales were up 19%, and online marketing firm ChannelAdvisor Corp. says its clients’ weekend sales were 30% higher than over the pre-Thanksgiving weekend in 2012.

“The 2013 online holiday shopping season is off to a solid start,” says Andrew Lipsman, comScore vice president of marketing and insights.

All the shopping channels ChannelAdvisor tracks—including its retailer clients’ sales on the Amazon and eBay marketplaces, and from search engines and comparison shopping engines—showed at least double-digit growth over the weekend before Thanksgiving last year. “This bodes well, as retailers need the consumer open their wallet earlier this year to help make up for the lost six days of holiday 2013,” says ChannelAdvisor CEO Scot Wingo.

Wingo is referring to Thanksgiving this year falling on its latest possible date, Nov. 28, after falling on its earliest date, Nov. 22, in 2012. That cuts six shopping days, and a full weekend, from the prime Thanksgiving-to-Christmas shopping period. Further skewing holiday results is the fact that Hanukkah starts tomorrow evening, just before Thanksgiving, an early date that’s nearly unprecedented.

In its report today, comScore says U.S. consumers using PCs bought $18.912 billion from Nov. 1-24 on retail web sites, up 14% from $16.562 billion during the same period last year. ComScore tracks mobile sales separately. The company projects a 14.1% increase in desktop e-retail purchases to $48.1 billion during November and December this year over last year. In addition, comScore expects consumers buying on smartphones and tablets to spend $7.1 billion, representing 13% of total digital commerce. Total spending across digital channels is expected to be $55.2 billion for the season.

"While the early part of the online holiday shopping season has been solid so far, we are tempering our expectations given the shortened 26-day shopping period between Thanksgiving and Christmas this year," Lipsman says. "In addition, with Hannukah beginning in November this year there is some spending that has been pulled forward and likely added a boost to the early November shopping period. That said, our forecast of 14% growth for desktop-based buying still represents a strong outlook versus last year that highlights the continued channel shift to online. We also expect m-commerce spending growth to contribute about 2 percentage points to that growth rate, meaning that total digital commerce will grow at a rate of nearly 16%."

In its report, IBM said department stores’ online sales grew nearly 72% over last year, and the health and beauty category grew 41%.

Mobile devices represented nearly 37% of online traffic and 18% of sales, IBM says.

On Monday, IBM says, sales growth fell to 12% over last year. Mobile devices accounted for nearly 32% of traffic, 20% from smartphones and 11% from tablets. 13% of purchases were on mobile devices. Of those, 9% were made on tablets and 4.6% on mobile phones. Apple-branded phones and tablets accounted for 11.06% of purchases, more than four times the 2.5% from Android devices.

ChannelAdvisor says its clients’ sales through Amazon increased 43.2% this weekend over the same weekend last year, on eBay 31.6%, through comparison shopping engines 19.6% and paid search marketing 11.5%. In addition, their sales more than doubled, growing 110.6%, through Google Product Listing Ads, an ad format Google launched in the fall of 2012.

In another sign that consumers are avidly shopping for deals, Akamai Technologies' Net Usage Index, which measures traffic to web sites around the world, was showing this afternoon an average of 4.7 million page views per minute by North American consumers to retail web sites. Akamai says that's about 35% higher than on the Tuesday before Thanksgiving last year.

Posted in: News

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<![CDATA[case study 2]]> http://www.dairubicon.com/news/postcase-study-2 http://www.dairubicon.com/news/postcase-study-2 Wed, 27 Nov 2013 00:00:00 GMT For consumers, one of the great things about shopping online is bypassing the queue to check out. For producers of the candy, magazines and drinks often sold there, it's a problem.

In Britain, the country where e-commerce is most popular, about 13 percent of people do all or most of their grocery shopping online. Yet this only accounts for 5 percent of overall spending, suggesting consumers spend more when they visit a store.

That is because online shoppers search for what they need, usually sticking close to their shopping lists. They don't spontaneously buy magazines they opened while waiting to pay, or chocolate to eat on the go.

Elizabeth Clark, a 40-year-old teacher in Liverpool, England now does most of her shops on the internet, and says she ends up buying fewer sweets, newspapers, toys and wine.

"In the supermarket, obviously you walk past it and you see a special offer and you think 'Oh, I'll have that'," she said.

Even though retailers try to do the same thing by flagging special offers at online check-out, it doesn't usually work.

"I always just press 'next, next, next, next' without even reading them, deliberately, because I don't want to be tempted."

Companies most at risk are Mondelez International, Mars Inc and Nestle, the top three candy makers, soda makers like Coca-Cola and PepsiCo, and magazine publishers like Time Warner and Hearst Corp.

The latest survey of European shoppers by IRI found that 73 percent spent more time planning shopping in order to avoid non-essential purchases amid the economic slowdown.

"Shoppers are reducing their impulse purchasing," said Cristina Lazzaroni, who monitors the confectionary market for IRI in Italy, where online shopping is less of a habit.

And when they do buy chocolate at stores, more Italian shoppers are buying larger take-home tablets instead of single-serve snacks, Lazzaroni said, noting that the shift can hurt the bottom line as smaller packages often carry higher margins. IRI said sales of confectionary fell 2.4 percent in Italy in the last year.

Worldwide, the retail confectionery market is worth $196.5 billion, according to Euromonitor International, up 5.6 percent from a year ago. Nearly all sales are from stores, though online made up 0.9 percent this year, up from 0.6 percent in 2008. That is the same amount as purchased through vending machines.

CANDY LAG

Grocery is one of the last areas of retail to go online, due to challenges around delivery and perishability, but a shift is underway. Amazon.com is expanding its grocery business in the United States and abroad, and traditional grocers are boosting their own digital capabilities as well.

In the United States, Bernstein Research estimates that about one quarter of spending on consumer goods -- some $222 billion a year -- will ultimately be spent online.

Not surprisingly, nonperishables enjoy the most online purchasing, with skin care products deriving 12.2 percent of sales online, Bernstein found, way ahead of the 2.4 percent average. Confectionary and biscuits were at less than 1 percent.

Of Britain's 7 million online grocery shoppers, only 12 percent visit a confectionery-related webpage, and just half of those actually buy anything there, according to Kantar Media.

When asked about efforts to lift sales online or at check-out, Hershey and Mars did not offer examples or make anyone available to discuss. Hershey said its sales have grown at a rate above the industry average for the past several years.

A Nestle spokeswoman said: "The online channel represents an opportunity for confectionery. It is an important channel for us and we are experiencing much success. The path to purchase for confectionery is nonetheless different online versus traditional channels."

Online grocery sales will roughly double on average by 2016 in five key European markets - Britain, France, Germany, Switzerland and the Netherlands - the food and consumer goods research group IGD predicts.

That is prompting many retailers to invest in convenience store formats, where shoppers can top up online orders with fresh goods, instead of trekking to large out-of-town supermarkets. They are also building collection points for goods bought online, which is an area where more impulse buys could happen in future.

"This is going to become more and more a magic moment when retailers need to take advantage of having their customer in a buying mode," said John Sheldon, global head of strategy at consultants eBay Enterprise.

TECHNICAL REVOLUTION

While the bulk of grocery shopping looks set to remain in stores, technology is also putting impulse buys at risk there.

Retailers are looking for ways to make payments easier for their customers, either by allowing them to check out their goods on the go on their smartphones or by introducing faster tills, for example by scanning whole baskets.

"The check out is still complex, costly, not terribly consumer friendly," said Simon Hay, chief executive of Dunnhumby, the customer science company owned by the world's third biggest retailer Tesco.

"The biggest value is getting the return shopping trip," he said, noting that items potentially lost at check-out were small and incremental from the retailer's perspective.

The growth of mobile shopping, either in store or on the go, is also a threat, especially as small screens limit the opportunity to try to tempt shoppers with impulse buys.

Mobile transaction volume and value will average 35 percent annual growth between 2012 and 2017, according to Capgemini.

But smartphones also provide new opportunities for location-based promotions that are already driving sales.

Mondelez International, maker of Cadbury chocolate, has committed to investing 10 percent of its global marketing budget, which was $1.8 billion in 2012, in mobile projects.

In one test, its Stride chewing gum teamed up with Google's traffic and navigation app, Waze, to send mobile Stride coupons for retailers near consumers' locations.

Another test, using in-store sensors, tries to turn browsers into buyers by delivering audio or video content to smartphones based on a shopper's gender and approximate age, what products they're looking at, how long they dwell and the time of day.

Anthony Hopper, chief executive of advertising agency Lowe Open, said brands need to change how people buy chocolate, but acknowledges that it won't be easy.

"If you're somebody who on average buys one bar of Cadbury Dairy Milk on impulse once a week, can I encourage you that it's actually better value to buy a pack of four when you're doing your next online shop? It's a long-term strategy," he said.

Posted in: Case Studies

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<![CDATA[Case study 3]]> http://www.dairubicon.com/news/postcase-study-3 http://www.dairubicon.com/news/postcase-study-3 Wed, 27 Nov 2013 00:00:00 GMT

The decision to lower the GST-threshold on imported goods worth less than $1000 has been pushed back until March next year.

That means Christmas presents bought online this year from overseas will not be subject to the tax.

I don’t expect to win a popularity contest on the back of this, [but] it is fair for our local retailers. 

Mike Baird, NSW Treasurer

State treasurers met Federal Treasurer Joe Hockey in Canberra on Wednesday to discuss lowering the threshold.

In recent weeks, Australian retailers and state premiers have increased calls for the threshold to be lowered significantly below the current $1000 threshold or abandoned altogether, saying it gives foreign retailers an unfair advantage over local retailers.

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Mike Baird, NSW Treasurer, said on Wednesday that there was no final decision on how much the GST-threshold ought to be lowered.

He also said there were "various scenarios" presented to the treasurers showing that in the first "year or two" the cost of running the program would be higher than the revenue it generates.

However, those costs will apparently fall with each year that the program continues.

"The business case ... is very close to being finalised," Mr Baird said. "It is clear that there was a lot of consensus across the room that we need to do this."

However, Mr Baird admitted his support for the policy would not be popular.

“I don’t expect to win a popularity contest on the back of this, [but] it is fair for our local retailers," he said. "The tax system needs to be brought into the modern age and we’re prepared to argue for it.

The National Retail Association wants shoppers to be charged GST on overseas purchases worth more than $20.

Chief executive Trevor Evans said earlier this week that the current GST-free threshold of $1000 a parcel was introduced before online shopping became widespread.

“The plain fact is that GST was always supposed to apply to the types of consumer products that people are now regularly purchasing online,” he said.

Posted in: Case Studies

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