By Aimee Chanthadavong
Communications Minister Stephen Conroy has called on Australian retailers to embrace the government’s National Broadband Network (NBN), which he believes is the “part of the solution” to reducing the gap between Australian retailers and its overseas counterparts in online retailing.
“The government strongly believes the digital economy underpins the Australian economic future. Online retail as with many parts of the digital economy is a market led phenomenon,” Conroy said.
“The government is aware of various reports that show Australian online retail is lagging behind its international competitors. We know that 58.5 per cent of Australian small businesses are not online and 72.9 per cent do no offer transactions online. So that means a large percentage of businesses are missing out on what the digital economy can provide.”
Conroy spoke at the federal government-organised online retail forum last Friday that saw Australian retailers and other parts of the supply chain discuss the opportunities and challenges that are currently being faced by the online and offline retail market.
Speakers who joined Conroy at the forum included representatives from Australia Post, eBay Australia, PayPal, Google, Grays Online and DHL.
According to Deb Sharkey, eBay Australia & New Zealand managing director, the internet has already changed the way consumers are shopping and vendors need to meet this retailing evolution.
“The statistics are clear – 10 million Australians are voting with their clicks and are telling us the future is online,” she said.
Jason Pellegrino, Google head of strategy & sales operations in Australia and New Zealand highlighted that the definition between online and offline retailing is becoming obscure, particularly with the increasing use of mobile shopping.
“The Australian consumer no longer sees the online and offline as differentiated channels. They want to interact at a different time and location that suits them. Over 50 per cent of research is done online and then purchase that product in a physical store. And Australian businesses are doing this and they need to deliver offerings on different platforms to meet this,” he said.
“Sites like Dick Smith let’s people buy online and go in-store to pick their purchases. This blurring of channel line is set to continue as businesses meet the fundamental demand.
“From a retailing perspective this online channel is set to increase the efficiency of their offline service.”
Discussion on seamless delivery was also shared by DHL’s Ben Somerville, Temando’s Carl Hartmann and Australia Post’s Mark Crawford, agreeing that they too need to make changes to meet the growth of parcel deliveries.
“The growth in online is so exceptional that nearly over 70 per cent of our business is driven by e-commerce one way or another. It’s extensive and we acknowledge that we need to be apart of by working with our customers and business,” Mark Crawford, Australia Post, general manager product & business development, said.
“It’s about the delivery location; we’ve delivered to their home and their business. But now consumers are asking about delivering it to a convenient location like on their way home.
“Australia Post has a unique position for last mile delivery and we believe e-commerce is the centrepiece of our future growth.”