Is The Traditional Retail Model Dead in Australia?
If you are one of the many thousands of retail business owners in Australia who are just holding it together and wondering what to do next, please read on. Many of our clients have invested their time, money and energy over the last few years in mastering many of the new forms of media out there, Facebook, Internet, Linked In etc etc just to name a few, and whilst these mediums do assist, why are our clients continuing to increase their spending on foreign websites.
Don’t they like coming into our store, Don’t they like the wonderful service we offer, Don’t they appreciate the effort we have put into our stores, staff, training and marketing?
Sadly, the Simple answer is No.
Your clients regardless of how you nurture them, if given the opportunity of saving in many cases almost 50% off your price will purchase online.
So What Can We Do?
In Australia, we have been conditioned to deal with local suppliers, always prepared to pay their price as we genuinely believed we needed their support. If your clients are not prepared to pay a premium for this, why should you? As retailers, I am also one, we need to start sourcing our product at the best pricing possible, and then pass this onto our clients. If this means bypassing local agents and dealing direct with the manufacturer, or whoever can legitimately supply these goods, then do it.
Sure you will receive some flak from the distributors, but what would you prefer, going broke, I’ve been there and can you tell you it is not a nice place to be.
The Internet today has created a truly global market, if your clients can source your product significantly cheaper overseas, then why can’t you?
So get onto it, start communicating with your manufacturers, they want your business and in the end they will come around, because if they don’t, they to will become victims of our Truly Global Retail Environment.