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Thursday, December 9, 2010

Consumers rejoice – it’s the dawn of a new era! Yours.

I just finished reading an Editorial: Ludicrous Myer statement ignores online retail facts by Grant Arnott @powerretail and while it’s infuriating to hear that big retailers such as Myer, Harvey Norman and DJ’s still don’t get the online channel, I think it’s the best thing ever, for consumers.


Whether these retailers really are just trying to lobby the government to impose GST on consumer online purchases from overseas or whether they really think building websites in China is the answer … in the mean time, transactions are happening, consumers are searching and new business is booming. J.C. Penney's online sales increased 12 percent from a year ago with strong traffic even on Thanksgiving Day. Total company November sales increased 7.2 percent to $1.85 billion.

Consumers have a choice and they are choosing with their wallets, they are choosing with their time and they choosing with what they feel is value for their hard earned money. No longer is the consumer at the perils of the haphazard customer service, department store retailers have traditionally given us. (I can’t tell you the number of times I’ve walked into a Myer store and seriously walked around for 20mins trying to find someone to hand my money over to … I know, I know, I’m a glutton for punishment).

Consumers are Googling, Facebooking and Tweeting and searching for products and services that fulfil their desires, wherever in the world that product can be sourced from. Per Grant’s editorial, in a survey of online shoppers conducted by The Leading Edge and recently presented with PayPal, “The main factor influencing shopping online on overseas websites was ‘Access to Goods and Services Not Available in Australia’ (32%)”. It’s an exciting time for consumers; the internet truly has made the world our oyster.

These retailers obviously do not see we are at a crux of a new way of doing business. How much money do overseas retailers have to make in running multi-channel business models before Australian majors understand the change in consumer behaviour. How many more graphs and statistics do research companies have to show them until they believe. What year will they eventually get ‘it’? ... I will make a prediction … they will get it in the year ‘too late’!

Go ahead create your websites in China and give your customers a 10% discount because there is no GST. Give it a good go, but you better come ready and you better back it up with good customer experience. I have one question though, why, if you are loosing business to overseas websites, would you see the solution to be to attack the very people you want to come back to your business? It makes no sense to persecute consumers with imposing GST on them. No matter what rules or extra charges you impose, someone out there will always find a way around it and they will share it with the world. Business is changing, shopping is global now, the internet gives consumers choice, you can not take that away from them. Instead give them a reason to come back to you, give them an experience they will be so delighted with, they will rave about you and tell their 250 friends on Facebook.

The answer is really so simple; Myer’s, DJ’s, Harvey Norman …. just ask your customer what they want. They have been buying from you for years, they liked your offering at one stage but you obviously stopped listening to them. Your customers will be more than happy to tell you. The information you get from them is your gold.

I don’t hear Woolworths (including, BIG W, Dick Smiths) complaining about Australians purchasing overseas and wanting to impose GST on consumers. I see them stepping up to the plate and saying ‘Batter up, let’s do this!’. They are taking their online and multichannel offerings seriously and trying to meet their customers’ evolving needs.

I am so excited for entrepreneurs (like me) and small businesses who actually care about their customers and want to give them a great experience. It is our turn to dominate. I can’t wait to see the creative ideas and unique products the new business community will come up with for their customers.

Consumers rejoice – it’s the dawn of a new era!

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