Daily Bulletin


The Conversation

  • Written by Gary Mortimer, Associate Professor, Queensland University of Technology
image

A recent survey shows that Australians are feeling more time-poor than ever, with 45% of women and 36% of men feeling “always” or “often” rushed, or “pressed for time”. Meanwhile, research has identified that almost one in four shoppers (23%) are willing to pay a premium for “same day” delivery.

In other words, consumers’ expectations are changing. Speed is becoming a point of difference, a new front of competition, between retailers. And many Australian retailers are lagging behind.

When a quarter of your customers are willing to pay a bit extra to have their online purchases delivered that afternoon, it is surprising more retailers are not investing in the “last-mile” – from the warehouse to the customer.

The threat

The advantage physical stores always had over online was immediacy. Walk in, grab it and go. While online retail had an endless range of choice and often lower prices, shoppers had to wait.

But “same day” delivery undermines that, combining the convenience of online shopping with the immediacy of bricks n’ mortar.

New retailers and logistics companies are selling us time and convenience just as much as they are selling products or services. Take Ur-bit, a delivery provider operating in Sweden, Paris and London; shop online and get them to pick up and deliver to your home, office, and even your car.

Many in the US and UK have teamed up with third party providers like Lyft and Uber to achieve a same-day delivery. British supermarket Sainsbury’s has more recently begun trailing an app allowing shoppers to order up to 20 products and have them delivered in an hour.

Meanwhile, Australian supermarkets are still only offering next day delivery, with up to 3 hour delivery windows. Although admittedly, Coles has started trialling same-day delivery in some Melbourne stores.

The opportunity

While Australian retailers are threatened by speed, it is also an incredible opportunity. Australian retailers may not be able to complete against the likes of Amazon on product range and price, but speed may level the playing field.

Australian retailers have struggled with this since they started selling through multiple channels – stores, online and catalogues. In most cases today, Australian retailers are still pushing products to stores from warehouses, unpacking them, only to have those same products re-packaged and forwarded to a customer’s home.

This isn’t very cost effective, and it also doesn’t work in a context where stores are shipping smaller, individual orders directly to customers’ homes.

What Australian retailers should be focusing on is building fulfilment centres, such as The Iconics’ new facility. These are facilities that are located close to customers, making it very quick and easy to deliver to homes and offices. No repacking required.

The construction of such fulfilment centres has become something of an arms race among online retailers, led by Amazon. It’s time for Australian retailers to join in.

But its not just speed that can give an advantage. In the past, delivery was dominated by a few companies, but today there are myriad new players who offer more than speed. They can arrange not only when a product is delivered, but how it arrives in a customer’s hands - with flexible locations and timing.

Customers’ expectations for flexible, fast and cheap same-day delivery is both a threat and an opportunity for Australia’s major retailers. It is currently unclear who will win this race, but retailers must wake up to the demands of customers. Their competitors already have.

Authors: Gary Mortimer, Associate Professor, Queensland University of Technology

Read more http://theconversation.com/aussie-retailers-need-to-adapt-to-a-world-built-on-speed-78184

Writers Wanted

No Barnaby, 2050 isn't far away. Next week's intergenerational report deals with 2061

arrow_forward

Tips For Good SEO In The Law Sector

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Prime Minister interview with Karl Stefanovic and Allison Langdon

Karl Stefanovic: PM, good morning to you. Do you have blood on your hands?   PRIME MINISTER: No, it's obviously absurd. What we're doing here is we've got a temporary pause in place because we'v...

Karl Stefanovic and Allison Langdon - avatar Karl Stefanovic and Allison Langdon

Prime Minister Scott Morrison delivered Keynote Address at AFR Business Summit

Well, thank you all for the opportunity to come and be with you here today. Can I also acknowledge the Gadigal people, the Eora Nation, the elders past and present and future. Can I also acknowled...

Scott Morrison - avatar Scott Morrison

Morrison Government commits record $9B to social security safety net

The Morrison Government is enhancing our social security safety net by increasing support for unemployed Australians while strengthening their obligations to search for work.   From March the ...

Scott Morrison - avatar Scott Morrison

Business News

Victorian businesses can claim a rebate on COVID-19 deep cleans until 30 June - but many remain unaware

With exposure sites on the rise and financial stresses already on most Victorian businesses, the recent Business Victoria announcement of a substantial 80% COVIDSafe Deep cleaning rebate is a time...

Article by Damien Smith, CEO of Prime Group - avatar Article by Damien Smith, CEO of Prime Group

Six Tips to Get your Business Known on Social Media

Social media is one of the most effective ways to market your brand to the masses. With the meteoric rise in popularity of various social media platforms over the past decade, millions of brands h...

NewsServices.com - avatar NewsServices.com

Boom in Aussies buying up restaurants, pubs, hotels and bars in regional centres

With international borders closed, regional Australia is seeing a dramatic surge in popularity as people move out of the cities and into their quaint communities. City slickers are looking for new...

Tess Sanders Lazarus - avatar Tess Sanders Lazarus