20 Be: Online Clicks vs Bricks li C i We’ ’ve seen it with books and techno gadgets and now fashion stores are feeling the pressure from online shopping. Aussies are buying more and more online, shaking traditional bricks and mortar stores to their core and making them rethink khow they do business, s, writes Priscilla Crighton. ISSUE 13
21 For those of you who enjoy the hustle and bustle of shopping centres, take comfort from seeing, smelling and tasting your purchase, and if your wishlist is still a handwritten note stuck on the refrigerator, you are living in unfamiliar times. Online shopping is gaining in popularity with everything from groceries to sports cars available via the click of a button. It may not be as instant as an over-the-counter purchase, but for those who can wait for the post or courier to arrive, there are definitely benefits for the hip pocket. Findings from the 2011 World Internet Project show that a quarter of Australians are buying online at least once a week, compared to 17% of Americans, and a further 53 per cent are buying something over the Internet at least once a month. Senior Research Fellow with the ARC Centre of Excellence for Creative Industries and Innovation (CCI) Scott Ewing says this doesn’t mean that Aussies are necessarily spending more online than in retail shops, but it’s clearly a trend in consumer behaviour. CQ<strong>University</strong> expert in consumer behaviour Dr En Li says while it’s clear online stores are meeting the needs of many shoppers, traditional bricks and mortar stores who sell products that rely heavily on sensations – the need to smell, taste or touch the products – will still fare well. “The context of online shopping typically only provides shoppers visual aspects of products, while ignoring or not able to provide stimulations on other sensory systems.” Dr Li also warns that online shopping can be highly distracting for some shoppers as many people try to multi-task while shopping. “What we’re seeing is that people are contending with moving banners, pop-up videos and are also trying to check Facebook and their email while shopping. According to recent studies, interruptions in decision making could drive consumers to focus on products’ desirability rather than feasibility, causing people to purchase products that they didn’t really want or at prices exceeding their budget.” Sometimes regarded as the birthplace of online shopping, eBay has become a household name and continues to be listed amongst Australia’s most visited online stores with an increasing number of shoppers using its <strong>mobile</strong> phone app to research and purchase products. eBay Vice President Deborah Sharkey says smart phone technology is making consumers savvier than ever. “Retail purchases have been assumed to sit in one of two camps, offline or online, but this distinction no longer exists. With portable shop windows sitting in consumers’ pockets, Australians are more empowered than ever before to research products and get the best possible price before completing their transaction.” According to a recent eBay report, an item is purchased every four seconds in Australia via an eBay <strong>mobile</strong> phone app with a whopping 1.3 million Australians using their <strong>mobile</strong> phones to research and purchase items in 2011. Phones were used to purchase fashion, technology and home and garden products, but the most expensive item bought on a phone in 2011 was a Mercedes-Benz convertible which sold for $50,989. Traditional retail outlets are feeling the pinch as their prices are being undercut from a growing contingent of online stores both here in Australia and overseas. Just one of the recent victims of this phenomenon is Speciality Fashion Group, the owner of ladies fashion outlets Katies and Millers. The company plans to axe 120 of its outlets over the next three years and take more of its business online. CEO Gary Perlstein says it’s all part of plan to ensure long-term growth. While companies struggle with solutions to regain their customers, online stores and shoppers are laughing all the way to the bank. It’s inevitable that traditional retailers will need to find ways to compete either with price or service, or both. More at Be Extras: www.be.cqu.edu.au TIPS FOR SAVING MONEY ONLINE FACEBOOK – LIKE THIS PAGE When you ‘Like’ a retailer’s Facebook page you can simply watch for bargains and discounts to appear in the status updates. TWITTER – FOLLOW THE LEADERS Follow your favourite retailer on Twitter and wait for the bargains to come to your Twitter feed. INBOX BARGAINS Subscribe to newsletter emails from your favourite stores. Be warned – you might want to set up a separate email address to receive these emails in case of email overload. SPECIAL CATEGORIES Look out for clearance, over-stocked and reconditioned categories at your favourite online stores. COMPARISON SHOPPING Seek out a comparison website like shopping.com to find the best price on the product you want, but make sure you still purchase from a reputable outlet. COUPONS AND VOUCHERS Some websites specialise in finding retailers who are currently offering coupon deals. Previously only available on the back of supermarket dockets, now there is a huge Internet market for this. GOOGLE IT Before you commit to buy anything online, make sure you do your research about the product and the online store. Search for product reviews and customer satisfaction feedback. (Source: www.onlineshoppingaustralia.com.au) ISSUE 13
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