Easy internet access and online retail
spaces such as eBay are a threat to some
stores - though retail where the buying
experience is important is likely to thrive.
Image: iStockphoto
Monash University researchers have warned of a boom in online trading and a surge in an "anti-retail movement" that could spell the demise of some retail outlets in the next ten years unless they revolutionise the way they do business.
New research from the Australian Centre for Retail Studies has found that some traditional retailing is likely to be obsolete by the year 2020 as manufacturers choose to sell directly to the public and consumers opt to bypass stores and deal directly with wholesalers or even each other. Consumers may also want input into the design and construction of their purchase.
The research predicts the industries most likely to feel the full force of this consumer-led change would include computers and gaming, entertainment and media, consumer electronics, and beauty. Businesses that offer experiential retailing such as furniture and household goods, clothing, recreation and outdoor supplies are likely to thrive.
Researchers Dr Sean Sands and Carla Ferraro predict the shift in consumer buying habits, fuelled by the internet and online retail spaces such as eBay, means retailers will need to think outside the square and provide new ways to engage with their customers or face being left behind, loss of market share or even closure.
"Consumers are growing tired of 'filters' reducing the transparency of their interaction with the producer of the goods, reducing authenticity of the goods and services they purchase. They want more direct access to the sources of goods and expect more from the retailer - it's not enough to source the goods alone, retailers needed to source better, more often and for less," Dr Sands said.
"This shift has occurred over the last decade, accelerated by the internet and our growing desire to be part of the creation process for the products and services we choose to buy."
Dr Sands said the changing landscape means retailers would have to fight harder for customer share and come up with innovative and inventive ways to retain customer loyalty.
"While the anti-retail movement may not appear to provide obvious opportunities for retailers, progressive brands could seize the competitive advantage and offer facilities that cater for the changing desires of the market, such as creating hubs that encourage the exchange of goods, where the retailer plays a support role and the customers and suppliers are the heroes," Dr Sands said.
"We've seen some great examples of this including Threadless, an online company that lets consumers design their own t-shirts, Marqt, a fresh food market in the Netherlands where the person selling you the bread, baked the bread, and Umbra, a European sportswear manufacturer that has product designers embedded in their retail space."
They have produced the Retail 2020 report, which outlines key retail trends for the next ten years based on extensive research conducted in Australia, New Zealand and Asia.
Editor's Note: Original news release can be found here.
|
