According to recent Deloitte research, retailers in Australia can expect to see a boom in trading – the result of low interest rates and a healthier housing market. On a month by month basis, turnover figures in retail have increased consecutively too.
This positive news is likely to be affected by the budget in the upcoming financial year, which will have considerable impact due to governmental cuts across the sector.
Described by Deloitte as a “fiscal challenge”, the analysis of the retail markets in Australia and budget effects will likely lead to a reduction in household disposable income. Despite this, the global consulting firm believes that 2014/15 will be a strong year for the industry.
Australia and the international retail stage
With a number of global brands across the fashion and lifestyle sectors seeking to gain a presence in the growing Australian market, what could national retailers learn from these new imports?
Trialling a foreign market with online options first is a useful way to gain insight into how strong your brand is and to gauge the demand for your products in a certain corner of the world. From there, you can use the analysis gleaned virtually and apply it to a bricks and mortar plan.
Researching trends, likes and preferences prevalent in the overseas market you intend to invest in is a prime way to equip your strategy with the best possible information. Failure to do this can waste time and money, as well as the often irreparable damage of many a closed shop sign can do for your brand.
Building across hemispheres and even continents can bring with it a number of practical challenges. Keeping in tune with local culture, news and weather are all significant elements for a successful expansion.
Heading straight to a capital city, despite its high population numbers and developed infrastructure, may not always be the wisest choice for the first store opening in a new foreign market. Get to understand the needs of the domestic consumer base by also considering smaller cities and regional towns to get a foothold across the country.