brainmates is a Sydney based consulting and training company. As expert Product Managers they help companies from a range of industries design and develop products that customers will love. For the full retail report see: http://www.brainmates.com.au/brainrants/retail-revival-a-fresh-perspective

1. Retail Revival: A Fresh Perspective
In December 2011,
brainmates partnered with
Nine Rewards to research
current consumer attitudes
and spending habits.
The findings have significant
implications for Australian
retailers in their bid to entice
local customers.
–Page no.

2. Challenges for Australian Retailers
Volatility of the global economy.
Rise of online retailing.
Penetration of smart phones/ m-commerce.
Rapidly evolving technology.
Strong Australian dollar.
Competition from international retailers.
Control in the hands of the customer, social media and
sharing of experiences.
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3. Our Approach
We surveyed 1073 Nine Rewards customers across Australia and
analysed data using a Product Management Framework.
Men (47.7%): Women (52.3%)
Aged 18-64
83% live in main cities
Salaries from under 30K (13%) to over 100K
(36%)
Majority earned 50-100K (56%)
43% have children
66% married
8% lived with their parents
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4. 1. Key Findings
The cautious consumer:
73% reported to be saving every month.
Does this mean consumers are not spending?
No. The Australian consumer is simply more
cautious.
The cautious consumer decoded:
1. Researches the best price before buying (61%)
2. Plans what they want to buy (46%)
3. Doesn’t buy as much as used to when at the
shops (46%)
4. Don’t go to the shops as much (38%).
5. Mostly shops online (14%) –Page no.

5. 2. Key Findings
Online spending and sentiments:
Over 9 million Australians now shop online.
96% have made purchases online in the last 12 months.
What are the main reasons for shopping online?
1. It is cheaper. (75% )
2. It is more convenient/ “it is delivered to my door”. (74%)
3. Compare prices more easily. (67%)
Online by category:
Travel is the leading category in Australian online retail ($7.4b);
65% of respondents purchasing travel online.
People least likely to buy shoes and groceries online.
Purchase of electronics on the rise. (51% of males purchase –Page no.
online)

6. This Means That….
1. Consumers are still spending but taking a more
considered approach to purchasing.
2. Consumers are not persuaded to purchase by
traditional retailers’ discounts or online deals
(Only 36% stated they only buy products on sale
– raising doubts about the the widespread
discounting strategy retailers have adopted.)
3. Online retailing should not be blamed for the
contracting retail revenues. Online retail is still
only a fraction (3.7%) of total consumer goods
retailing.
4. The online retails industry is fragmented with no
single operator (of the 30,000 online retailers)
controlling more than 3% of the market. 6

7. Other Interesting Insights From Our Research
PROBLEM: Customers have little time.
INSIGHTS:
1. Online voted most popular retail channel for shopping
during the weekdays; shopping centres preferred for
shopping on weekends.
2. Online purchases mainly made while at work (61%),
late at night (71%) and when the kids are asleep.
(65%)
SOLUTION: Multi channel shopping.
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8. Other Interesting Insights From Our Research
PROBLEM: Customers don’t have identical retail habits.
INSIGHTS:
1. Women shop independently; 58% prefer to shop on
own.
2. Men shop with their wives; 42% prefer to shop with
their wives.
SOLUTION: Customer research and segmentation.
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9. Recommendations –Page no.

10. 1. Be Customer Centric
1. Insights to be drawn from the users of
the products and services themselves –
your customers!
2. Get to know your customer’s
needs, drivers and pain points through
surveys, interviews, observation!
3. Understand and stay focused on your
customers and what they value: write
user and buyer personas and scenarios.
4. Consider the end-to-end product
experience: ensure each element
satisfies your customer’s needs and adds
value in their eyes.
–Page no.
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11. 2. Keep an Eye on International Trends
1. Getting Bigger and Going Global
Globalisation and consolidation will need to be
considered by every local retailer if they want to
remain competitive.
2. Building Great Products
A significant shift to becoming the ‘development’
of great brands. E.g. Tesco in the UK, and
Woolworths in Australia producing private label
products.
3. Understanding the individual consumer
Ramping up customer relationship management
in a push to understand shopper behaviour;
multidimensional segmentation and target
product selection and range. Developing loyalty no.
–Page
programs

12. 3. Apply a Product Management Approach
Find new business models to generate revenue.
Look to other industries for ideas.
Understand your customers intimately and what
retail needs they may have which are not currently
being satisfied by other retailers.
Ensure that your business articulates its value
proposition clearly and to the right target market.
Always prepare well for the launch of new products.
Ensure staff are trained so that they can answer
questions.
–Page no.
Monitor your business and your results religiously.

13. About Us
brainmates
Product Management People For a full copy of the retail
Leads companies to strategise, design and results, please visit
http://www.brainmates.c
deploy customer-centric products and
om.au/brainrants/retail-
services. revival-a-fresh-perspective
Offers professional consulting and training.
Clients include industry leaders in media,
communications, government, financial
services, medical and software.
Brianna Ragel
www.brainmates.com.au
Author and Product Marketer, brainmates Suite 906, Level 9
8 years of experience crafting and executing 84 Pitt Street
Sydney NSW 2000 Australia
strategic branding and marketing initiatives in Tel: +61 (2) 9232-8147
Australia and London. Fax: +61 (2) 9232-1694
–Page no.
Email: info@brainmates.com.au
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