Following the news that H&M performance has been weak in the Australian market, Wayne Wang, CEO at crowdsourced courier service, Go People offers some insights into the retail industry in Australia
According to fashion stylist and business strategist Amber Renae, for H&M to turn around, they need to pick up their online presence and delivery services to continue to compete.
H&M’s story is one all retailers, no matter their size, should take note of. If local retailers are going to continue to be prosperous in the face of weak consumer spending and increased competition from global giants - such as Amazon - they need to offer consumers a great and convenient shopping experience.
The Battle of Fashion Brands
“Consumer spending has slowed significantly in Australia, particularly in regards to fashion. The increasing cost of living and stagnating wages means consumers are cutting their spending on discretionary items.”
“This is proving challenging for fashion brands, with many closing stores in the face of reduced spending and increased competition. But there are some winners in the Australian market, most notably those with a strong customer experience, from the store to your door.”
“Aussie consumers are a savvy bunch and will often go in-store to try items on but go online to find a more affordable version. Additionally, we’re now buying more and more for an occasion or out of necessity. It’s not an ad hoc purchase, it’s one that’s needed and required by a certain time.
“So, if the retailer doesn’t offer easy and convenient delivery options, they will often browse competitors offerings to get what they need when they need it.”
Utilising the Power of the Crowd to Meet Demand
“New technologies are available to offer a better, simpler solution, in the form of the crowd. Crowdsourced delivery services offer unprecedented scale for retailers selling their goods online. Every day, retailers can log onto a crowdsourced platform and facilitate the high demand of deliveries. This enables them to make deliveries in a timescale that suits consumers - from three hour, same day and next day deliveries.”
“Additionally, the antiquated model of providing customers with broad delivery times and leaving slips when deliveries are missed has to change in today’s on-demand world. With consumers using more on-demand applications and becoming used to the live tracking functionality they offer, there is no reason we shouldn’t apply this to regular deliveries.”
“If retailers want to win the battle of the fashion brands, using the latest technologies can provide the services that consumers demand, whilst reducing the cost of traditional courier services and improving the overall experience.”
- Wayne Wang, CEO at Go People