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From clicks to bricks, Aussies seamlessly fuse online and IRL buying
Australian consumers are prioritising value and convenience in a difficult economic climate.
In response to these cost-of-living pressures, consumers are moving seamlessly between both online and offline retailers, often starting with online research. Retailers are responding by using technology to help meet customers’ needs in everything from click and collect to personalisation.
Studies show inflation remains a major concern, with research commissioned by Amazon from leading analytics company GlobalData showing almost 85 per cent of Australian consumers are worried about the cost of living and looking to find the best price.
GlobalData’s research shows more than half of us look at online reviews and comparison sites before buying in store.
“This tells us Australians are integrating online and offline channels across their daily lives and increasingly doing this to find value,” says Janet Menzies, country manager, Amazon Australia.
As the research shows, online channels give consumers access to choice, with many of us using the internet to check out our options before making a purchase. The average Australian online shopper visited almost eight online retailers in the three months to July, according to GlobalData’s numbers.
Local businesses are responding to new consumer shopping behaviours. Menzies says that over the last five years, well-established local retailers have expanded online, with Australian customers the winners from the fierce competition in retail.
“This is especially important at a time of household cost pressures. I am really proud we can play some role in helping raise the bar for customers across the retail sector.”
David Shaw, co-owner of haircare business SSS Hair is a shining example of how bricks-and-mortar and online can work together to help businesses thrive through market cycles.
Shaw started selling haircare products online more than 20 years ago and was one of the first online retailers of hairdressing products in Australia.
“We saw in the US you could buy anything from new hairdryers to clippers and styling products online and have it delivered directly to your door,” says Shaw.
“We thought if it is happening over there, let’s bring that to Australia. It unlocked new revenue streams while ensuring we remain competitive in an increasingly cluttered market.”
Shaw says financial pressures are changing client behaviour. In terms of the salon side of the company, clients are coming back for a haircut every eight to 10 weeks, rather than every four to six weeks, which was more normal in the past.
“We understand the pressures they’re facing. Our rents are rising and our expenses are increasing,” says Shaw.
“Our online store allows our clients to take care of themselves and their hair, enjoying life’s little luxuries at home.”
Shaw says even in a tough trading environment, he has been able to use online channels to grow his business while also sustaining the salon.
“Omnichannel retailing has been a lifesaver. During COVID, when lockdowns forced our salons to shut their doors, our online sales of hair care products kept our business going and allowed us to keep all our hairdressers employed on full pay.”
He says as a sales channel, Amazon has come into its own as inflation pressure has impacted his client base. “As cost-of-living challenges continue, Amazon has become our fastest growing channel as more people look for salon-quality products at an affordable price, delivered quickly to their homes.”
Both online and offline channels are also important for the success of Soodox, which sells natural pain relief products. The business first started selling its products through brick-and-mortar pharmacies and an independent grocer, before expanding to online channels.
“Using online channels for our products has allowed us to reach more customers and increased the recognition of our brand, which has led to more sales both instore and online,” says Armin Safaie, Soodox’s business development manager.
“For us, it’s not about one channel being more important than the other. We have seen both channels grow, and our integrated approach has only increased our sales overall.
“We go where our customers are and more often than not, they’re browsing both in-store and online to get what they need.”
To learn more, visit www.amazon.com.au
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