Innovation key as the economy ‘moves along nicely’
Business leaders Gerry Harvey and Ahmed Fahour are optimistic the Australian economy is moving in the right direction and say innovation is the key to staying ahead of competitors.
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Business leaders Gerry Harvey and Ahmed Fahour say they are confident the Australian economy will keep powering along despite concerns growth is fading.
Mr Fahour, the former Australia Post managing director, says the economy is still “moving along nicely”, while Mr Harvey says he believes his retail chain, Harvey Norman, will gain business if he keeps innovating.
The pair were speaking yesterday after official figures revealed retail spending dipped unexpectedly last month, by 0.1 per cent, suggesting stimulus from tax cuts and lower interest rates was yet to wash through the sector.
Mr Harvey said he had seen many economic changes since he started in business in 1961.
“I’ve been through it all in that 60 years — I’ve been through all the ups and downs you can think of,” he told Business Daily.
y, who chairs the board of Harvey Norman, said innovation was a key to the continuing success of the furniture and electricals chain.
Mr Fahour said that while some people were complaining “life is tough and business is tough”, the economy was not going backwards.
The Australian Bureau of Statistics will today release its official quarterly report card on growth in the economy, as measured by gross domestic product.
Economists broadly expect GDP to have grown 0.5 per cent in the three months to June.
“No question, leading to June 30 the economy was subdued … but people need to stop and realise it’s not as if we were negative,” said Mr Fahour, who is now chief executive of Latitude Financial Services, formerly GE Money.
“It is not supercharged but it is not negative. It is moving along nicely.”
“Those that innovate and give customers what they want, they will do well.”
There were some indications there could be some economic momentum building, he said.
Latitude yesterday launched a new “buy now, pay later” system, dubbed LatitudePay, and signed up Harvey Norman as its first retail partner.
The system is being touted as a potential rival to that offered by market leader Afterpay Touch.
LatitudePay customers will agree to a credit and ID check as part of the “90 second sign-up” process to receive approval for loans between $150 and $1000.
The loans will be repaid in 10 weekly instalments, and customers will not be charged interest or fees if they pay each instalment on time.
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Latitude also said retailers would pay no service fees on purchases up to $250 until at least January 2021.
Mr Fahour said it was important Latitude carried out credit checks. Some companies in the buy-now, pay-later sector have not been carrying out the checks.
“Harvey Norman loves people shopping but they don’t want them shopping if can’t pay it back.”
Mr Fahour said parents wanted to know the industry was treating young people who used buy-now, pay-later services “in a thoughtful way”.
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