E-Commerce summit: Keep foot on digital accelerator, says PM Scott Morrison
PM Scott Morrison says keeping our foot on the digital accelerator is vital for the nation’s post-COVID recovery.
Welcome to our live coverage of The Australian’s E-Commerce Summit. We’ll be unlocking the secrets to success in this fast-changing environment and reveal the innovations that have seen some businesses experience record growth. success in this fast-changing environment.
Headline speakers include Prime Minister Scott Morrison Australia Post CEO Christine Holgate, Communications Minister Paul Fletcher and Woolworths CEO Brad Banducci.
Ms Holgate has given the keynote address and the summit then heard Prime Minister Scott Morrison set out the government’s digital blueprint to help lift the country out of recession. A panel then discussed the impact of COVID-19 on the digital strategies of retailers.
In a one-on-one discussion, Woolworths chief executive Brad Banducci said brand was even more important in the digital realm, before we heard from RedBubble’s Martin Hosking and Catch’s Gabby Leibovich. John Durie then spoke to Kathmandu’s Reuben Casey about balancing the in-store and online experience.
A final panel examined how e-commerce can succeed in regional Australia.
Join us for day two of the summit on Thursday, when we’ll hear from speakers including Communications Minister Paul Fletcher, eminent retailers Paul Zahra and Mark McInnes and Afterpay’s Anthony Eisen.
- You can find more coverage of the 2020 E-Commerce Summit on The Australian’s dedicated page.
12.16pm: Wrapping up
The first day of The Australian’s E-Commerce Summit has wrapped up.
Scott Morrison said COVID-19’s acceleration of the e-commerce industry will be a cornerstone of the country’s recovery from the pandemic. Innovation in the fintech industry will open up Australia to new markets.
Panelists stressed the importance of delighting your customers during an online experience and offering an equal level of service to what they receive in-store.
With fewer points of customer contact in online retail, creating a personalised point of difference is key to success.
11.49am: Shopping local, online
Founder of online retail directory, Buy from the Bush, Grace Brennan said her platform had given customers an opportunity to shop with purpose by supporting regional businesses.
“During the drought cash flow dried up for these businesses. Foot traffic slowed and lots were looking at closing their doors. Others are wives of farmers who need to diversify their household income,” she said.
Ms Stewart said COVID presented challenges with supply chains as countries abroad when into lockdown.
“That side was incredibly tricky, but being open with my customers meant I let them know the order would be here at a certain time. It didn’t create an annoyance, it created hype,” she said.
“A lot of people turned to craft during the time of COVID because they were given the time to pause.”
11.42am: Make it personal
Ms Cay said her clothing company Birdsnest aimed to create a personalised shopping experience online to distinguish it in the crowded market.
“You can shop by body shape, by occasion. It’s about being personal and taking what was happening in an offline environment and recreating it,” she said.
Owner of craft store Mary Maker Brydie Stewart added that communicating with customers was key to establish a point of difference in the market.
“Giving them pride in the product means when it was launched, they had a heightened response to it. They were proud that they had contributed to our community,” she said.
11.34am: E-Commerce in regional Australia
The final panel of the day is titled Regional Australia: How it can take advantage of the e-commerce boom and deal with logistical challenges
Hosted by The Australian’s Helen Trinca, it will feature:
- Jane Cay, Founder, Birdsnest
- Grace Brennan, Founder, Buy from the Bush
- Brydie Stewart, Owner, Mary Maker
11.21am: What suits the customer?
Kathmandu chief executive Reuben Casey said the brand was guided by the customer in determining the balance between bricks and mortar stores and online.
“Where we see online is strong, often the store is doing well in that catchment and vice versa,” he said.
“It’s about the customer catchment and both our store teams and online experiences support each other and drive the experience of our Kathmandu brand.”
He said customers were more likely to visit a store in-person for technical products such as hiking boots or a multi-day hike backpack.
The retailer’s percentage of online sales rose from 10 per cent to 18 per cent during COVID-19.
“Obviously this was helped by the fact that our shops were shut in April in New Zealand. But it’s been a growing trend over the years,” he said.
11.08am: Kathmandu’s Reuben Casey
Next, the summit will hear from Kathmandu chief executive Reuben Casey.
He’ll be in conversation with The Australian’s John Durie to discuss striking the balance between in-store sales and e-commerce growth.
11.03pm: ‘It needs to arrive well’
Martin Hosking said his online art marketplace business had invested in its unboxing experience, which had boosted the company’s social media presence.
“One of the challenges is getting that unboxing experience as good as possible to differentiate your brand,” said the founder of RedBubble.
“Trying to create something there which arrives well and is compelling is vital for e-commerce companies.”
Gabby Leibovich said that COVID-19 had been the “best period” for the e-commerce market company.
“It is the best year ever to launch an e-commerce business, whether than be in fintech, education,” he said.
10.40am: Brand still king – Woolies chief
Woolworths CEO Brad Banducci says e-commerce had already been a strong trend for the prior to the pandemic.
“Of course, no one could have projected the impact of COVID … we were growing between 80-100 per cent in our food business. Clearly we need to continue to invest going forward,” he said.
Mr Banducci said the most valuable asset of the company was the brand, regardless of digital or in-store experiences.
“Brands are even more important in the digital world and we need to continue to work on that in the e-commerce world.”
10.16am: The Amazon challenge
Mr Gance said the arrival of Amazon in Australia had presented a challenge, but Chemist Warehouse had maintained its strong market share.
“The regulation about ownership of pharmacies means Amazon cannot dispense prescriptions … with health and beauty we are very competitively priced. Our fragrances are a fraction of Amazon’s prices,” he said.
“It will affect us though so we always need to be vigilant about pricing and service.”
10.05am: How retailers have adapted
National Online Retailers Association of Australia founder Paul Greenberg has begun the panel by arguing that Australian retailers adapted well to the accelerated shift to e-commerce during the pandemic.
“The bigger end of town has invested significantly. Their in-store experience has enhanced their digital capabilities,” he said.
JB Hi-Fi chief executive Richard Murray said the technology company invested in a long-term strategy to serve their customers where they choose to shop.
“For a brick and mortar retailer, you still have 80 per cent of sales begin with a digital footprint … we want to delight customers however they shop with us.”
Chemist Warehouse founder Jack Gance says the company had tracked an intergenerational shift in its online customers.
“The customers that are buying online today are not just the millennials. The buying patterns show they are really the normal housewives and husbands,” he said.
“If they enjoy the experience, they will continue to do so.”
Mr Greenberg agreed that the accelerated shift to e-commerce could reinforce and change consumer habits.
“I think we’re seeing a permanent shift to a very digital first environment. That’s not to say that the stores won’t still play a significant part, but we are seeing a shift to the convenience and safety of online shopping.”
Read more: Digital first, but stores still have role
9.40am: Keep foot on gas: PM
Scott Morrison said Australia’s challenge is to “keep the foot on the digital accelerator” as the country recovers from the COVID-19 pandemic.
“The digital economy is essential to create the jobs that Australians need,” he said.
The Prime Minister said the pace of digital transformation will require employees to upskill on a more frequent basis.
“It’s not only individuals who need to prepare for such change. It’s also Australian businesses that must grasp at this change,” he said.
Mr Morrison said Australian’s fintech industry would be essential to open the country to new trading markets.
“We can expect Australian fintech entrepreneurs to be in the leaders of the pack around the world,” he said.
“Our Digital Business Plan is just the start of our plan to become a leading digital economy by 2030.”
9.24am: COVID brought rapid growth – Holgate
Australia Post chief executive Christine Holgate has begun her keynote speech at The Australia’s E-Commerce Summit.
Ms Holgate said the COVID-19 pandemic boosted e-commerce trade to a level beyond what the industry anticipated.
“We moved to chartering more planes ourselves … our people worked relentlessly to move the packages that families at home demands. It was not just the number of parcels that grew, but their weight too,” she said.
“This put a lot of pressure on our service and a lot of lessons were learnt.”
Ms Holgate said the upcoming holiday season would be Australia’s biggest e-commerce period in history.
“Consumers expect a 25 per cent increase in their online shopping compared to their 2019 levels,” she said.
GLYNIS TRAILL-NASH 9.05am: Make fashion thrive? Try fancy footwork
For Erica Berchtold, times of crisis call for agility and a strong anchor.
The chief executive of The Iconic said that while this “tumultuous year” had tested the online retailer like everyone else, it had also “confirmed our belief around customer relevancy”.
“Now more than ever you’ve got to understand what your purpose is, what you stand for, who are your core customers, and truly understand what they want,” Berchtold told The Australian ahead of taking part in its E-commerce Summit this week.
She said customers had sought out different products during the pandemic, and it was up to retailers to respond.
“While we were well placed to quickly pivot and accelerate new categories (and) products to meet the post-pandemic needs of our customers, it highlighted how customer behaviour can change in an instant and the importance of having the right mindset — an agile mindset — to be able to make those fast pivots. You have to be incredibly clear about this, especially in the chaotic world we live in right now.”
The retailer had a number of initiatives in the pipeline before COVID struck, including an outlet model for discounted products and a beauty offering. Rather than slow down their rollout, it chose to fast-track them.
“Initiatives, ideas and new iterations that would have taken 12 to 18 months have been executed in as little as three months,” Berchtold said.
“This pandemic has forced everyone, both personally and professionally, to become more adaptable, agile, innovative and nimble.”
Read more: Making fashion thrive in a crisis with fancy footwork
Simon Benson 8.15am: Morrison sees digital future
Scott Morrison has set a challenge to make Australia one of the world’s leading digital economies within a decade by using the COVID-19 crisis as a “springboard” to revolutionise key industries.
In a speech to the The Australian E-commerce Summit on Wednesday the Prime Minister will lay out his government’s digital blueprint to help lift the country out of recession.
“Our challenge is to keep the foot on the digital accelerator, as we emerge on the other side of this pandemic,” Mr Morrison will say.
“While we can marvel at the innovation and the digital acceleration, the bigger picture is that our economy has taken a massive hit.”
“So we have two stories happening simultaneously in Australia — an economy that is experiencing the worst set of economic circumstances since the Great Depression, and ferocious adaptation that businesses have engaged in to keep these circumstances at bay.”
The Prime Minister’s comments came as a study found digital transactions helped more than 60 per cent of businesses keep operating during the crisis by limiting revenue losses to 7 per cent — even though in-store revenues fell by 21 per cent.
The study by Deloitte, commissioned by Australia Post, found revenue losses for small businesses would have been 30 per cent rather than 17 per cent were it not for e-commerce revenue.
Read more: Scott Morrison: Digital to extract us from crisis
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