how nz retailers can thrive
Tristan will, head of retail at BDO, an accounting and business consultancy, said that physical retailers have a good chance to thrive, but only if they conduct research and invest in thinking, and propose new ways to improve customer experience.
\"Online is not a win-win and a-lose situation for entities and mortar,\" he said . \".
\"There are both, but retailers need to be different, both online and in stores, to meet changing consumer needs.
Customers increasingly want more \"experience\" when shopping \";
Will cites the growing influence of millennials-for this generation, work is often a means of achieving purpose, and is more relevant to leisure than career.
They often like shopping as a pastime and are seriously affected by the Internet.
Not just millennials.
Most consumers are increasingly demanding more immersive experiences, and will says many physical retailers are creating \"destinations\" where activities and experiences increase the \"stay time\" of customers \", if they are less likely to spend on products, encourage spending on services and experiences.
A theoretical example, Will says, is a retailer that sells fitness equipment, but it expands its fitness classes and health services, and it also involves a shoe store, make customers more interested in supporting services and products.
Stores that are able to combine the digital retail world with physical comfort and experience in an ideal location often stand out, like some Nike stores-where people can easily buy shoes online. But in-
Make progress like their international store
The active table adds experience.
The customer puts the shoes on the table-digital examples of the availability of shoes in different colors, prices and sizes can be obtained immediately, as well as information about the athletes wearing shoes.
In New Zealand, Will says, \"Shop\'n Go\" technology for pak \'n Save is an example of how local retailers can improve their experience-through technology, customers can scan goods as they Go, payment is only required to arrive at the checkout counter, thus reducing queuing and waiting times.
Amazon Go, which is currently on trial in the United States, plans to open 3000 convenience stores, but currently only operates 8.
The key is that there is no checkout, no waiting time;
When the store uses cameras and sensors to track everything the customer does, the customer activates the app on the smartphone.
Then they can choose a product and leave-the money deducted from the account through the app . . . . . . Until there is no queue.
S. Revenue is estimated to be $4.
5 billion if all 3000 stores pass, returns are higher than traditional convenience stores due to speed and convenience.
Will said that most New Zealand retailers do not need such \"futurism\" in their thinking \", although he knows that there is a similar project here that tries to use camera and sales data to predict the peak time of the customer-
Items and other models that need help with store participation (a)sell more, (b)
Make the shopping experience more efficient and enjoyable, and (c)
Allow them to staff the hotel according to the most likely flow of customers.
\"Many New Zealand retailers can improve by adjusting their interactions with their customers,\" Will said . \".
\"In fact, all the retailers I know in New Zealand are in the industry because they like to interact with others-but it could be buried in the hustle and bustle --
Business is hot every day.
\"Retailers can\'t stand still-they have to kiss
Be proactive, do research, understand what is happening overseas, understand what is having a positive or negative impact on their business, and plan how they will respond to or accept it.
An example of a company that forgot to interact with customers, he said, is Dick Smith: \"In the 90 s and early 2000 s, Dick Smith really interacted with people;
They are known for the staff and they will really help you to determine if you need that or that . . . . . . \"
As an online company, this rewarding and enjoyable experience has changed.
All you got at the time was a Dick Smith employee who checked something online-you can do that before you get to the store.
\"New Zealand\'s retail industry generated $120 billion last year and is expected to reach $1 per year by 2030.
Online consumption is currently estimated at $4. 5bn annually (
More than 2017 growth in 2018)
Travel with the 43 overseas retailers (
New Zealand retailers earn 57.
The trend in recent months has been that local online consumption has grown faster than spending with overseas retailers.
So, Will says New Zealand retailers have the opportunity to develop and improve their fortunes: \"But they have to develop strategies based on analytical tools;
They must know what state their business is in;
If they are going to develop digital channels, they have to do the right thing-bad experiences for customers can have a big impact on brand awareness and loyalty.
\"Retail technology is exciting-but it can be a threat if you don\'t know and have no plans.
In order to thrive, physical retailers may need to be in omni-
Channels to create destinations with complementary goods, services or experiences.
BDO has just compiled a robust guide for retail businesses.
For more information, please visit www. bdo.