October 2013

The New Consumer Paradigm

Embracing The Evolving Retail Landscape

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1. Introduction

As the industry has evolved over the past eight years, so have our Recommended Retail Practice Reports. From an index of spending intent through to last year’s fascinating in-depth interviews with some of Australia’s leading retail success stories. We are focussed on providing the most relevant and timely insights as we create true retail, leisure and entertainment destinations which are world-class

This report comes at a time when we, AMP Capital Shopping Centres, are creating our own valuable, meaningful and inspirational visions of the future. Our extraordinary $2.5 billion dollar development pipeline is underway and we are creating the next generation of retail. As well as our retailers, insights from our report also influence how we create our future centres and help to paint a truly inspiring picture of the shopping centres of tomorrow – shopping centres that are world-class, exciting spaces to shop, work and play.

Of the top 25 global apparel retailers, 10 could be operating in the Australian market by the end of 2018 compared with six today.
Bryan Hynes

 

2. Globalisation

Be Internationally Competitive

With international retailers predicted to capture six per cent of the Australian fashion market in the next five years, it’s essential the local industry responds seriously. From the instore experience, to improving assortment and pricing, to the development of a mobile-friendly website, Australian retailers must compete effectively. Most importantly, it’s crucial to put the fun back into shopping! How can you surprise and delight your customers?

What is of greater importance is to be very clear about which generation or generations you intend to target and the reasons why.

Michael Baker

3. Generational Evolution

Understand your audience.

Possessing a deep understanding of the various generational cohorts – such as Generation Y’s predilection for fashion and Mexican food – can help you to build a better and stronger business, but it is no magic bullet. You must be very clear about which generation(s) you are hoping to target, and develop a strategy accordingly.

By 2050, the Australian population will be around 35 million persons or 50 per cent greater than exists now.

Tony Dimasi

4. Urbanisation

Support The New Great Aussie Dream

As the population becomes ever more urbanised, more Australians will live in dense inner suburban areas. Retailers and shopping centres need to continuously evolve, and can support urbanites with more convenience, 24-hour access, and a broader mix of services – from medical and educational facilities, to health, fitness and entertainment.

Your store design, lay-out and atmosphere must wow the consumer and connect on a deep experiential, emotional lvel so the consumer will want to come back time and again.

Gavin Duane

5. Technology Innovation

Seemlessly Merge The Digital And Analogue Worlds

Combine a flawless in-store environment with strong online presence, including on mobile. In fact, treat mobile as an entirely distinct business-to-consumer channel. It’s essential to offer easily accessible information in both worlds. For example, make sure your customers can speak to a real customer service representative online while also providing a phone number; choice is key. Don’t think digital is a cure-all however; adapting the latest technologies will not hide a fundamentally poor business model.

In the past, people visited retail stores, shopping centres and shopping strips predominantly as a place to shop - to make a transaction. Moving forward, the vest and most successful retailers will become their consumers 'third space' (after work and home).

Anders Sorman-Nilsson

6. Consumer Behaviour

Help Your Shoppers Boost Their 'Status 2.0'

Retailers can differentiate themselves by supporting their customers in improving their social media status. Can you offer exclusive products or information which caters to their digital vanity? How about giving them a chance to show off their skills? Find your customers that have a strong online presence and nurture them as advocates. In today’s world of peer-to-peer recommendations such endorsements are worth their weight in gold.