The concept of consumerism is nothing new - it’s a mentality upon which our society is built. And it shows no signs of slowing down - rather, thanks to the internet, the number of shopaholics is at an all-time high.
The combination of being poor in time but rich in responsibility means online shopping has become extremely popular. With the rise and rise of e-commerce, the question remains: is there enough space in retail for both online and physical stores? BD sets out to investigate the matter...
Face the facts
While there’s no argument that online shopping is more prevalent than ever, it still only equates to a small percentage of the total amount of retail sales. According to eMarketer, international retail sales are predicted to amount to $US22.492 trillion this year. Of this statistic, e-commerce will account for 5.9 per cent of the total retail market, or $US1.136 trillion. By 2018, it is believed this number will increase to 8.8 per cent, or $US2.5 trillion.
In Australia alone, online retail sales will rise by more than 14 per cent within the next 12 months. Double-digit growth will continue until 2018, at which time online sales are expected to exceed $14.5 billion.
As a nation, we are in a click frenzy - Australians claim the second-highest digital buying penetration in the Asia-Pacific. 80 per cent of the nation’s internet users will make online purchases in the next year. This is only slightly behind current leader, Japan, who are at 82 per cent.
The argument for online
For Kate Morris, founder of Adore Beauty Online, the convenience of digital purchases far outweigh a positive experience in-store. “It’s great to be able to offer convenience to busy women. Yes, in-store shopping can be fun, but not if it means bolting to the shops in your lunch break because you’re out of cleanser – and definitely not if it means spending your Saturday hauling the kids around a mall. Personally, I think it’s much more relaxing to be able to shop in your pyjamas from the couch,” she says.
As well as convenience, the internet allows people to discover key information about a brand without having to do the legwork (literally) of wandering in and out of shops. “The internet allows customers to dig deeper into a brand’s identity and how they operate. It’s so much easier to research a product or brand online than trying to find out information from walking around a shopping centre. Because we don’t advertise, instead relying on word-of-mouth, the rise of online shopping and social media has helped to tell our story about how we operate and what we believe in,” says LUSH retail director Peta Granger.
For Australians, location is critical, with those living in remote destinations often struggling to physically find beauty offerings - an issue online easily overcomes. “We love making a greater product range accessible to all Australians. I grew up in Tasmania myself and always found it very frustrating that I couldn’t find the brands I wanted,” reveals Morris. Accessibility was also the inspiration behind the launch of ’s e-commerce ability. Brand manager Emily Alonzo says: “We launched the Coast to Coast e-commerce site to allow our Australian customer greater access to the brand and our products. We know that our customer is digitally savvy and often time-poor, so our e-commerce platform caters to their needs.”
But what about the retail experience?
Traditional retail is geared towards giving customers a sensory in-store experience, with staff included. Alonzo believes there is room for both e-commerce and bricks and mortar stores within the retail industry, largely because they give customers vastly different shopping experiences. “A physical store focus is still very important for the brand and our customers. It provides a tactile environment, where our customer can have the holistic sensory experience that is such a part of Coast to Coast’s brand ethos,” explains Alonzo.
Granger says not only is there room for both, but it is important to offer a variety of shopping options to customers. She says: “I love the ease of online shopping when I’m really busy at Christmastime or to spend a Friday night buying something a bit indulgent while tucked up in bed - how times have changed on what constitutes a great Friday night! I also really enjoy the sensory experience you get in a store, to be able to touch, feel and try on. I’ve never bought an item of clothing online because fit and the feel of material are really important to me.”
From a company perspective, Australia’s e-commerce director Stacey Crommelin agrees the key to building success in the digital age is to utilise each platform available, attracting a slew of customers with different buying habits in the process. “The Body Shop Australia is currently positioned as a multi-channel retailer, with one brand and three ways to shop: in store, online or at an in-home party. As a brand, we recognise that many of our customers are using the web as a research tool for shopping, but not everyone intends to complete their purchases online,” she says.
“Our overall goal is to provide an optimal shopping experience to meet each of our customer's needs. Some customers want to come in store for the sensory experience and to touch and feel our products. Another customer may want the convenience of shopping online to replenish their skincare products, while other customers may want to have some fun with a group of friends and host a party in their own home. Research indicated that multi-channel customers generate twice as much as single channel customers, so we endeavour to engage with our customers across all three channels.”
So, what now?
The digital age is certainly providing a myriad of ways to fuel our shopping habits, with the increased growth of e-commerce set to attract more fans over time. Despite this, traditional methods of purchasing remain sturdy - with the future likely to see the multi-prong approach coming out on top.
