Article

Angela Southall
Angela Southall 6 September 2016

Australia - Retail Nirvana?

Earlier this month the Reserve Bank of Australia took the step to cut interest rates to a record low of 1.5% but the treasury assures us that growth is strong at 3.1% and unemployment remains around 5.7%*. It’s clear that the Australian Government is pushing for further business investment and this is undoubtedly making the Australian market an attractive proposition for overseas investors as well.

Earlier this month the Reserve Bank of Australia took the step to cut interest rates to a record low of 1.5% but the treasury assures us that growth is strong at 3.1% and unemployment remains around 5.7%*. It’s clear that the Australian Government is pushing for further business investment and this is undoubtedly making the Australian market an attractive proposition for overseas investors as well.

In the last few months there has been much coverage of UK retailers increasing both their presence and investment in Australia through partnerships, online presence and local stores. Debenhams International announced their dedicated Australian ecommerce site back in April which was being supported by a strong local marketing campaign following a local store partnership with Pepkor launched in 2015. Australia already accounts for 30% of Debenhams international online business so it makes sense that they are now really investing and moving this forward.

Zoe Craven, International Marketing Co-Ordinator eCommerce at Debenhams commented: "Australia is a key market for Debenhams and we are thrilled that the new Australian website has launched, allowing us to serve customers localised content and currency. Friend referral is the perfect mechanism  to spread the word, and we are excited to work closely with Mention Me to optimise this program"

And not wishing to miss its seat on the Aussie train, John Lewis announced in late July that it was partnering with local retailer Myer with local concessions, building on what is already considered a strong online presence in Australia.

Lastly we heard about Lakeland partnering with The Good Guys, again on a concession basis, looking to open 12 store-in-stores in October with a national roll out following closely behind over the next 24 months.

So why is the Aussie market so attractive to our UK based retailers and why are we suddenly seeing a flurry of moves Down Under?

There is no doubt that the economy, despite some unusual rate activity, provides an attractive long term proposition for retailers who feel they have really got to grips with the Australian consumer, to date largely through their online presence. Interestingly, conspicuous by their absence from the UK big retail players is Marks and Spencer, although there has been much speculation about their next move regarding international expansion.

Australia feels like a market that should easily make sense and be fathomable to UK retailers  - it has been proved viable but remains uncrowded and hence feels like a new land of opportunity. There is clearly an appetite for overseas brands in both fashion and beauty which is being met to some extent by these new players. Going forward, it will be interesting to see how the other Australian based retailers react and respond to continue to meet the demands of well travelled consumers with strong spending power in an ever changing  but exciting retail environment.

This post was previously published on the Mention Me Referral Blog

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
Amazon is the new Google for Product Search

Amazon is the new Google for Product Search

Amazon has become the top place consumers go on the Internet to search for products. In a Raymond James study published in early 2017, 52% of people said that Amazon is now their first choice for product searches. Here’s how you can get to the top of Amazon’s results and stay relevant

Brian Beck
Brian Beck 21 November 2017
Read more
4 Important Digital Marketing Channels You Should Know About

4 Important Digital Marketing Channels You Should Know About

It goes without saying that a company can't do without digital marketing in today's world.

Digital Doughnut Contributor
Digital Doughnut Contributor 5 November 2014
Read more
3 Social Media Trends to Follow in 2018

3 Social Media Trends to Follow in 2018

Discover three big trends that will have the impact on social media in 2018 - from ephemeral content, to influencer marketing and augmented reality.

John Siebert
John Siebert 15 November 2017
Read more
Top 10 B2B Platforms to Help your Business Grow Worldwide

Top 10 B2B Platforms to Help your Business Grow Worldwide

Although the trend of a Business to Business portal is not new but the evolution of technology has indeed changed the way they function. Additional digital trading features and branding has taken the place of traditional outreach methods to get in touch with targeted buyers or sellers.Here are some of the best and fastest growing global B2B platforms that are helping thousands of businesses in the world to grow and reach their international and local clients.

Salman Sharif
Salman Sharif 7 July 2017
Read more