Written by Australian retail sales for September have surpassed expectations, offering a brighter perspective on the nation’s economic resilience and its capacity to withstand potential interest rate hikes. Data from the Australian Bureau of Statistics, released on Monday, reveals a substantial 0.9% surge in sales compared to the previous month, significantly exceeding the anticipated 0.3% increase. Notably, this surge follows upward revisions to August and July data, indicating that consumer spending has proven more robust than initially estimated. Retail rebound Australia’s retail landscape is experiencing a remarkable resurgence in September 2023, with a resounding 0.9% boost in retail turnover. This remarkable upswing marks a welcome departure from the modest 0.3% increase in August and the 0.6% rise in July, both of which have been retrospectively adjusted. Ben Dorber, the mind behind these insights, delves into the driving factors: Dorber states, “The September surge can be attributed to a combination of factors influencing the retail industry. The arrival of warmer spring weather has lured shoppers to department stores, household goods retailers, and clothing stores. Shoppers are flocking to stores for hardware, gardening supplies, and fashionable clothing. Moreover, the launch of a new iPhone model and the introduction of the Climate Smart Energy Savers Rebate program in Queensland have provided a significant boost to household goods retailing.” While the surge in September marks the most substantial growth since January, it’s crucial to recognize that much of 2023 witnessed subdued consumer spending, resulting in historically low underlying growth. In trend terms, retail turnover has only inched up by a mere 1.5% compared to September 2022, marking the slowest trend growth over a 12-month period in the series’ history. This month has seen remarkable growth across most industries, particularly in non-food sectors. Department stores have excelled, boasting a 1.7% increase, closely followed by household goods retailing at 1.5%, other retailing at 1.3%, and clothing, footwear, and personal accessory retailing at 0.3%. Dorber sheds light on the surge in ‘Other Retailing,’ stating, “The upswing in this category is primarily attributed to a temporary boost in pharmacy turnover following the introduction of 60-day prescriptions and a consequential shift in income from Pharmaceutical Benefits Scheme medicines.” Retail growth nationwide Australia’s retail resurgence is not confined to a particular region, as all states and territories have witnessed an increase in retail turnover. Queensland stands out with a notable 0.5% boost, driven by the enthusiastic response to the Climate Smart Energy Savers Rebate program. Households are upgrading appliances such as washing machines, dishwashers, refrigerators, and dryers, contributing significantly to the overall retail rebound. Inflation on the rise Despite the recent uptick in inflation, retail turnover displays remarkable resilience. The Consumer Price Index indicates a rise in inflation for the current quarter, although it remains at a slower pace compared to the levels seen throughout 2022. To gain a comprehensive understanding of how changing consumer prices impact recent retail growth, we will eagerly await the release of quarterly retail sales volume data, scheduled for next week. CreditorWatch’s Chief Economist, Anneke Thompson, Weighs In on Retail Surge and Possible Rate Hike. “Today’s retail trade data revealed a slight increase in the rate of spending in September 2023, partly driven by the release of the new iPhone and a warm start to spring, which boosted spending on hardware, gardening supplies and clothing. Even though retail trade remains subdued by long term standards, this bump in retail spending may be the final evidence the RBA needs to convince it to increase the cash rate at the Melbourne Cup Day meeting on 7 November. There was no growth in spending recorded in the café, restaurant and takeaway food sector, highlighting the precarious nature of business conditions in this sector. CreditorWatch’s September Business Risk Index data shows the business failure rate in this sector is already at 6.80%, far higher than the business failure rate of all other industries. This sector has been struggling with high food, labour, utilities and insurance prices, but now has the added challenge of plateauing demand, just as we are entering the busy Christmas months. Today’s data may well see the failure rate of this sector climb even further.” Meanwhile, National Retail Association Deputy CEO Lindsay Carroll expressed her views on the boost in sales, emphasizing that it was both anticipated and welcomed by retailers as Australians flocked to stores in preparation for the impending summer. “As people anticipate a hotter-than-usual summer on the horizon, they have loosened their purse strings in preparation,” remarked Ms. Carroll. She noted that department stores and household goods retailers enjoyed the most substantial sales boosts at 1.7% and 1.5%, respectively. Additionally, other retailers experienced a surprising increase of 1.3%. The change in weather and the onset of the cold and flu season prompted consumers to take advantage of the 60-day prescriptions available in pharmacies. Food retailing also rebounded, with a 1.0% increase, signaling that consecutive rate pauses by the RBA made Australians less cautious with their spending in September. Ms. Carroll emphasized the potential benefits of another interest rate pause this month, fostering freer consumer spending during the November/December sales period and setting retailers up for the upcoming holiday season. Ms. Carroll expressed optimism about the robust industry data, hoping it signifies a sustained trend. She also pointed out that Tasmania and New South Wales experienced the most substantial retail sales increases at 1.8% and 1.3%, respectively. Industry data indicates that Queensland’s 0.5% increase can be attributed to the September release of energy rebates for appliances. “Retailers can utilize the September sales boost to plan their seasonal employment needs for the Christmas period,” she stated, adding that they are hopeful that increased consumer sentiment will result in a positive start for retailers moving into 2024. The National Retail Association, representing over 60,000 stores across Australia, has been a cornerstone for businesses in the retail and fast-food sectors for nearly a century. Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
Key highlights: India’s “India@2047 Vision Document” outlines a roadmap to achieve a $30 trillion economy by 2047, with a per capita GDP of $17,590. The document consolidates ten sectoral visions from multiple ministries, setting the stage for key sector domination, technological leadership, and essential reforms. NITI Aayog actively consults with influential figures and accounts for global megatrends, propelling India towards a transformative future marked by urbanization and governance restructuring. With drafting slated for completion by December, NITI Aayog’s CEO BVR Subrahmanyam has unveiled ambitious plans to make this roadmap accessible to the public within three months. The Vision Document represents a consolidated effort, amalgamating ten sectoral thematic visions painstakingly developed over nearly two years by various ministries. Forecasts by NITI Aayog indicate that India’s economy is poised to reach an astounding $30 trillion by 2047, accompanied by a per capita GDP of $17,590. While specifics regarding the document’s contents remain under wraps, Subrahmanyam has disclosed that it will delineate key sectors and technologies that India must dominate by 2047. It will also address the pivotal institutional and structural reforms required to actualize these ambitious objectives. Notably, the Vision Document plays a critical role in steering India clear of the middle-income trap, a persistent concern among policymakers. The groundwork for this visionary endeavor commenced in December 2021, guided by the Ministry of Finance’s economic parameters and projections. Ten sectoral groups of secretaries (SGoS) have diligently engaged with stakeholders, including think tanks, research institutions, industry chambers, and export promotion councils. For instance, the SGoG dedicated to commerce and industry conducted consultations with a staggering 20,000 individuals. In the final week of November, NITI Aayog has planned consultations with influential figures such as Mukesh Ambani, Gautam Adani, Nandan Nilekani, N Chandrasekaran, and other prominent thought leaders. This grand vision accounts for eight global megatrends that are set to reshape the world by 2050. These trends span diverse domains, including demographic changes in India and Africa, income disparities, climate-related crises, technological advancements, and geopolitical shifts. NITI Aayog is further extending its support to states like Gujarat and Andhra Pradesh in crafting their individual vision documents. Simultaneously, other states such as Uttar Pradesh, Tamil Nadu, Goa, and Uttarakhand are independently shaping their own economic destinies. Aligning these state-level visions with the national agenda presents a challenge, and NITI Aayog is actively seeking solutions. Initial projections from NITI Aayog’s forecasting paint a promising picture for India’s future. By 2047, India’s exports are estimated to reach an impressive $8.67 trillion, while imports are expected to total $12.12 trillion. Furthermore, the think tank envisions an increase in India’s average life expectancy to 71.8 years and a literacy rate of 89.8%, representing substantial progress from 2021. The year 2047 is envisioned as a transformative period for India, marked by increased urbanization, shifts in lifestyle, evolving employment dynamics, and alterations in governance structures. Subrahmanyam underscores the necessity for radical governmental restructuring both horizontally and vertically, prioritizing the delegation of implementation tasks to lower levels to free up senior officials for strategic planning. Lastly, it is worth highlighting that the government has enlisted the expertise of the consulting firm BCG to assist in shaping the ‘Viksit Bharat @ 2047’ document. This visionary document, originally conceived by Prime Minister Modi in December 2021, is set to chart India’s course toward a prosperous economic future. Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
Many of us are familiar with the terms of service agreements appended to the software we use, but do you really read them? Or is it easier to just click through and use the app? Lots of us are also interested in using virtual private networks (VPNs) to protect our browsing and search histories, and those people perhaps have a heightened sensitivity over how their personal data is used. More than 270,000 Australians downloaded Facebook parent Meta’s “Onavo Protect VPN”, which was promoted as “Keep[ing] you and your data safe”. But these representations did not match up with the terms of service and how the data was actually used, and shows how these representations can come back and bite the companies issuing them. Court ruling: False and misleading conduct In July this year, the Australian Consumer and Competition Commission (ACCC) won its lengthy court battle against Facebook Israel and Onavo Protect, subsidiaries of Meta. Meta was slapped with a $20 million fine as a result of the court’s ruling. At the heart of the case was the terms of service agreement – which ran to 12 pages, had no summary and required users to click a separate link to understand how their data would be used. Overall, it did not adequately disclose that Onavo and Facebook collected users’ browsing data through the VPN and disclosed it to Meta for commercial exploitation. The judgement found the companies’ failure to notify Australians about the commercial use of their personal data deprived consumers “of the opportunity to make an informed choice about the collection and use of their data.” The data, which along with browsing history also included app usage, was distributed to Meta in aggregated and anonymised form. It’s arguable that the data was not personal information because of this aggregation and anonymisation. However, the regulator took issue with the claims made about the app and the collected data, which its maker said would only be used to provide the Onavo Protect VPN and nothing more. ACCC Chair Gina Cass-Gottlieb expressed concern that consumers “seeking to protect their privacy through a [VPN] were not told clearly that in downloading and using the app they were actually facilitating the use of their data for Meta’s commercial benefit.” Takeaways for businesses who collect personal information Data harvesting is widespread. Many companies ask for personal information, but some keep it beyond its useful life, leaving themselves open to data breaches. The Medibank and Optus hacks, which affected millions of Australians, demonstrate what happens when companies hold onto personal information that’s outlived its usefulness. Also, importantly, businesses asking for and storing consumer’s personal information for commercial purposes must, as the Meta case makes clear, ensure the claims they make about the use of that data are true in every sense. They otherwise face substantial penalties for engaging in misleading conduct, particularly in their headline claims about the product. This also means providing a user agreement and summary that’s easy to understand and explicitly outlines how and why data is used, what type of data is collected and where it will be stored, along with clauses for aging out old data, is vital. As the Meta case shows, companies should not rely on redirecting consumers to another website to inform them of how their data is being used. Finally, organisations must take care around the collection and use of personal data. Making sure they do not misrepresent the purposes of collection, use and disclosure is critical, as claims around privacy can easily turn into misleading and deceptive claims under Australian Consumer Law. Disclaimer The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future. Emily Booth, Special Counsel, Holding Redlich Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
Biometric authentication tools are gaining popularity as they bolster security across diverse business environments, including small and medium-sized enterprises (SMEs). In this week of Tech Tuesday, we discuss seven biometric authentication solutions tailored for SMEs, each accompanied by pertinent details: greenID by GBG GBG’s greenID leverages AI-powered facial verification and an innovative liveness detection feature to thwart spoofing attacks. It functions by swiftly comparing a customer’s facial biometric data from their selfie image with the portrait photo on their presented ID document to establish an almost instantaneous match. During this process, greenID employs passive liveness checks in the background to differentiate real-time selfies taken by genuine individuals from fraudsters attempting to use pre-existing photos or videos for spoofing. This passive liveness detection negates the need for additional gestures or video capture steps. GBG’s industry-leading identity verification and facial biometrics technology, combined with their expertise, empower customers to streamline digital onboarding, provide a seamless user experience, and instill trust for secure and swift online transactions. Daon TrustX Daon’s TrustX is a cutting-edge cloud-native SaaS-based identity continuity platform enriched with AI and ML capabilities. It features a no-code orchestration layer that facilitates rapid deployment and customization of user journeys. This platform aligns with the principles of identity proofing and authentication while ensuring full regulatory compliance. Designed to run on AWS, TrustX encompasses the necessary tools and scalability to emerge as the next-generation SaaS-based customer identity management platform for any business. New features include rapid implementation and deployment of workflow processes, a no-code orchestration layer with tools for crafting and adjusting customer journeys to meet specific business requirements, and 3rd-party compatibility for seamless integration into user journeys. BioConnect BioConnect specializes in providing biometric authentication solutions for businesses of all sizes, with a strong emphasis on serving the needs of SMEs. Their portfolio includes diverse biometric modalities, such as fingerprint and facial recognition, offering SMEs the ability to fortify their access control and identity verification systems. BioConnect stands out with its cloud-based platform, allowing SMEs to seamlessly integrate biometric authentication into their existing systems. This cloud-based approach streamlines the implementation process, reduces infrastructure costs, and ensures scalability, all of which are essential considerations for SMEs. Their solutions can be tailored to align with the specific security and operational requirements of SMEs. BioConnect prioritizes security and user convenience, ensuring that implementing biometric authentication doesn’t disrupt daily operations. Idemia As a global leader in biometric technology and identity management, Idemia offers a comprehensive range of biometric solutions, including fingerprint, facial recognition, and iris recognition. These solutions can be customized to meet the unique needs of SMEs. Idemia’s extensive experience in identity verification and authentication positions them as a trusted choice for businesses seeking robust security measures. Idemia’s offerings are highly customizable, ensuring that SMEs can implement biometric authentication in a way that aligns with their specific operational and security requirements. The company’s global expertise adds to their credibility and makes them a reliable partner for SMEs looking to strengthen their security measures. NEC Corporation NEC Corporation is a prominent provider of biometric access control and identity verification solutions, offering various biometric modalities, including fingerprint and facial recognition. Known for their accuracy and reliability, NEC’s products are an excellent choice for SMEs seeking to enhance security and authentication processes. NEC’s solutions are scalable, adapting to the evolving needs of SMEs as they grow. The company also places a strong focus on data protection and compliance, ensuring that businesses can handle sensitive data with confidence and in accordance with applicable regulations. ZKTeco ZKTeco specializes in biometric access control and time attendance solutions, catering to the unique requirements of SMEs. Their product offerings include a range of affordable biometric devices, such as fingerprint and facial recognition systems. A key highlight of ZKTeco is their commitment to providing cost-effective solutions that do not compromise on security. This affordability makes them an attractive choice for SMEs operating on tighter budgets while still prioritizing security. Suprema Suprema is a leading provider of biometric access control and time attendance solutions, offering fingerprint and facial recognition devices. Their solutions are designed with an emphasis on ease of use and integration, making them an ideal choice for SMEs looking to enhance security and convenience. Suprema’s comprehensive solutions cover various aspects of access control and time attendance, ensuring that SMEs can efficiently manage these critical aspects of their operations. The company’s reputation for reliability adds to their appeal for SMEs seeking trustworthiness in their biometric authentication solutions. Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
Australian not-for-profit organization Banksia Academy, has launched a “Workplace Hub” aimed at providing support to women and non-binary survivors of domestic and family violence (DFV) within the workplace. The Hub offers a range of resources, including training, education, employment pathways, mentoring, and peer support, with the goal of helping survivors thrive at work and in life. The program recognizes that only a third of women disclose their experiences of DFV to their employers or HR departments. In addition to support for survivors, Banksia Academy’s Workplace Hub also offers tailored training for organizations to better support employees dealing with DFV. The launch comes as statistics show the significant impact of DFV on employment, career progression, and workplace performance. Banksia Academy’s initiative aims to provide a vital lifeline for those affected by DFV and create more supportive workplaces. The Workplace Hub is available to businesses Australia-wide and the fees generated support the organization’s work in helping women survivors of DFV. The impact of DFV lives long beyond the crisis phase and can negatively impact survivors emotional, psychological, and physical wellbeing, while also impacting career progression and opportunities, ability to concentrate at work, productivity levels, punctuality, and workplace relationships. If the appropriate workplace support and understanding is not available, these factors can have a domino effect, leaving women vulnerable to impacts on their employment, financial security and wellbeing. Founded in 2022, Banksia Academy launched its virtual online platform providing training, education, employment pathways, and a program of wrap-around support for women survivors of domestic and family violence seeking to return to work. Furthering the mission to support survivors to thrive again, Banksia Academy’s Workplace Hub has the unique capacity to support women anonymously to their employer, in circumstances where the research suggests that only a third of women are likely to disclose their experience of DFV to a manager or HR. The solution combines the benefits of peer-based support with tangible learning opportunities across both personal and professional development including: Access to online courses from Banksia Academy’s global university partner, including its signature Working Wisdom program designed to support women specifically with the personal and professional development to thrive at work and in life as they heal and rebuild; Fortnightly live virtual masterclass akin to ‘Meet the Expert’ webinars – to provide guidance and support from experts like family lawyers, financial planners and child behavior/parenting experts; A national online mentoring program – matching survivors with a trauma-informed mentor to support with career progression goals and build networks; Weekly facilitated virtual Coffee Club to connect, learn and share; Weekly virtual guided meditation/wellbeing sessions – lunchtime spaces to center and re-group. In addition to the virtual support available for survivors, the Workplace Hub also offers tailored training for organisations to better support women employees dealing with DFV, including workshops, consulting (Policy & Practice), group coaching, first responder and team leader training through its network of training experts. Banksia Academy founder Melanie Greblo said, “62% of victim-survivors are employed and the meagre data available suggests that in any one Australian workplace, up to 20% of women employees have lived experience of DFV. The ongoing challenges women face both in leaving and in the re-building phase of DFV continually place women in positions of vulnerability. The need for ongoing support in the workplace is vital and it’s time for workplaces to be even more proactive in their response. The launch of Banksia Academy’s Workplace Hub helps women survivors thrive at work, supporting them to not only maintain their employment, but progress their career where it would otherwise risk being stalled or de-railed.” Despite the best intentions of many workplaces, evidence and research suggests that women with lived experience of DFV are still not getting the tangible support they need in the workplace. The Workplace Hub offering provides a Community as a Service model to employers to better support their employees with lived experience, with outsized positive impact across gender equality, inclusion, and employee experience. Greblo continues, “I created Banksia Academy because my own lived experience had disastrous impacts on my work and hence financial security. I knew that if this was a challenge for me, that other women who had less support than I did, must be drowning out there. And that’s exactly what the data tells us.” The statistics: Over 83% of victim-survivors reported that their job was impacted by their experience of DFV and for those impacted, 1 in 2 victim-survivors reported that DFV negatively impacted their career progression and opportunities 2 in 3 reported that DFV impacted their ability to concentrate at work 2 in 5 reported that DFV impacted their productivity 1 in 3 reported that DFV led them to socially withdraw from co-workers 1 in 3 reported that DFV negatively impacted their employment status 1 in 4 reported that DFV impacted their relationships at work 1 in 4 reported that DFV impacted their punctuality for work 1 in 4 reported that DFV “significantly” impacted their ability to undertake their job Chris Regan, Board Member of Scriibed – Banksia Academy’s sister company providing direct employment opportunities for vulnerable women in the digital economy – said, “In my career in CPO roles, I have unfortunately witnessed the impact of domestic violence on employees. Women in particular are conditioned to put on a brave face in a work environment and are therefore unlikely to reach out for support. Access to the Workplace Hub will provide life changing support for employees living with domestic violence. The Hub offers access to confidential, specialist support for those that need it. I see it as a necessary extension of EAP services for progressive organisations who value their people, diversity, equity and inclusion. It just makes good business sense! The cost of replacing talent is far higher than investing in retaining them.” Banksia Academy’s Workplace Hub is a paid program which is now available to businesses Australia-wide via www.banksiaacademy.org/workplace-hub. The money generated through the Hub’s fees goes straight back into the incredible work Banksia Academy does for women survivors of DFV. For every
CreditorWatch has released a comprehensive report titled ‘Navigating the stormy seas of the commercial property market,’ providing invaluable guidance to commercial landlords and investors to tackle market challenges and mitigate tenant insolvency risks. This in-depth analysis delves into the complexities of the Australian commercial property market, examining risks across major asset classes like office, retail, and industrial sectors. The report features insights from industry experts, covering tax liabilities, industry insolvency risks, and strategies for minimizing the impact of insolvent tenants, such as rigorous tenant screening, extended lease terms, and diversifying the tenant mix. This comprehensive guide offers insights into the current conditions of the Australian commercial property market and provides valuable advice for commercial landlords and investors, particularly in managing significant risks such as tenant insolvency. The report outlines the risks associated within the commercial property market for key asset classes including the office, retail, and industrial sectors. As set out in the report, asset classes within the Australian commercial property sector have experienced varied impacts due to the impacts of the COVID-19 pandemic and the shifting economic landscape. Stay-at-home restrictions have had lingering negative effects on office and retail sectors, whereas the industrial sector experienced boosted demand due to the online retail boom. Key observations in the report include: Office The office sector, especially in Sydney and Melbourne CBDs, faces significant challenges due to increased vacancy rates caused by factors including new completed buildings and changing tenant needs. As remote work becomes more common, with many employees working from home on certain days, physical vacancy rates are higher than official data indicates. This lack of occupancy has broader implications for the commercial property market, affecting CBD retailers and hospitality outlets. Retail The retail sector, which had already been adapting to online retailing, was relatively well-prepared for the pandemic’s disruptions with shopping centre owners diversifying tenant types and embracing experiential retail. While online shopping surged during the pandemic, it has reverted to pre-COVID levels, and consumers have eagerly returned to physical stores. However, the current challenge in this sector is economic, with interest rate increases affecting consumer spending, particularly in the discretionary homewares sector. Australian consumers are still dining out consistently, but rising costs in labour, food, energy, and interest rates are posing a significant challenge for food and beverage operators. Industrial The industrial sector remains robust with strong demand despite a slowdown in online shopping. Rental growth, which initially outperformed other commercial property sectors due to high demand for warehousing and distribution centres during COVID-19, is now receding but still positive, making industrial property highly sought after by commercial property owners. CreditorWatch’s CEO, Patrick Coghlan, says “Inflation is high and interest rates are 400bps higher in Australia than their historic lows during the pandemic. This is causing business conditions to be extremely challenging for many sectors, in particular food and beverage and construction.” To help commercial landlords and investors overcome the complex commercial property environment, the report offers insights from industry experts such as CreditorWatch Chief Economist, Anneke Thompson, businessDEPOT Special Counsel, Brendan McGrath, and Jirsch Sutherland Managing Partner – Queensland, Chris Baskerville. They discuss the current state of tax liabilities and industry insolvency risks, as well as strategies to help minimise the impacts of an insolvent tenant, including thorough tenant screening, extensive lease terms, and diversifying tenant mix. CreditorWatch’s ‘Navigating the stormy seas of the commercial property market’ Guide is now available in full here. Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
The rapid growth of online shopping has seen the retail industry undertake a series of transformations, and this year overall pre-holiday spending forecasted to be $66.8 billion, on par with last year trading boom. As we are heading to the most important period of the year for businesses, engaging consumers in the right way is more important than ever. With ongoing inflation and financial instability, consumers are expected to exercise caution in spending and mindful of their budgets. Understanding the challenges and opportunities this presents to Australian business is key to be in pole position ahead of this festive season. That said, the holiday shopping will continue to be an annual tradition for Australian families, and there is plenty of fertile ground for e-tailers to experiment with new approaches that can help grab their customers’ attention. Here are three key trends that businesses may consider leveraging in order to sharpen their e-commerce offerings: Make Holiday Shopping Entertaining with Virtual Experiences Shopping is no longer just about transactions; it’s an experience and holiday shopping can be a stressful task. In the digital realm, the lines between shopping and entertainment are continually blurring. Australia is the eleventh largest e-commerce market in the world with AU$46 billion in revenue in 2021. The Australian e-commerce market grew by 15% in 2021, contributing to the 15% global growth rate. . This is only expected to surge in the coming years, with 8.9% year-on-year growth in 2022. As Australian households seek out online shopping options, the concept of “shopatainment” has emerged, capturing the attention of younger consumers, especially Gen Z, the digital natives. Incorporating elements such as gaming, virtual experiences, and events with influencers into your online store can make shopping a more engaging and enjoyable activity for your customers when they’re purchasing their holiday gifts. Sell via Live Stream – Embrace Conversational Commerce Live streaming shopping, known as conversational commerce, has gained significant traction and is a powerful way for online businesses to connect directly with their audience. Although this trend is not limited to a specific demographic, Millennials, in particular, have embraced live video shopping, turning it into a thriving industry in Australia. Whether featuring celebrities, influencers, or everyday users of products, live streams offer a unique opportunity to build a community and drive sales. Jump on the Social Commerce Bandwagon Your online business should extend beyond your website. Customers today expect to shop and engage with brands on various social media channels, including Facebook, Instagram, and TikTok. The rise of social commerce is undeniable, with the market expected to grow to $604.5 billion by 2027. It’s not just about social campaigns; it’s about discovery-led shopping that influences consumers to make transactions directly through these channels. Utilise features like tagging social posts to create shoppable content or leverage temporary features like stories on platforms, such as Facebook or Instagram to enable seamless transactions with a few taps. The digital transformation of retail is no longer a choice; it’s a necessity to meet consumer demand this festive season. Removing international borders from the equation and leveraging e-commerce platforms enables small businesses to access new markets. To succeed in this new era, you need flexible shipping, courier, and express delivery services. The retail landscape will continue to undergo major shifts, even once the holiday season has concluded, and small businesses have the opportunity to thrive by embracing these trends. Make shopping entertaining, connect with your audience through live streams, and tap into the power of social commerce. With the right strategies you can position your small business at the forefront of the holiday season. Transport and logistics providers are here to support With e-commerce set to take a growing proportion of total consumer spend it is imperative to partner up with a trust-worthy and reliable transport and logistics provider who can support your business with a broad portfolio of shipping solutions to match your specific shipping needs. FedEx e-commerce offerings and a wide range of digital tools help provide simple, streamlined solutions to make order fulfilment easier, and enable SMEs to ride this wave of growth and remain competitive. Disclaimer: The information in this article is of general nature only. It is not intended to address circumstances of any specific entity or individual. Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
Recent Xero data reveals the ongoing resilience of Australian small businesses despite a deceleration in sales and wages growth. Sales growth remains stronger compared to other XSBI markets. Xero, the global small business platform, has released its most recent data from the Xero Small Business Index (XSBI) for the period spanning July to September 2023. Key points for the September quarter: Sales growth averaged 6.2% year-on-year for the September quarter. Wages growth averaged 2.7% year-on-year for the September quarter. Jobs growth averaged 2.7% year-on-year for the September quarter. Small businesses had to wait an average of 22.9 days to receive payments in the September quarter. Sales growth has shown a gradual slowdown, rising by only 5.5% year-on-year in September and averaging 6.2% year-on-year in the three months up to September. This indicates that sales are now growing below the pre-COVID average of 7.8% year-on-year. Encouragingly, Australia’s sales growth surpasses the results of the five XSBI countries, including Australia, New Zealand, the United Kingdom, the United States, and Canada. “Despite a slight drop in small business performance in recent months, Australian small businesses exhibit remarkable resilience, considering the challenging economic environment marked by high interest rates and persistent inflation. Notably, sales growth in Australia outpaces other XSBI markets,” stated Louise Southall, Xero Economist. The Small Business Index has remained relatively steady, declining by two points in September to 121 points. For the three months leading to September, the Index averaged 122 points, only slightly lower than the first half of 2023, which had an average of 127 points. The health care sector saw the most robust sales growth in the three months to September (+13.2% year-on-year), followed by education and training (+10.5% year-on-year), construction (+8.1% year-on-year), and public administration and safety (+7.7% year-on-year). The weakest industries included agriculture (-6.2% year-on-year), wholesale trade (-1.1% year-on-year), and retail trade (-0.8% year-on-year). All Australian states and territories reported slower average sales growth in the September quarter, with Queensland showing the highest increase at 7.5% year-on-year, while Tasmania exhibited the lowest growth at 2.8% year-on-year. Wages growth has further decelerated, reaching only 1.9% year-on-year in September. The hospitality sector saw the most substantial wage increases (+4.4% year-on-year), while health care had the smallest (+1.8% year-on-year). These results, while positive for inflation and cost control in small businesses, pose challenges for sales growth as real wages continue to decline, putting additional pressure on household budgets. Job growth remained steady, with a 3.0% year-on-year increase in September, similar to the pre-COVID average from January 2017 to December 2019. In the three months leading to September, health care experienced the highest job growth (+8.0% year-on-year), while hospitality (-0.5% year-on-year) and real estate (-1.0% year-on-year) saw job losses. Tasmania was the only state with a decline in jobs (-0.4% year-on-year), while Western Australia (+6.0% year-on-year), South Australia (+4.0% year-on-year), and Queensland (+3.4% year-on-year) led in job gains. Small business payment times have remained relatively stable in Australia throughout the year, with payments to small businesses averaging 6.5 days late. However, payment times varied significantly across industries, with health care businesses experiencing the shortest delay, averaging only 1.9 days late in the three months to September, compared to wholesale trade (12.5 days) and education and training (9.5 days). “In spite of the challenges faced this year, Australian small businesses are holding their ground and even thriving in some sectors. With the holiday season approaching, we encourage Australians to support small businesses in any way they can, whether through shopping small, leaving positive reviews, or connecting with business owners. Retail and hospitality, after facing a few difficult months, are hoping for a resurgence during the festive season,” commented Will Buckley, Country Manager at Xero Australia. Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
A recent ruling by the Fair Work Commission has brought the issue of repudiation into the spotlight. The ruling serves as a useful reminder that employers have the option to accept an employee’s repudiation when an employee abandons employment, as opposed to proceeding with dismissal. The case that brought this issue to attention was Muhammad Ali Quereshi v Spotless Services Australia Ltd 2023 (FWC 2411). The applicant worked as a full-time security guard for Spotless when he was, unbeknownst to his employer, arrested by South Australian Police and remanded in custody for 23 days before the charges were dropped and he was released. While in custody, he was not allowed to access the internet or his mobile phone and was only permitted to speak with ‘nominated’ people. Because of this situation, he was unable to contact his employer to make them aware of what was going on. Respondent asks employee to ‘show cause’ Spotless attempted to contact the staff member each time he didn’t show up for a shift, and after failing to attend five rostered shifts, a show cause letter was sent. This letter advised that his failure to report for work or explain his absence may be considered abandonment of employment and would lead to termination. After missing a sixth shift, Spotless let him know his conduct was considered a repudiation of his employment contract and, as such, Spotless accepted the repudiation. When he was released from custody, the employee made multiple attempts to contact his former employer to explain his absence and ask for reinstatement, but this was met with an unsympathetic response from Spotless, which simply resent the letter stating he had repudiated his employment. Repudiation of a contract is determined objectively The former employee brought an unfair dismissal claim against Spotless, but the Fair Work Commission found Spotless had discharged the onus of establishing the former employee was not ‘dismissed’ within the meaning of section 386(1)(a) of the Fair Work Act 2009 (Cth). While the FWC accepted the former employee did not mean to miss work and made reasonable attempts when in remand to notify his employer of the situation, the FWC also found the question of whether there has been a repudiation of employment contract is determined objectively. At the heart of the FWC’s ruling is the fact it’s unnecessary to show a subjective intention to repudiate. Simply failing to attend multiple shifts without approval, prior warning or a timely explanation showed the former employee’s inability – although unintentional – to uphold substantial performance of the employment contract. A ‘regrettable’ situation The FWC described the case as both regrettable and fortuitously rare, as neither the employer nor the former employee was at fault. Spotless’ response of reissuing correspondence was found by the FWC to be ‘harsh’, however as it happened after employment had ceased, it was irrelevant to the case. The FWC also stated it would be consistent with public policy for corrective services to find out if a person taken into custody needed assistance to inform their employer about their situation. The importance of employers making decisions about ending employment with “as accurate and timely information as possible” was also highlighted. The key steps for employers when an employee has repeatedly failed to attend work without explanation include: Alerting the employee to their obligation to attend work Taking reasonable steps to find out why the employee has not attended work Providing an opportunity, otherwise known as ‘show cause,’ to explain their absence. Having taken those steps, if the employer reasonably forms the view that the employee has abandoned their employment and elects to accept the repudiation, the employer should notify the employee of the acceptance of the repudiation. It’s also important for employers to know that acceptance of repudiation does not constitute ‘dismissal’ at the initiative of the employer for the purposes of the unfair dismissal protections under the Fair Work Act. Finally, it’s unnecessary to prove, as the Spotless case demonstrates, that an employee subjectively intended to abandon their employment. Disclaimer The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future. Lara Hues, Special Counsel, and James Sofianos, Graduate, Holding Redlich Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
Here’s a recap of recent funding developments from Australia, India, the US and beyond. LifeBid secures $1.45 million through crowdfunding LifeBid has triumphantly concluded a $1.45 million equity crowdfunding initiative in collaboration with Stride Equity, Australia’s inaugural venture-backed equity crowdfunding platform. The funds raised exceeded the initial target of $1 million, encompassing $820,000 from crowdfunding investors, outperforming the $370,000 objective. This initiative drew participation from 147 new investors, predominantly hailing from the financial sector, including some of Australia’s largest advisory firms. Australia unveils its largest renewable hydrogen funding program Australia has now initiated the expressions of interest (EOIs) for the Hydrogen Headstart Program, the largest-ever Australian Government-funded program dedicated to renewable hydrogen. This program is set to allocate up to A$2 billion in revenue support for large-scale renewable hydrogen projects. Australia has a vast pipeline of over 100 hydrogen projects, with a focus on investing in public infrastructure, low-emissions technologies, and the establishment of global hydrogen supply chains. The EOIs will remain open until November 10, 2023. Only Australian companies are eligible as lead applicants for funding, although international investors can collaborate with Australian firms to form project consortiums. Austrade is available to facilitate connections between investors and Australian project proponents, and you can meet the Austrade team at Booth C12 during the APAC Hydrogen Summit in Sydney from October 26 to 27, where you can gain deeper insights into Australia’s burgeoning hydrogen industry. Medtech Heidi Health raises $10 million in series A round Heidi Health, a medtech company with a focus on general practitioners (GPs), has successfully secured $10 million in a Series A financing round. Blackbird Ventures once again took the lead in this round, with backing from Hostplus, Hesta, Wormhole Capital, Archangel Ventures, Possible Ventures, and Saniel Ventures. Heidi Health, previously known as Oscar, had previously raised $5 million in a Seed round led by Blackbird. The company’s software platform employs artificial intelligence (AI) to streamline clinical administration for GPs. This fresh injection of funds will be directed towards expanding their team of doctors, designers, and engineers, developing new AI-based products, enhancing clinic growth, expanding their GP customer base, and eventually venturing into the global market. Presently, over 30 clinics and more than 100 GPs are already utilizing Heidi Health. Outstaffer raises $1.5 million in its maiden fundraising round Outstaffer, an HR tech platform designed to assist businesses in the recruitment, equipping, and payroll management of their staff, has raised $1.5 million in its inaugural external fundraising round after three years of bootstrapping. This round was co-led by the startup’s new Chief Operating Officer, Michael Locaso, who previously served as the COO of Listing Loop, along with participation from Utiliti Ventures, 1in100 Ventures, and Side Stage Ventures. Several other venture capital firms, including Beachhead and Mondo Ventures, as well as Alua Group, Spring Capital, and Perth corporate advisor John Poynton, also contributed to the fundraising effort. A $50 million property fund to streamline US investments for Australians Distinguishing itself from existing alternatives, the Cornerstone International Property Fund offers both retail and wholesale investors an uncomplicated route to American real estate, all while obviating the requirement for investors to pay American taxes or establish foreign entities. This innovative fund seeks to transform investment prospects for individuals aiming to diversify their portfolios, with a mere AU$50,000 as the minimum investment and a 12-month investment commitment. This pioneering fund is the brainchild of Lindsay Stewart and Michael Eagar, both based in Melbourne and boasting a wealth of experience and a successful track record in the US property market, funds management, and financial planning. India aims to foster 15,000 Startups by 2030 The Industries Department of the Delhi government has unveiled an ambitious draft of its startup policy, with a target to foster and empower 15,000 startups by the year 2030. This comprehensive policy package encompasses collateral-free loans, expert guidance, and dedicated support for college students. Under the visionary Delhi Startup Policy, the aim is to transform the city into a global innovation hub and the ultimate choice for startups worldwide. The policy aspires to create a nurturing ecosystem for innovation-driven economic growth and promote entrepreneurship through robust support mechanisms. Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.