Expert Says There’s 6 Ways Aussie Businesses can Step Up Against Shein and Temu
While retail sales surpassed expectations during the Black Friday and Cyber Monday sales in November, overseas fast fashion cut price retail giants such as Shein and Temu continued to gain market share in Australia.
Mal Siriwardhane is calling on Australian retailers to step up and focus on the strengths that local retailers offer and to actively seek out local partnerships, connections and service offerings that shoppers value in order to galvanise their future against these monolithic international giants.
Mal Siriwardhane is the founder and CEO of B dynamic, Australia’s leading and fastest growing third party logistics provider and ecommerce enabler for the retail sector.
“The retail landscape is undergoing a seismic shift and Australian businesses must innovate and adapt to stay competitive. By leveraging their unique strengths, local retailers can carve out their own space in this challenging environment,” Siriwardhane said.
Strategies for survival and success
“Australians value service and they like talking to local support on the ground. If Australian retailers are going to maintain and grow market share and fend off the might of these international players they need to focus on local advantages,” Siriwardhane said.
“Retailers need to highlight their Australian identity by emphasising their local presence, sustainable practices and community engagement. Consumers are increasingly drawn to brands that align with these attributes and will share their wallet with these businesses because they like
the safety of the cultural connection and local proximity. In short, Aussies like doing business with other Aussies.”
Personalise the customer experience
“Local retailers need to personalise the customer experience to support Australian shoppers. Investing in tools and technology that allow and empower retailers to understand and cater to individual customer preferences is essential. Tailored marketing and personalised shopping experiences that exude Australian values is the ideal way to differentiate a retail brand in the market,” Siriwardhane said.
Strengthen digital presence
“Shoppers connect with imagery and movement. Local retailers are encouraged to develop user- friendly e-commerce platforms and maintain an active presence on social media. High-quality visuals, engaging content and responsive customer service online with a local flavour is a clever way to drive traffic and build loyalty,” Siriwardhane said.
Offer fast and reliable service
“International players are shipping at speed but local retailers have the advantage of proximity. Competing with retail giants requires matching their efficiency with even better delivery options and customer service experiences. I strongly urge Australian retailers to partner with reliable
logistics providers or explore same-day and next-day delivery options to meet customer expectations,” Siriwardhane said.
“A good third-party logistics provider is not only able to help reduce operational retail costs by up to 70 percent through efficiencies, technology, clever systems and economies of scale, they are also able to offer retail customers a level of service that creates a compelling and memorable brand experience.”
Diversify product offerings
“Many large international players offer similar products. A good strategy is to stock unique or niche products that global players can’t easily replicate. Collaborating with local artisans or exclusive suppliers can add value and uniqueness to a retailer’s inventory,” Siriwardhane said.
Build strong community connections
“Building strong community connections is essential. Local retailers are in the ideal position to engage with their local communities through events, sponsorships or partnerships. Building trust and loyalty among local customers creates a competitive edge against international retailers,” Siriwardhane said.
Empowering Australian retailers
“By embracing innovation, technology and customer-centric strategies, small and mid-size retailers can hold their own against global competitors. The key is to focus on what makes the business unique and ensure customers see that value,” Siriwardhane said.
“In the current market price is a strong driver of consumer motivation and choice however often it comes with risks especially if the retailer is overseas and located in a primarily non-English speaking country. Retailers can compete and win against global retail giants by adopting key strategies.”
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