Management Blog

Online shoppers prefer local retailers

Despite some retailers' fears that Australians are buying up big on overseas websites, a new study reported by news.com.au suggests local online shopping websites are doing a roaring trade.

A new Nielsen study has found seven of the 10 most popular retail websites visited by Australians are local, with Woolworths, Dick Smith, Officeworks and Kmart all proving popular destinations.

The findings support a study by the Australian Communication and Media Authority that found 68 per cent of Australians use local sites because they believe overseas online retailers are a security threat.

Nielsen researchers claim travel was the most popular item purchased, with homewares and auto accessories coming in second and third.

Australian-made goes digital

Consumers who are focused on buying local products now have an app to streamline their shopping experiences.

Marketing magazine reports that the Australian Made, Australian Grown campaign, aka AMAG, has launched an app that maps out supermarket chains and shopping strips to indicate local products.

A not-for-profit organisation, AMAG says an overwhelming majority of shoppers prefer to buy locally made products but have difficulty tracking them down.

The app, which AMAG hopes will be of particular interest to younger consumers, is said to deliver up-to-date and reliable product information as well as access to promotional offers.

Growth industries for 2011

In Chinese astrology 2011 will be the year of the rabbit but for entrepreneurs it could turn out to be the year of the video game, organic produce or motorcycle, The Age reports.

According to business information researchers IBISWorld all three of these industries are set to expand as the year progresses.

Organic produce is tipped to grow in popularity as more Australians seek healthier food options, while the video game market is set to expand by 12 per cent as more adults embrace the gaming trend.

It's predicted motorcycle sales will increase by up to 7 per cent on last year's figures as an increasing number of men purchase bikes as affordable status symbols.

Some of the industries predicted to shrink in 2011 are professional photography and apple and pear farming as cheaper imports start to take their toll.

Online retail predicted to surge

New research suggests online spending is set to continues its growth spurt with e-retailing predicted to increase from $16.9 billion in 2009 to $33.3 billion in 2015, Smart Company reports.

According to the article, the Forrester Research study indicates online spending will expand from low price items and computer equipment to a wider range of products and services.

The study found 32 per cent of Australian adults currently purchase books, 23 per cent buy consumer electronics and 30 per cent order clothes and accessories.

The researchers say the predicted growth is further evidence traditional 'bricks and mortar' retailers can no longer afford to ignore the power of online sales.

Forrester claims online retail will grow by 1 per cent until the year 2015 with a number of large Australian retailers, including Westfield, David Jones and Big W, opening online stores.

The Government's NBN initiative is also identified as a trend that will push online retail by making high speed internet more accessible to a larger number of Australians.    

Is Australia an SME utopia?

A major international study suggests Australia is one of the best places in the world to start a new business, Smart Company reports.

The World Bank and International Finance Corporation study rated Australia as the second easiest country in the world to start a new enterprise (New Zealand was placed first).

According to the report, the ranking was based on the effort, time and expense required to legally establish a company.

Overall, Australia was placed tenth in the study's ease conducting business index and named the sixth easiest country in world to obtain credit.

The study was less complimentary about the nation's tax system. Australia achieved a placing of 48 for tax arrangements, a ranking fall from 44 for last year.

Micro-franchise plan to assist poor communities

Social organisation RUMA has developed an innovative 'business in a box' plan to help poverty stricken sections of the Indonesian population start their own telco franchises, Springwise reports.

According to the post, RUMA's first product is a telecommunication kiosk that allows franchisees to become mobile phone entrepreneurs by selling prepaid call time to his or her community.

To ensure the initiative is only assisting those living below the poverty line, all franchisees must undertake a questionnaire.

Springwise claims that after five months of operation over 1,600 micro-franchise businesses have been started with 90 per cent of these businesses run by women.

Australia's franchise sector is looking good

A new study suggests the franchise industry has outperformed other sectors of the Australian economy, PricewaterhouseCooper's Jason Daniels writes in a recent news.com.au article.

The company's Private Clients Franchise Sector Indicator suggests franchisor revenue increased by 12 per cent while profits grew by 18 per cent.

Franchisees experienced revenue and profit growth of 6 to 7 per cent, which, according to the Daniels, is about the twice the rate of the rise in the consumer price index.

On the back of these figures the sector is gearing up for further growth in the year ahead with revenue rises of 13 per cent and profit increases of 18 per cent predicted.

But PricewaterhouseCoopers claims expectations of continued success can only be achieved if two key issues – the process of finding suitable franchisees and funding – are tackled appropriately.

The insight of monkeynomics

Could research into the way monkeys behave hold clues as to why the global financial crisis took place?

It's a distinct possibility according to primate researcher Laurie Santos who has conducted a series of experiments into 'monkeynomics' to highlight the odd choices humans often make.

In this TED Talk, Santos offers a fascinating insight into why humans (and monkeys) often have trouble learning from their mistakes.

Biggest skills shortage areas identified

A survey by the Australian Industry Group and Deloitte suggests 34.7 per cent of firms believe an impending skills shortage will hurt their operations in the year ahead, Smart Company reports.

Looking even further into the future, 47.5 per cent of survey respondents predict there is a high to extreme risk that recruitment issues will cause problems over the next five years.

While skills shortages are expected to affect all sectors, the AIG says occupations associated with the manufacturing, construction and engineering industries will experience the biggest demand.

Occupations that top the in-demand list are:

• Metal fitters and machinists
• Engineering professionals
• Metal casting, forging and finishing workers
• Structural steel and welding workers
• Business administration managers
• Sales people
• Clerical and administration staff

Business sectors to watch in 2010-11

If you're in the organic farming business your future is looking bright according to the IBISWorld's annual list of Australian industries set to perform well over the next financial year.

According to the list, organic farming will boom as Australians embrace the health benefits and green credentials of the sector and big business tunes into the possibilities.

Other predicted top business sectors are:

• Online information services – set to increase as more Australians embrace online digital media
• Insurance brokering – set to experience growth as Australian insurance carriers seek to recoup underwriting capacity lost on recent investment activities
• Mobile telecommunications carriers – Australians are hungry for mobile internet data as they continue to abandon landline based services
• Alternative health therapies – the country is starting to accept the possibilities of holistic approaches to health; greater insurance coverage for alternatives treatments will also see the sector grow

Via Australian Anthill