INTHEBLACK December 2021 - Magazine - Page 36
F E AT U R E
// H O L I D AY E C O N O M Y
Left: Leigh Williams
(seated) and James
Ellis, eStore Logistics
Above: Boxing Day sales draw a
crowd to Melbourne’s Chadstone
Shopping Centre.
SPRINT TO MARATHON
In Australia, retailers have traditionally
offered major discounts around a handful
of calendar dates, such as the June end of
financial year sales and the Boxing Day sales
the day after Christmas.
However, new retail discount occasions are
rapidly gaining ground, says Adam Ioakim,
managing director APAC at customer
engagement platform Emarsys. “The huge
sale events we’re seeing now out of Black
Friday are incredible, both online and offline,
particularly with the younger demographic,”
he says.
The changed retail sales landscape is not
without its risks, however. “Now we have
this constant discounting cycle, which
is dangerous for brands, because it can
cannibalise margins and devalue value
propositions.”
To create a loyal customer base, Ioakim
urges retailers not to rely solely on discounts.
Instead, give customers exclusive offers,
access to special events or the ability to join
exclusive communities. “You need a trusted
relationship, rather than just constant
discounts.”
Morgan says holidays are now tied to sales
and big shopping days, but the rise in online
shopping has changed the emphasis from
specific days to the entire holiday season.
“That means retailers have to focus on a
marathon of holiday shopping, not a sprint.”
36 ITB December 2021
DELIVER
THE
GOODS
... OR ELSE!
AS S H O P P I N G
I N C R E AS I N G LY G O E S
D I G I TA L , O N L I N E
R E TA I L E R S A R E U N D E R
PRESSURE TO DELIVER
O N T I M E , E V E RY T I M E .
Big spikes in sales around
specific shopping occasions
mean that much can go
wrong – servers can
collapse because of massive
traffic, logistics suppliers
may be overwhelmed with
orders and marketing
campaigns can backfire
if items are not shipped
quickly.
To capitalise on festive
sales, retailers should focus
on “in-the-moment testing”
and getting shopper
feedback to ensure they
are promoting the right
products at the right price.
Paul Soong, regional
director Australia and New
Zealand at logistics and
transportation software
company BluJay Solutions,
says that, while online sales
are a godsend for many
retailers, they mean
additional logistics pressures
as more consumers now
take the view, “I ordered this
product five minutes ago,
where is it?”.
Soong says that, aside
from adopting the best
technology platforms, the
key for retailers is to forge
strong partnerships with
logistics and transportation
companies to ensure the
smooth and reliable rollout
of products. “It’s about
making sure that you’re
able to deliver when you
say you can.
Third-party logistics
provider eStore Logistics
fulfils more than 20 million
sales orders a year for its
e-commerce and traditional
retail store clients. Managing
director Leigh Williams says
the past 18 months have
sent shockwaves through
the industry as consumers
have become more used to
shopping online and
receiving their products
quickly.
In response, eStore
Logistics has invested in
automated warehouses and
a fleet of more than 250
autonomous mobile robots
(AMRs) to significantly
speed up the stock-picking
process. “Undoubtedly, the
AMRs give us another gear
to kick into when the busy
holiday season starts to heat
up,” Williams says.
“However, what’s even more
phenomenal is that these
AI-powered robots are
constantly learning – the
more they work, the more
data they have access to
and the smarter they
become.”
Soong agrees that the big
sales surges around
Christmas and other major
traditional holidays are
flattening out and that there
are now “lots of little spikes
during the year” on the back
of events such as Amazon
Prime Day and Click Frenzy.
“Even celebrities and
influencers can cause sales
momentum in what has
become a crowded
shopping calendar.”