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Retailing Market In New Zealand

The foreseeable future is expected to see mobile internet retailing becoming increasingly important in New Zealand. The leading players are thus set to focus on a multi-channel approach, with it being important to offer an internet retailing site that can easily be accessed via smartphones and tablets.

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Definition / Scope

The functions and activities involved in the selling of commodities directly to consumers. Retailers do not operate in a vacuum. The environment around us, competition in the market place, consumer shopping/buying behaviours, overseas trends and developments all impact on retail success or failure.

Market Overview

The functions and activities involved in the selling of commodities directly to consumers. Retailers do not operate in a vacuum. The environment around us, competition in the market place, consumer shopping/buying behaviours, overseas trends and developments all impact on retail success or failure.

Key Metrics

Metrics Value Explanation
Base Year 2016 Researched through internet


Market Risks

Recent cyber attacks indicate that retailers have become a coveted target for cyber criminals, hackers, and others.

Supply chain risks exist in New Zealand and there is low awareness of the risks in Kiwi companies.New Zealand’s supply chains are fundamental to our country’s economic success.Risk management requires anticipation of possible situations and development of responses to increase resilience.There is a possibility that New Zealand may not have a comprehensive framework in place for collecting data and information on emerging risks or the capability to benchmark, measure, report and review progress towards creating a resilient New Zealand.

Top Market Opportunities

Retailers must clearly demonstrate value and offer current products, reflecting local demographics and tastes.

With a growing trend in private label and exclusive products, retailers have greater control over their brands and are able to differentiate themselves, while enjoying higher margins. Growth and profits will eventually depend on increasing shopper frequency and offering a wide product range through multiple channels at the right time.

The leading players are thus set to focus on a multi-channel approach, with it being important to offer an internet retailing site that can easily be accessed via smartphones and tablets.

Retailers capture large volumes of data within the enterprise and from other channel sources and this data has grown exponentially. Consumers are sharing more data as well – preferences, opinions, tastes and current location. Using customer, merchandise and operational analytics businesses can access timely, relevant and useful decision making data across all customer channels. Retailers that analyse this data to better understand, engage and react to customer needs will win the battle in the marketplace.

Businesses must remember that each of these factors needs to be aligned with strategic goals.

Market Drivers

Popularity of internet retailing forces players to adapt multi-channel strategy investing heavily in driving internet retailing sales via easy-use shopping apps and online marketing.

A rise in retail rental rates and minimum wage levels had a heavy impact on some players. Within grocery retailers, convenience stores and independent small grocers also saw outlet volume decline as a result of this trend.

Grocery retailers’ digital footprint will expand in the years ahead as they identify new ways to engage and sell profitably through online channels. The big challenge for grocery retailers in this space is price.

Market Outlook

The foreseeable future is expected to see mobile internet retailing becoming increasingly important in New Zealand. The leading players are thus set to focus on a multi-channel approach, with it being important to offer an internet retailing site that can easily be accessed via smartphones and tablets. Online marketing is also expected to see growing investment in the foreseeable future. There will also continue to be a strong focus on price competition within many channels. In case of Grocery Retailers, Shopping apps are notably likely to see strong investment in the forecast period, with a focus on price comparison and offering ease of searching stock and shopping. Retailers will realize that they need to rely on data in order to get to know their customers and provide customized shopping experiences.

If retailers truly want to provide compelling shopper experiences, they would have to take more control of how their products are manufactured, marketed, and distributed. Retailers that localize their product mix and store formats will win.

Strategic Conclusion

  • Retailers capture large volumes of data within the enterprise and from other channel sources and this data has grown exponentially. 
  • Consumers are sharing more data as well – preferences, opinions, tastes and current location. 
  • Using customer, merchandise and operational analytics businesses can access timely, relevant and useful decision making data across all customer channels. 
  • Retailers that analyse this data to better understand, engage and react to customer needs will win the battle in the marketplace. 
  • With a growing trend in private label and exclusive products, retailers have greater control over their brands and are able to differentiate themselves, while enjoying higher margins. 
  • Growth and profits will eventually depend on increasing shopper frequency and offering a wide product range through multiple channels at the right time. 
  • Popularity of internet retailing forces players to adapt multi-channel strategy investing heavily in driving internet retailing sales via easy-useshopping apps and online marketing. 
  • A rise in retail rental rates and minimum wage levels had a heavy impact on some players. 
  • Within grocery retailers, convenience stores and independent small grocers also saw outlet volume decline as a result of this trend. 
  • Grocery retailers’ digital footprint will expand in the years ahead as they identify new ways to engage and sell profitably through online channels. 
  • The big challenge for grocery retailers in this space is price. 
  • Supply chain risks exist in New Zealand and there is low awareness of the risks in Kiwi companies.

It is good practice to view the understanding of the supply chain as a strategic advantage. There needs to be a conscious effort to obtain tacit knowledge about New Zealand's supply chain risks.

  • Ensure accountability for overall risk management.
  • Develop deeper understanding of risks in New Zealand.
  • Establish an independent resilience monitoring and reporting process.

Four capabilities should be developed by businesses:

  • Acuity is the capability to understand potential event risks and to identify when and how those risks might impact the business. Understanding the supply chain and its vulnerabilities helps businesses focus on how event risk might affect them. When a potential risk arises, businesses with highly developed acuity may be able to respond more rapidly, reducing the risk and protecting their competitive positions.           
  • Navigation  is the capability to make good decisions about what to do when an event occurs.   Defining the important roles for developing responses and rehearsing event management develops navigation capabilities.
  • Agility is the capability to make changes when they are needed.
  • Resilience is the capability of the organisation to respond to the shocks caused by events.

References

http://www.thefreedictionary.com/retailing

http://www.retailinstitute.org.nz/assets/2010%20New%20Zealand%20Retail%20Market%20Analysis.pdf

http://www.euromonitor.com/retailing-in-new-zealand/report

http://www.euromonitor.com/grocery-retailers-in-new-zealand/report

http://www.nielsen.com/nz/en/insights/news/2015/trends-shaping-the-future-of-grocery-in-nz.html

http://theregister.co.nz/news/2015/05/how-good-are-new-zealand-businesses-supply-chains

http://www.foodstuffs.co.nz/media/134687/20150501-supply-chain-resilience-report-final-low-res.pdf

http://mybusiness.com.au/marketing/four-key-steps-to-success-for-tomorrow-s-retail-leaders


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