Retail assn chief plays down Amazon impact as launch nears

Association chief executive Dominique Lamb (below, right) said that while online retail shopping had been available for more than two decades, only 7.1% of the total consumer spend by Australian consumers last year was online.

"And 80% of that online spend with Australian retailers and online shops," Lamb said.

There is no indication yet of when exactly Amazon will open its doors to Australians, with no sign that a widely expected soft launch slated for Thursday eventuated.

{loadposition sam08}Lamb said experts were predicting that Amazon would ramp up operations quickly, but would struggle to gain a significant market share in the first five years.

This was due to the existing high retail concentration levels in Australia and the logistical issues that come with servicing such a vast country, she said.

But the retail association was taking the arrival of the American behemoth seriously.

"We have recently partnered with NORA, the , to provide our members access to those with the expertise to guide and support Australian online retailers interested in improving their online presence," Lamb said.

"This digital and technology push will ensure we have the best facilities to support Australian retailers, while continuing to advocate and provide legal support services to the industry."

But she talked down the prevailing impression that online would overwhelm bricks-and-mortar operations in Australia.

"Australian retailers are offering brilliant customer service across all their channels, with e-commerce being just one component of an overarching approach to individualised attention and building brand loyalty – it’s now virtually impossible to separate clicks from bricks in Australia because ultimately, shoppers want, and expect, to utilise both," she said.

"Shopping centres and malls have always been far more than just transactional environments, and are a crucial component in Australians’ socialising and entertainment activities, and we don’t expect that to change anytime soon simply because Amazon is launching.

"You just can’t replace the experience of bringing in your children to sit on Santa’s lap and deliver their carefully curated Christmas stocking wishlist!"

Lamb said that Amazon had built up its massive customer base by offering a wide range of goods at a low price, with speedy delivery and an incredibly convenient model.

"On the surface that sounds unbeatable! But on the flipside, I’m seeing more and more brilliant, smaller retailers offering something unique, special and a little bit out of the ordinary, and it’s something Amazon could never replicate nor compete with, and we’re confident there is a lot of opportunity for local retailers to retain their market share and enjoy a great spending period over the holidays."

She said customers were spoiled for choice, being able to get whatever they wanted, whenever they wanted it, and generally at a price they liked. "But they will also seek out retail experiences that make them feel special, and will build lasting connections with, and loyalty to, brands that have crafted a strong sense of identity and personality," she added.

Lamb advised every retailer, no matter the size, to back up their offerings with exceptional, personalised customer service, and to never take their foot off the pedal when it came to reliable and speedy fulfilment and delivery.

She said with Amazon's arrival, standard two-day delivery would get faster, so all retailers needed to be putting in considerable effort on fulfilment strategies.

"Retailers need to use a carefully-planned and slow-and-steady approach to using digital channels to build credibility, connection and loyalty, rather than trying to simply attract consumers’ attention to make sales," Lamb said.

"The difference is in being different – it’s crucial Australian retailers don’t try and imitate a behemoth like Amazon, but spend their time and resources enhancing what makes them different."