Retailers need to get digital

SYDNEY: Australian households are devoting more of their budgets to digital consumer goods than traditional basics such as clothing, according to a new report. An analysis by Commonwealth Securities (CommSec) shows consumers are spending an average of $12 a week on goods like cameras, iPods and televisions and an additional $14 on gadgets such as mobile phones.
According to Commsec economist Craig James, this has outstripped spending on essentials like clothing.
"A raft of products such as computers, mobile phones and televisions are constantly improving in speed and quality while at the same time prices are falling and we are buying more."
The Retail Doctor managing director Brian Walker agrees with James and said that clothing retailers need to invest more on interactive store environments.
"For every dollar people spend on convergence technology - which can bring together both information and entertainment- that's one less dollar they spend on clothing apparel and products. People are spending more on being connected which means retailers and boutiques need to start bringing that kind of technology in store."
Citing European fashion retailer Zara as a good example of this, Walker said the store provides consumers with an interactive booth which allows them to view the latest European catwalk shows.
"Stores like this are able to provide customers with an experience that goes well above and beyond putting stock on the racks. If boutique owners don't have a great amount of funds they can still bring some form of electronic mediums in store like a plasma screen."
Walker also believes that company webpages are a wealth of information for consumers and retails will reap the benefits of using one.
"Bringing convergence technology into the retail space is something that's becoming increasingly important. This research shows that certain sectors like retail are struggling to compete in a space which values interactive technology."