Internet shopping has revolutionised the retail property sector, with vendors, buyers and their agents increasingly becoming aware of its convenience and influence.
As new generations of technology boomers go online, owners and retailers should adapt to the changing scenario.
Retailers are under threat and hence must become smarter to remain relevant and profitable. They should also get more service-orientated and offer shoppers incentives to retain their interest. Trends are changing fast and consumer buying and selling behaviour impacts on retail success.
Retail revolution
We are in the middle of a retail revolution. Mobile devices such as phones and tablets are the game changers. It is therefore important to keep pace with the changing times and continue to compete with quality properties and services.
Retailers must also develop strategies that extend beyond the online selling tool and put in place processes that drive meaningful connections between the brand and consumer.
Social websites such as Facebook, Twitter and MySpace have become major public platforms and as such those using these would help companies and those in property business to reach wider audiences. Those confined to traditional methods of retailing will lag and eventually fade away from the market.
Online marketing
Online marketing accounts for about 5% of retail sales in New Zealand compared to 6% in Australia. Although small now, the growing versatility of handheld mobile sets and tablets will encourage innovative real estate marketing in the coming years.
‘Click and Collect’ is a process in which products are purchased online and are picked up from a retail outlet. I have known one retail shop in Brisbane which charges a small fee (A$5) for just browsing through the physical shop if they do not purchase anything.
However, this may not be the best choice to attract customers.
The challenges
Landlords with retail property are faced with challenges as well.
Property Investors now realise that gone are the days when they could simply rely on continuous rental income. Tenants facing financial woes would soon become a problem for the property owner, especially in the case of retailers relying on walk-in traffic.
It is therefore essential to choose your investment property wisely because technology is here to stay with constant changes.
Video and music stores have changed the way we shop. You can now rent a DVD at a kiosk like a vending machine. Customers can choose a movie for just A$2 (in Australia) by simply entering their email address and credit card details at the kiosk.
Online shopping has become popular with supermarkets, with some of them offering free delivery.
Mahesh Ranchhod is a Director of the Ranchhod Group of Companies based in Auckland. Phone: (09) 3031353 Mobile: 021525569; Email: m.ranchhod@xtra.co.nz Website: www.ranchhodgroup.com
The Group incorporates New Zealand and Australian Companies and Trusts designed to invest in commercial properties and manage them in Australia and New Zealand. The above article should be taken only as a guideline and not as specific advice. Mr Ranchhod absolves himself along with the management and staff of Ranchhod Group of Companies and Indian Newslink of any responsibility or liability that may arise from the above article. Readers should seek professional advice before acting upon any information contained above.
The Ranchhod Group is the Sponsor of the ‘Business Excellence in Retail Trade’ Category of the Indian Newslink Indian Business Awards 2014.
