Australian retail sales were on the rise again in 2015 and this year is even looking better with retailers upping their marketing spend to leverage ideal consumer conditions.
According to BDO partner and retail specialist John Bresolin, the 2015 Spend Trend report revealed some positive signs for Australian retailers, as the hold in interest rates and the lower Aussie dollar made shopping locally more attractive to consumers.
“Australian specialty retailers increased sales revenue by 5.3 per cent (approximately $1 billion) from 2014-15, however, this is in contrast to a 9.4 per cent increase by the international retailers,” he explains.
“To help increase their market share and help leverage consumer confidence, Australian retailers boosted their marketing spend by 35.7 per cent in relative terms, including investment in digital marketing to coincide with an increasingly mobile marketplace.
“Many retailers now employ dedicated social media staff or have appointed a digital marketing department to coordinate these efforts, with tools like Facebook, Instagram and YouTube being used heavily in key sales periods such as the lead up to Christmas.”
One of those retailers is Lush Cosmetics, which uses social media to drive engagement, provide fantastic customer care, discuss topical issues, drive brand loyalty and build trust, says brand communications manager Natasha Ritz.
“We are moving towards a more omni-channel approach by connecting messaging digitally and in stores, and we are always looking at opportunities to use technology to better serve our customers in whichever way they’d like to engage with us as a brand,” she says.
“Social media allows Lush to tell our story, share content and encourage conversation, not just about our brand or products but topical issues and deeper messages, to help build trust and relationships with our customers.”
Bresolin adds that the surge in social media use among Australian retailers has coincided with growth in online sales, with many recording significant double digit growth.
“However, they still have a long way to go if they are to match their international counterparts, whose online sales represent well in excess of 10 per cent of their total revenue.”
By Marion Gerritsen
