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In this year’s Christmas survey, we asked Australians what percentage of their Christmas gift spend they expect to be online, and what percentage they expect to be in store (from our results, 95% of Australians buy Christmas presents, so we only discuss these Australians). While these results would be influenced by the fact the sample was drawn from Australians already online, it is still surprising. (Note: over 75% of Australians have internet access).

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Changes at Directional Insights

Directional Insights Pty Ltd formally announces that Helen Bakewell has altered the ownership and management structure of the company.

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In store or Online, which rules Christmas?

In this year’s Directional Insights Christmas Survey, with an online sample of 1,000 people representative of the Australian population, we asked a few new questions to gauge Australian’s attitude towards Christmas. Two of these questions were attitudinal statements, where we asked people to indicate if they agreed or disagreed with a statement. The first question had six statements as follows:

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What do Australians expect out of Christmas

The second attitudinal statement question had statements that could be divided into a number of groups. These groups being ‘Christmas Decorations/events’, ‘Shopping Centres at Christmas’, ‘What Retailers can do at Christmas’ and ‘Giving Presents’.

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The Buzz

Who is Peter?

Many of our readers would have noticed some of the changes taking place at Directional Insights during the month of November.

The most noticeable and immediate change is that Helen Bakewell is now concentrating on servicing our clients’ needs under her new title of Founder, Principal Consultant, Consumer. Helen needs very little introduction as her work in the research, business and property industries is universally recognized.

My role as managing director will be to complement Helen in ensuring that Directional Insights are meeting or exceeding our clients’ expectations and to oversee and manage the growth of the company.

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When to spend

One of the big questions for retailers and shopping centre owners is: When does the Christmas buying season start. It is important to understand, so retailers know when to put on those enticing Christmas sales, shopping centre managers know when to put up those festive decorations, and so we all can know when to expect the rush of Christmas buying. Well, in the Directional Insights 2011 Christmas Survey we asked Australians when they do their primary Christmas shopping, and when they do their secondary Christmas shopping.

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Google, Spreets and Blogs-Retail word of mouth

Everyone knows that Australians are more connected to the internet now than ever before, with Smartphones, Wi-Fi, and the oncoming National Broadband Network poised to only increase this trend. It is not a trend that has gone unnoticed, with businesses, advertisers and retailers all jumping onboard.

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How can we sell more chocolate?

Last week I presented at the AMSRS Conference (Australian Market and Social Research Society) on shopping trends in Australia today. I had interesting bedfellows as I was placed in the FMCG stream (fast moving consumer goods). 

While I was talking about Australian’s frugal fever and the problems with fashion, my learned colleagues spoke about how they invent new breakfast cereals and the different emotional attachments consumers have to wholemeal crackers versus plain crackers. 

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How a perfume patch could reinvent retail

One of the big issues facing Retailers and Shopping Centre Owners at the moment is the pressing concern of online retailing, signalling changes in the way we shop that is not on the horizon, but is actually here. While this is heralding changes in retail, it is far from the foretold disaster that it is being made out to be.
In store retailing still accounts for over 95% of retail sales in Australia – so it is still the main game. The steps required to bring physical retailing back to the forefront of every Australian’s mind and ensure that online shopping is thought of as simply ‘AN’ option instead of ‘THE’ option, retailers and shopping centre owners just need to work out what it is that shoppers want from their centres and stores. SIMPLE! 

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It’s not just new brands that excite…there are some old favourites that remain strong in the hearts of consumers..

There has been lots of attention directed at brands making their debut into Australia, of which Zara is consistently hailed as the hero of this new wave. Furthermore, the excitement generated by such brands is seen to be another reminder of a flat and uninspiring local retail offer. But there are some existing and established brands in Australia that still create excitement at the thought of them. This list includes Sizzler, Hogs Breath, IKEA, Aldi, Sumo Salads, Boost Juice and The Body Shop. I can hear you thinking, ‘what is so special about them?’. After all, they are seemingly ordinary brands, aren’t they? To the urban sophisticated residents of Melbourne or Sydney, I can appreciate they don’t stir the excitement that a Zara or Uniglo does. 

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Consumers: Cautious, but not paranoid.

For the current Australian shopper caution is the name of the game. They shop around for bargains, they are open to the idea of haggling, and if they do not need to buy something then they are likely to wait and consider. 

However while they are cautious, it is important to remember they are not paranoid. Australians still want to spend money, but they want to be careful when spending it. The Global Financial Crisis has rattled them, but they are not running for the hills yet. 

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The Buzz

Retail Apps

In previous eDirections we have talked about the use of shopping apps for customers. Continuing on from that, here are a few select Apps related to retail we thought we would highlight along with how they work. 

Woolworths 

The strength of Smartphone Apps for both the shopper and the store is convenience. By making things as convenient as possible for the shopper, it is easier for them to get what they want, and so they are more likely to return to your store time after time. The Woolworths App understands this completely. It has eight different functions, all of which make things more and more convenient for the consumer. Really like a particular product you have just run out of? Scan the barcode and it will be added directly to your saved shopping list, or use the Product finder to type in its name or category, if you want to try something different. This shopping list is then ordered by Aisle, making it easier than ever to find exactly what you want. 

Then the App even goes as far as giving you offers and specials designed around the items you buy regularly, and giving you access to the weekly catalogue of specials so you know exactly when, what you want to buy is on sale. In addition, if you want to try a particular meal, there are 800 different recipes you can add directly to your shopping list, providing you with all the ingredients you need. Finally, you can keep track of your fuel saving vouchers earned and used. 

Quickerfeet 

AMP Capital Shopping Centres, has partnered with the brand new app ‘Quickerfeet’. Working with the new idea of Location-based marketing, Quickerfeet is a more focused version of a coupon app. Users can set a radius between 1KM and 100KM, as well as set favourite stores within the Quickerfeet set up, and when stores within this radius or their favourite stores have a sale going or event happening, Quickerfeet alerts the user. Once in store they show the retailer their quickerfeet message and they get access to the discount. 

The retailers have to work with Quickerfeet, but it is easy to see how they will benefit from giving customers an immediate incentive to visit the store when they’re already in the area. Committed brands already include General Pants Group, Billabong, Lorna Jane, Bras N Things, Event Cinemas, Thredbo, AMF Bowling and Rydges Resorts, among others as the list grows. 

Westfield iPhone App 

Just like the App mentioned above, this application by Westfield understands that the guiding principles of what makes an App desirable to consumers is convenience, however whereas the Woolworths App gives a great deal of information about Woolworths, this application stretches across entire Westfield Shopping Centres. 

Browse through the centre directory and map, finding exactly what store or sort of stores you are after, and even if those stores have any special offers at the time! Once you have done that, you can locate precisely where those stores are on the centre map and be guided directly there, even giving you the option of avoiding escalators and stairs by only taking elevators. 

But if you are not in the centre for anything specifically, just to have a browse, then the App can provide for you too. You can look through all the latest centre offers by category, delivered directly to your Smartphone. Or even receive the latest news and events from Westfield so you can work out if there is anything inspiring you to visit. 

By Stephen Richard  

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The Rise and Rise of Penny-Wise

It’s official: There is a cure for shop-aholics. And it is caution.

A recent survey on shopper style by Directional Insights revealed that “frugal fever”, our desire to save with an occasional foray to snare a bargain, has gripped the nation. Directional Insights’ survey of 1000 Australian shoppers revealed over half of us (54 per cent) are keeping our pennies – and credit cards – in our pockets while scanning the internet for the best interest rates for our savings. Men and women say they are united in a search for a bigger personal safety net, with 31 per cent of shoppers saving a little with every pay packet rather than spending on items they consider unnecessary.

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Australian Benchmark report free to download!

This year we released the 2011 Directional Insights Australian Shopping Centre Benchmarks, and they have been a huge hit. As well as providing an insight into the performance of different sorts of shopping centres Australia-wide, they show the trends over time, looking back at the benchmark results for 2009 and 2007.

This year we did something a little different; the Australian Shopping Centre Benchmarks set. Instead of telling the results of specific sorts of centres – Neighbourhood centres, Regional centres, and everything in between – this set of benchmarks tells you how shopping centres are performing Australia wide.

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Development Product Positioning – Creating stronger connections with customers

As customers increasingly demand more from a shopping centre, i.e. an experience and not just shopping, the role of customer consultation should be a requirement of any development timeline. As with most customer consultation that occurs during the planning process, the outcome is a better product that the customer is more engaged with.

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Smartphones and Social Media.

This hot topic in retail is online sales via the internet. The penetration of the internet into the retail sphere will only increase with the increased penetration of Smartphones into the marketplace. The CCI records that in 2009 35% of Australians accessed the internet through a mobile device, and with Telstra stating more than half of Smartphone users accessing the internet from their mobiles daily, the internet is ceasing to be something that requires the consumer be static to access.

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The Buzz

Fashion retailer selling “experience” along with unique and beautiful pieces.

We at Directional Insights have decided to introduce you to some of our favourite retailers. The recent frenzy surrounding the opening of Zara in Sydney, highlighted how bored we all are with the fashion on offer in Australia. So, we thought that a unique fashion retailer who is striving to create something different would be an excellent place to start.

Bel’s Aviary Vintage is a boutique store in Manuka Arcade, Canberra which is owned and run by Annie Brown. Bel’s Aviary offers a mix of designer and vintage clothing and accessories, with a focus on stocking unique, beautiful and locally sourced pieces that are still affordable.

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New faces in the Directional Insights Team

It is with regret that we announce Therese Rapp our fantastic Research Executive is leaving our shores at the end of July to move to the UK for the sunnier climate. Therese has made a significant contribution to our team and our clients and we wish her well in her new endeavours.

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Helen Bakewell to present at AMSRS conference

We are very pleased to announce that the Managing Director of Directional Insights, Helen Bakewell is presenting at the 2011 Australian Market and Social Research Society Conference. Her presentation will be answering the question “Is retail in an evolution or a revolution?”, dealing with the important issue of what the future is for shopping and online retailing in Australia.

Her presentation will be on Thursday the 8th of September from 1:45pm until 2:05pm. She will be the opening for a larger series of presentations on fast moving consumer groups, dealing with topics directly relating to the retail market.

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Discover the “who” and “how” of Australian shopper behaviour

Directional Insights’ Consumer Shopping Benchmarks 2011, launched today, provides exclusive insights into today’s Australian shopper behaviour. The reports are a powerful management tool, allowing you to track a shopping centre against the industry as a whole or within its market segment. The Benchmark reports reveal who shops, how they shop, why they shop and their satisfaction with their shopping experience.

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Add a second Discount Department Store to a Sub-Regional Centre and see customer $ and customer satisfaction flow.

Directional Insights’ Consumer Shopping Benchmarks 2011, launched today, reveal that customers spend more time and money in a Sub-Regional centre when it adds a second Discount Department Store (DSS) such as a Kmart, Target or Big W. The addition of this second DDS bridges a gap between the medium sized Sub-Regional centre, and the larger Regional centre.

The benchmark series shows that customers at double DDS Sub-Regional centres, when compared to customers at single DDS Sub-Regional centres, typically display the following retail behaviours:

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Benchmarks reveal the impact of the GFC on shopper behaviour at Big Gun centres.

Current shopper behaviour at Regional centres has changed markedly in the past two years with frugal fever hitting Australia’s largest and most luxurious shopping centres, when comparing Directional Insights’ Consumer Shopping Benchmark Reports, the 2011 series of which is launched today.

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The Buzz

Australians still love to shop, with food now the fashion

Australian shopper behaviour has changed significantly post-GFC, with increased interest in food shopping and frugal fever now an integral part of the retail terrain, from small neighbourhood to major retail centres, according to Directional Insights’ Consumer Shopping Benchmarks 2011, which surveyed 26,000 shoppers across Australia and are released today.

Women, the primary shoppers in Australia, are shopping as frequently as they did in 2009. However they now more often identify themselves as mission shoppers – shopping for a reason – rather than leisure shoppers, who spend more time and money during a centre visit.

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Directional Insights Benchmark Series

At its heart, business is about two questions:

• 1. Is my business performing well?
• 2. Is my business performing well compared to my competitors?

In the retail industry a good way to tell if a shopping centre is performing well – and what can be done to improve it – is research, but this only answers half of the questions we need to know. However Directional Insights answer the other half.

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The most Important Issue to Australians

At Directional Insights, our business is to know what Australia is thinking. One of our tools for finding this out is a regular survey where we ask people what are they most concerned about; Economic issues, Social issues or Environmental issues. Economic issues are things such as the cost of living, interest rates, inflation and employment, Social issues covers topics as diverse as aging population, racism, mental health, gambling and other addictions, while environmental varies from issues such as drought and natural disasters to climate change and waste management.

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‘Tis the Season all year around

Now that Christmas is finally over, retailers can breathe a sigh of relief, but only for a moment as it is time again to plan for the future. Specifically, next Christmas. While it is true that there are many months (and many sales events) between now and next Christmas, there is that knowledge in the back of retailers heads that Christmas is always less than a year away.

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The Buzz

The Old Spice Guy

Hello readers. Look at your advertising, now back to this column, now back to your advertising, now back to this column. Unfortunately it isn’t online advertising. But if it stopped using old media and switched to hype generating social networking it could have impact like online advertising. Look down, back up, where are you? You’re being interviewed about the ad your ad could advertise like. What’s in your hand? I have it; it’s a report talking about the success of your advertising. Look again. The report is now sales! Anything is possible when you use new social media advertising and not generic advertisements. I’m on Youtube.

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What on Earth are you wearing?

In 2007 Directional Insights asked the question; what type of fashion are we purchasing? A survey was conducted that asked shoppers to nominate which fashion category they mainly purchase from. Four options were given including:

• Inexpensive Everyday Fashion- Lower priced work or casual wear including Lowes, Millers, Suzanne Grae, Payless Shoes and Supre.
• Mid Range Fashion- Affordable work or casual wear including Sussan, Portman’s, Mathers and Just Jeans.
• Better End Fashion – More expensive, branded work or casual wear such as Cue, Rodney Clark, Nine West and Country Road.
• High End Fashion – Expensive and exclusive designer label wear such as Polo Ralph Lauren, Saba and Lisa Ho.

But 2007 was a long time ago, and so recently Directional Insights asked this question again to find out just what people want to buy in 2010.

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Aspirations for the local Retail Strip Centre

On average 75% of Australians prefer to shop in shopping centres, however 1 in 4 prefer retail strip centres. They don’t just prefer them, they are passionate about their local high street. With the important fact being that the local retail strip is “ours”, run by locals, serving locals. They have different shapes and sizes, different cultures and appearances, but they are a very important part of many Australian’s shopping routine. So what do Australians want from their local strips?

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Sales Fatigue

In July of 2010, Directional Insights carried out the AMP Capital Shopping Centres ‘Australia’s Shopping Intent Report’, a regular investigation into the Australian shopper. One of the biggest discoveries was the growth in sales fatigue. According to the Report, nearly half of Australian shoppers find sales to be far less of a draw-card than they once were. There are a few reasons people may find sales to be less enticing.

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Facebook Places

Everybody is aware of the impact and growing popularity of Facebook in modern society. We can keep in touch with friends from far away or very near at the click of a button, relive good times and even play social games on it. Within a few years we will probably be able to pay our taxes over Facebook. Although it has not quite reached that level of sophistication, there is now a new application at play: Facebook Places.

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The Buzz

Pop Up Shopping Centres

Pop Up Retail is a concept we are familiar with, but how familiar are we with Pop Up Centres? Ok, it does not have a full offer, but Magnolia Square is a limited chance to enjoy what could best be described as a Pop Up Marketplace. Functioning almost like a travelling show, it attracts unique retailers to display produce and products that shoppers are unlikely to find elsewhere.

But perhaps the most alluring drawcard of the event is that it is an EVENT; an Event for the shopper. You visit your local centre any time you like, and often do at least once a week, but this a Pop Up Shopping Centre, is a rare event full of wonders unknown instead of the familiar shops you know. Who knows what products you will see and fall in love with? Retailing adventures await!

Magnolia Square will be in Sydney from the 12th to the 14th of November at Randwick Racecourse, Adelaide from the 25th to the 27th of November at Norwood Concert Hall, and will be in Melbourne from the 2nd to the 5th of December at St Kilda Town Hall.

This is also a perfect venue for Casual Mall Leasing Managers to scout out potential new clients that can bring some unknown wonder to a local centre for a short time only, or perhaps become a rare unique retailer in your local centre permanently!

At Directional Insights we are always ‘Keeping you in touch’.

What holds Customers back from shopping?

Everyone would agree Retail Sales have not seen the same growth as a couple of years ago. Is there something holding Australians back from spending? That is just the question asked in the recent July AMP Capital Shopping Centres Australia’s Shopping Intent Report conducted by Directional Insights. People were asked which of the following factors were holding them back from spending more.

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AMP Capital Shopping Centres Australian Shopping Intent Report

In July of this year, Directional Insights carried out our bi-annual AMP Capital Shopping Centres Shopping Intent Report, a peak into the thoughts of Australian shoppers. The bulk of the July 2010 AMPCSC Australia’s Shopping Intent Report revolved around the discussion of a single question. “What areas of spend will you be spending less on, spending the same as usual on, and spending more on in the coming year?” Comparing this years results to those of the same question posed this time last year gave, an overall impression of the spending habits of Australians. On the whole the results can be summarised in one manner: Promising. Most areas of spend are seeing either a decrease or stabilising rate of people spending less, and an increasing or stabilising rate of people spending more.

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Online shopping growth

Online shopping is a growing trend in Australia. Sitting in my inbox right now is a voucher from Borders offering 30% off any item purchased. The caveat is that it must be purchased online. However the Borders online store offers free shipping, and by purchasing online I have access to stock from any of their stores around Australia.

Online shopping is a growing trend in Australia. Sitting in my inbox right now is a voucher from Borders offering 30% off any item purchased. The caveat is that it must be purchased online. However the Borders online store offers free shipping, and by purchasing online I have access to stock from any of their stores around Australia.

With a few clicks of the mouse I can find the item I’m interested in, and after entering my credit card details all I have to do is wait for the item to be delivered to my door. I save on travel costs and it takes less time out of my day. With all this available to me, the question must be asked, why would I go into a physical Borders store and purchase the item?

Furthermore, imagine if I wished to purchase something that no store in my area had? Suddenly internet shopping ceases to be ‘the competition’ and instead, becomes ‘the only option’. The only real downside of online purchasing is the cost (which is free in this case) and the time allowed for shipping. If I purchase something direct from the store, it’s in my hot little hands straight away. Purchasing online leaves me wanting and waiting for a number of days, possibly weeks, depending on the product purchased.

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Creating the Perfect Workspace

The smarter fitouts of commercial spaces today are often an outcome of an engagement process which is undertaken prior to the design stage and entails consultation with various members of the end user group (or workforce). This idea exchange is invaluable and has been applied successfully in the development of award winning commercial buildings such as The Bond in Sydney and The Gauge in Melbourne.

By incorporating feedback from your workforce into the design brief, your design team can ensure that the final product reflects its occupants, and ultimately, that the workforce has a positive connection with their surroundings.

Typically, the engagement process commences with user groups and after analysis the output is shared with the organisation, and finally the design team. A skilled facilitator using qualitative research tools can effectively tap into desires for a future workplace, exploring through the process, different expressions of these needs and wants. Whilst the employee stands to gain by having an inspiring work environment, there are gains for the business as well. A more engaged worker is a more productive worker and this feeds positively through to the bottom line.

Another business perspective to consider is the brand image and the equity that is tied into this image. Brand equity is partly achieved through effective communication of a strong brand image; the workplace provides a canvas to promote this image. Further to this rationale is the increasing importance of the employee brand in attracting and retaining talented staff. An employee brand that runs through the veins of a workplace will serve the business well through stronger retention, and help them to minimise the costs associated with attrition.

This consultation process is valuable if you are an organisation embarking on a new lease, and exploring options for a new workspace. If you are a property owner the process can also add value at the refurbishment stage. Whilst you may not have secured your tenants, any strategy that aims to differentiate your asset with workplace benefits will help attract tenants. A tenant who provides an appealing environment for their employees should benefit through lower attrition, and thereby be more incentivised to stay when the lease comes up for renegotiation.

For more information about creating the perfect workspace at your place please contact Kylie Newcombe at Directional Insights.

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Marketing Budget too small? What should you do?

In the last issue of eDirections we asked YOU to tell us your thoughts on marketing spend for underperforming centres, specifically whether you’d increase, maintain or decrease spend in order to increase awareness and marketing cut through to trade area customers.

Well the votes are in, and you don’t have to be a Wizard to guess that most people opted to INCREASE marketing spend.

We discussed our findings with the team at Halo Brandbank and they agreed, this would be a great solution, but it’s not as simple as just “clicking your heels together”.

Shaun Swanger from HALO Brandbank shares his views on the subject and offers three Wicked little tips for Shopping Centre Marketing departments to help improve Centre performance before resorting to increased spending.

It feels like we’ve been working in and for Australia’s shopping centre giants ever since Dorothy went to Oz, so we’re here to say that there is a lot you can do before you start petitioning the owners for an additional contribution. It all starts with thinking differently. Here’s three easy ways to reshape your marketing programme:

1. You’re not in Kansas any more, Dorothy.

Shopping centres started out in the 1960s when there were fewer specialty chain stores, and less advertising and promotion overall (essentially there wasn’t much colour). Back then shoppers needed their local centre to remind them to shop for Mother’s Day or Father’s Day. Now the chains are promotional powerhouses and the discount and department stores define the retailing calendar. It is these brands that are doing the job of promoting retail events and it’s the job of the shopping centre marketing fund to say ‘choose us’ and to give compelling reasons why. So ditch the gratuitous seasonal promotions and find your centre’s point of difference, match it with its growth opportunity and start campaigning this message.

2. And because we’re no longer in the 60’s, you don’t have to choose old media, Dorothy.

Back then it made sense for a shopping centre to be telling the local retail story in the local paper or on radio. Back then these were the only media available. Today there’s so much more on offer. If your centre is stable then you don’t need to be driving trial, you need to be encouraging frequency. And frequency loves Facebook and other social media. Start using the costless media and save that media money for creating a reason to visit the centre.

3. It’s 2010, start looking like it, Dorothy.

Shopping centre creative can feel very, well, shopping centre. Be new, be different, be interesting, be heard, and above all be noticed. Now that media can be highly targeted, so too can your creative approach, so you needn’t fear offending your Aunty May any longer. A fantastic promotional idea coupled with bang-on media will still stay a secret if you’re using invisible creative.

Don’t wait for your centre to under-perform! It’s 2010 and everyone’s marketing will benefit from an update in thinking.

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Opinions are aided

A question dreaded by men around the world is the ever terrifying “Does this look good on me sweetie”. Perhaps the most unexpected answer would be “There’s an app for that darling.” But there is.

Welcome to beopinionaided.com, one of a host of websites established on the basic premise that people are interested (or dare we say fascinated) in the opinions of friends, relatives and even complete strangers from around the world.

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The Buzz

Want to stand out from the crowd?

We all know Viral Marketing is a powerful marketing tool. So what better way to get tongues wagging and foot traffic pounding, than to stage a clever in-centre promotional gimmick, such as a Flash mob.

For those of you not familiar with the term “Flash mobbing”, it is defined as a large group of people who assemble suddenly in a public place, perform an unusual and seemingly pointless act for a brief time, and then disperse. The term is generally applied to gatherings organised and/or rapidly propagated from person to person via telecommunications, social media and viral marketing.

Our friends at Top Ryde Shopping Centre recently surprised us all, especially the thousands of shoppers visiting on their opening weekend, with a well planned and executed Flash mob, which is bound to leave a lasting impression with customers and non-customers alike.

Michelle Thomas, Marketing Director Top Ryde Shopping Centre gives us the lowdown on their inspired marketing idea and foray into Flash mobbing.

The day before the historic 2010 federal election, Julia Gillard officially opened the New Top Ryde City shopping centre. What neither she, nor any of the other thousands of shoppers at the event were expecting was for 200 performers to spontaneously burst into a 7 minute choreographed flash mob.

Just as quickly as it began, performers melted back into the crowd.

The idea was presented to VerveCreative by Top Ryde City, Verve then master planned the choreography and produced it in consultation with Top Ryde City. The flashmob performance was shot using 7 cameras, edited on site and uploaded to YouTube within hours of the performance. The video is designed to go viral – a highly effective way of promoting the centre.

At a random moment in time, the music in the centre changed, ‘shoppers’ started spontaneously dancing to the music. Very quickly one performer turned into 10, which eventually culminated in a mass performance involving over 200 dancers.

Within 2 days, the video has had over 2,000 hits. At this rate, within a week, 10’s of thousands of people will have seen it – a highly effective way of promoting the centre.

At Directional Insights we say well done to Top Ryde City for taking a risk and entertaining us all with something new. We would love to hear from others out there who have innovation to share.

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What day is it today?

On the day this article was written, it was International Day of the World’s Indigenous People. Did you know that? Just three short days later and we were celebrating International Youth Day. The week prior it was Local Government Week and on Friday 6th August the Directional Insights office was full of people wearing jeans in support of Jeans 4 Genes day (your office may have been awash with denim as well, but if your organisation supports mufti Friday, you may not have realised the significance of the day). To be honest, the only reason I knew to throw on a pair of jeans was the hordes of school children selling Jeans 4 Genes day keyrings at the local train station.

How many of these days are marked on your calendar? How many of these days should be marked on your calendar? Or perhaps more importantly, how many of these days would you mark on your calendar if you knew about them?

It is important for business’ to support worthy causes, but in modern times it can be difficult to keep track of them all. With so many events, so many causes, and so many days either commemorating, celebrating, or endorsing events and causes, it can be difficult to remember if today you wear the pink armband and tomorrow you shave your head, or tomorrow you wear the pink arm band and Friday you don the red nose.

Do you really care? Well if the answer is YES, there is a solution to this little quandary, and it’s only a few clicks away at www.ourcommunity.com.au. This site lists state, national and even international events on their community calendar. Just go to the Community page, find the quick link to the community calendar and start searching by day, week or month. With a website like this you can keep in touch with all kinds of community events, and hopefully it might just take a bit of pressure off school kids having to do all the hard work.

Thanks to Megan Coleman, Marketing Manager ISPT Vic Retail Portfolio, for sharing this valuable resource with us. Now there’s no excuses for not knowing “What day it is today”.

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NOTE: This is general information only and does not constitute advice nor take into account any individual’s or company’s specific requirements, and should not be relied upon as such. Readers are advised to seek specific advice. Directional Insights makes no representation nor gives any warranty as to the accuracy of future forecasts. This information is not intended as investment advice or other advice and must not be relied upon as such. You should make your own inquiries and take independent advice tailored to your specific circumstances prior to making any investment or other decision. To the fullest extent permitted by law, any conditions, warranties or liabilities implied by law into these conditions are hereby excluded. All copyright resides with Directional Insights Pty Ltd.

It’s all about LEEDing Retail

We all know that the drivers of retail start with location and retail mix. If it is close to where I live then I will shop there, and if it has the right retail mix, I am even more likely to shop there.  According to Dr. David Huff of the University of Texas, the key theory to shopping centre attraction is location and centre size. The closer I live to a centre the more likely I am to visit, and the larger the centre the stronger the attraction. It is all very logical. I love shopping at Chadstone Shopping Centre but I live in Sydney….that makes  visiting weekly very difficult…or very expensive!

But in today’s modern society other factors beyond location and centre size and mix are now coming into play. These other factors are also quite logical. I am time poor, what are my chances of getting a car park – a key driver. I have a young baby, what is the quality and cleanliness of their parents’ room.  I have a four wheel drive with roof racks – can I make it into the car park without ripping them off? And so it goes on.

Developing shopping centres around logical benefits is very important, having the right retail mix -a butcher, a supermarket, a discount department store, supporting specialty retail are all obvious issues in shopping centre design and management. The logical theory largely holds true for the primary trade area, and the secondary trade area accounting for around seventy percent of trade..… location and retail mix are the key drivers most of the time. But what about the thirty percent or so of customers from beyond the trade area? What about the other times for the main trade area when logic goes out the window?

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Where do we go after stainless steel appliances and Caesarstone?

Residential property development has certainly become sophisticated in terms of the range of product for multiple lifestages, each one concentrates on a different lifestyle promise. This could be the village lifestyle for first home buyers, the community appeal for families and the leisure offer for retirees or empty nesters.

For the best part of a decade the marketing language has focused on the design materials or appliance brands. Whilst residential product has become extremely sophisticated with the inclusion of Euro appliances, CaesarStone, seamless indoor outdoor entertaining areas this has also become the norm rather than a competitive advantage. Naturally energy efficient designs will continue to have a role in design and such benefits will be exploited by the marketers.

But where does product innovation come from in the future. We need to rely on Architects and Designers to drive some of that innovation of course. Another source of innovation should be the potential buyers themselves, they should be at the heart of the design and planning process.

We should be aiming to design houses that express the values of individuals and communities. We know there is a rational checklist that includes criteria such as proximity to transport, shops and services, but what sort of life do they really want to be living. Perhaps we should be asking the question ‘what do they want their home to say about them?’. Collecting insights on the emotional drivers can only enhance the design brief and inspire architects and designers.

Directional Insights through its innovative qualitative techniques contributes to clients’ understanding of the logical, emotional and egotistical drivers of residential environments. If you would like to discuss this further please feel free to call Kylie Newcombe, Principal Consultant on 02 9418 6644 or email kylie@directional.com.au.

What do social networking and nostalgia have in common?

Why customers want to see yesterday in a new way…
Increasingly during customer discussion groups run by Directional Insights across the country, we hear customers reminiscing about marketing activities they used to enjoy when in shopping centres when they were young; activities such as face painting, children’s shows, school performances, fashion parades, talent quests, free carousel rides and train rides around the shopping centre.

Basically, what they are talking about is the industry label of the dog and pony show.  But why?  In a more sophisticated technologically driven society why aren’t these customers saying I want hologram catalogues or on-line fashion parades or DVD catalogues by direct mail. Why are they going back to what they enjoyed in their youth? Well it all revolves around nostalgia and the history of shopping centres.

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Green Reveal Update

Source: Planet Ark.

In the May – June edition of eDirections we discussed the work we have undertaken with Planet Ark on their introduction of Carbon Reduction Labelling in Australia.

But in the meantime Planet Ark has just announced that Aldi has become the first Australian company to join Planet Ark’s Carbon Reduction Label Program – read more at this link http://www.foodweek.com.au/Default.aspx?tabid=53&ID=7532

The Buzz

Retail World 2010 Melbourne

The Retail World Conference was held in mid June in Melbourne. It opened with Bob Every Chairman of Wesfarmers talking about Coles, the Past, the Present and the Future and included two days of some retailing giants talking about retailing in Australia and Overseas including The Just Group, Luxocttica, Harvey Norman, Crate and Barrel and Woolworths to name but a few.
I thought I would share some of the collective key take outs that I thought were of interest. Overall the main themes of the conference we directed towards being Customer Centric, Living Values, Innovation, Value Propositions and embracing Technology.

• Some retailers discussed head office as now being a store support centre, supporting the stores. Start with the customer and put head office last.
• Customer fulfilment not category fulfilment within retail stores. Identify who your customer type is and provide that customer type with all their needs within your retailing category.
• Many spoke about putting customers first. How do you increase market share “put your customer learning into action quicker”. Listen, hear your customer, and then change
• Cultural imperatives around retail operations was also a big theme, identifying them and living them. “Culture is important to any company’s success”
• Continued investment in capital to drive strong store returns
• Gift cards providing over 200% return for some retailers, a $100 gift card spend in store would be accompanied by an additional $70 to $230 spend.
• A strong staff discount ensured staff wore your merchandise and advertised in-store the range available
• Making retailing exciting with great merchandising were common themes as seen as areas of opportunity in Australia’s market place
• Giving back to the community was also a common theme
• Embrace the digital future – Increasing use and awareness of social media audiences, being aware rather than trying to control seemed to be the primary lesson
• Innovation takes time, the Smiggle Soccer Ball which has been a huge success took 6 months to get right – it takes time and planning to deliver innovation.
• Redefine and reinvigorate mature brands
• Develop entirely new growth paths for your brands
• Having a relationship with your customers that is real is a competitive advantage that can never be copied!
• If customers have the experience that warrants the price, then customers will pay the price
• If you are in the commodity business someone else is always going to have it cheaper – give the customer value not just cheap
• Don’t just know what your customers do, know WHY they do it
• Make the internet work for you in every respect, sales, social networking, customer contact
• Authenticity is critical in being a great retailer.
• And finally the ringing cash register is the applause that you are doing a good job as a retailer!

NOTE: This is general information only and does not constitute advice nor take into account any individual’s or company’s specific requirements, and should not be relied upon as such. Readers are advised to seek specific advice. Directional Insights makes no representation nor gives any warranty as to the accuracy of future forecasts. This information is not intended as investment advice or other advice and must not be relied upon as such. You should make your own inquiries and take independent advice tailored to your specific circumstances prior to making any investment or other decision. To the fullest extent permitted by law, any conditions, warranties or liabilities implied by law into these conditions are hereby excluded. All copyright resides with Directional Insights Pty Ltd.

Firstly, I would like to thank everyone for the overwhelmingly positive feedback we have received with the launch of our eDirections newsletter and our new website.

Subscription to eDirections is free and designed to help professionals in the industry “keep in touch” with the latest market developments and consumer sentiment, so feel free to pass it on to colleagues.

Subscribe Now and Keep In Touch!

The Green Reveal

Sustainability, carbon footprint and Carbon Reduction Labelling are terms that are relatively new to the retail industry but are being used more and more frequently. So Directional Insights decided to investigate what the rising interest in green issues and sustainability means for the Australian consumer and how does the green movement impact the way people think, act and shop? To do this we partnered with Planet Ark to provide a green reveal.

This research provides insight into what consumers are thinking and doing when it comes to keeping green. Has the prevalence of green washing meant that customers no longer care about or believe in green initiatives? – Or has the GFC bumped the environment off the agenda for ever?

It was initially necessary to discover what is happening in the hearts and minds of Australian consumers. Are we really worried about the environment? Or are we too preoccupied with interest rates to think too much about Global Warming?

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Directional Insights Shortlisted for REA

We are very excited to announce that Directional Insights has been shortlisted as a finalist in the Australian Market & Social Research Society – Research Effectiveness Awards for 2010. Directional Insights was listed as a finalist, with winners to be announced on Thursday, 20th May for Shopping: A Consuming Passion. This research project was undertaken on behalf of AMP Capital Shopping Centres.

Check out www.rea2010.com.au for our entry details.

Shopping Intent Report February 2010

Shoppers remain “super careful, fragile and realistic”. The study reveals that across the major retail categories, more than a third of Australian women still intend to spend less on average than they did prior to the global financial crisis, pointing to a slower than anticipated retail recovery. The survey also shows a significant shift in the mindset of Australian shoppers in their willingness to embrace budgeting. Almost 50% of Australians said they now used a budget to manage their spending levels, with one in ten implementing a budget since the GFC hit and a further 14% planning to use one Click here to download the report.

The Buzz

Walmart’s Sustainability Index

Directional Insights began looking at what retailers around the world are doing in response to the increasing interest in sustainability and green issues. Walmart, one of the largest retailers in the U.S., has assessed their carbon footprint and found is made up of:

• 4% bricks and mortar;
• 4% fleet; and
• 92% products sold.

Four years ago Walmart committed to improving energy efficiency, reducing waste and selling sustainable products. Walmart believes that responsibility falls to businesses when it comes to green initiatives and they endeavour to drive these concepts through their activities and the products sold.

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NOTE: This is general information only and does not constitute advice nor take into account any individual’s or company’s specific requirements, and should not be relied upon as such. Readers are advised to seek specific advice. Directional Insights makes no representation nor gives any warranty as to the accuracy of future forecasts. This information is not intended as investment advice or other advice and must not be relied upon as such. You should make your own inquiries and take independent advice tailored to your specific circumstances prior to making any investment or other decision. To the fullest extent permitted by law, any conditions, warranties or liabilities implied by law into these conditions are hereby excluded. All copyright resides with Directional Insights Pty Ltd.

Subscription to e-Directions is Free and is designed to help professionals in the Retail, Residential and Commercial Property Industry “Keep In Touch” with the latest market developments and consumer sentiment.

We’ll be divulging some intriguing consumer insights throughout the course of the year and we welcome you sharing this information with colleagues and friends who may also benefit from our research updates, articles and opinion pieces.

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It’s the age old story… Really

We all know the population is ageing, we hear it all the time in the media, but is the hype really true? In the last Census (2006) the average age of Australians increased from 35 in 2001 to 37 years. And whilst 1 in 5 of us is now aged over 55 years, 33% of Australia is still aged under 25 years.

But all this is about to change. The Western World is ageing fast and Australia and New Zealand are no exception. This trend is a product of 200 years of wealth, health and salubrity – creating a majority of healthy older people. In 2042, life expectancy at birth for men is projected to be 82.5 years which is 5.3 years longer than life expectancy at birth in 2002. In 2042, life expectancy at birth for women is projected to be 87.5 years, which is 4.9 years longer than their life expectancy at birth in 2002 in Australia. This trend is expected to be similar in New Zealand.

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This is the way we wash our hands

Hand dryer or paper towel? Which one do Australian’s prefer when using a public restroom?

Directional Insights undertook a nationwide on-line survey of n=1,000 Australians to air out our personal hygiene preferences when visiting a Shopping Centre and it seems the paper towel wins our vote.

The majority of us stated that we prefer paper towel to dry our hands when we are using a public toilet in shopping centres, at 58%. However, when we look at paper towel preference by gender, it is the women who have the greatest preference for this hand drying medium, at 64%. That’s not to say that men don’t prefer paper towel, with 52% of Australian males stating this was their favourite way to dry their hands.

A further 17% of Australians interviewed stated they preferred to use a hand dryer when drying their hands in a public rest room. In terms of preference for hand dryers by gender, it is the men who have a greater preference for hand dryers at 21%. This is a slightly higher proportion compared to females, where 14% prefer hand dryers.

Approximately one in five Australians interviewed stated that they are happy to use either paper towel or hand dryers when they use public restrooms in a shopping centre.

So how does this vary across the age groups? Not drastically, however preference for paper towel tends to increase the older we get, with the highest preference by those aged 45-54 years and 55-64 years at 62% and 63% respectively. Conversely, Australian’s aged over 65 years have a slightly higher preference for hand dryers at 23%, yet the majority of this age group still prefer paper towel at 57%.

When it comes to preference for either hand dryers or paper towel by state, the appeal of paper towel is highest for those residing in the Northern Territory. This is closely followed by those residing in the Sydney Metropolitan region, with 67% preferring hand towel and only 10% with a preference for hand dryers.

Shoppers tend to see the pros and cons of both paper towel and hand dryer use. Some shoppers are asking just how environmentally friendly is paper towel? Even if the paper towel is recycled, what is the cost to the environment? Other shoppers ask, what is the environmental cost of making and running a hand dryer? Which is more hygienic?

Interestingly, 3% of shoppers don’t like to use either a hand dryer or paper towel to dry their hands! They are the shoppers you see wiping their hands on their jeans. At the end of the day, it just comes down to personal preference!

Planet Ark, Wow and Directional Insights = Its cool to be green.

We all know being green personally and professionally is important. Consumers, especially female consumers are increasingly looking for ways to be more efficient, economic and green. With this in mind Directional insights recently joined forces with Planet Ark to investigate what Australian shoppers think about their carbon footprint. That is, their impact on the environment through what they do.

Given the task at hand, it seemed fitting for Directional Insights to launch their first venture with PDA devices, the latest – and more importantly for this collaboration, paperless technology in face to face research. In coming issues, we will bring you the results as well as the lowdown on how to be green in Australia and how to conduct green research.

Retail Wrap

The Year that Was and the Year that Will Be.

This informative presentation delivered by Helen Bakewell, Managing Director – Directional Insights, is an excellent way for members of your team to “Keep In Touch” with Industry developments.

Helen will discuss the impacts of the Global Financial Crisis and share her views on the trends and issues shaping the face of the Retail Industry in 2010.

To register your interest and arrange a convenient time for Helen to present this 60 minute overview at your office, please call Margaret McQueen on (02) 9418 6644 or email margaret@directional.com.au

The Buzz

Retail Vegas Style

Walking down the Las Vegas Boulevard, where artifice, neon’s and colour are abundant, one would hardly expect to find such an environmentally conscious building. From the outside, Crystals at CityCentre is an amazing structure, designed by renowned architects Studio Daniel Libeskind and David Rockwell. During the day, the buildings’ sleek and multi faceted façade, that is home to around 500,000 square feet of luxury retail, shines on the Las Vegas Strip.

However, once the sun fades, this Centre becomes an ever-changing sculpture,  with the lights of Louis Vuitton continuously capturing your attention.

Not only is this Centre home to some of the worlds leading luxury retailers, it is also home to some of the Strips star studded nightlife attractions. With a restaurant and coffee bar run by renowned chef Wolfgang Puck, a newly designed pub concept by Todd English and a restaurant and nightclub by Eva Longoria Parker, one is sure to spot a celeb or two!

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NOTE: This is general information only and does not constitute advice nor take into account any individual’s or company’s specific requirements, and should not be relied upon as such. Readers are advised to seek specific advice. Directional Insights makes no representation nor gives any warranty as to the accuracy of future forecasts. This information is not intended as investment advice or other advice and must not be relied upon as such. You should make your own inquiries and take independent advice tailored to your specific circumstances prior to making any investment or other decision. To the fullest extent permitted by law, any conditions, warranties or liabilities implied by law into these conditions are hereby excluded. All copyright resides with Directional Insights Pty Ltd.