Majority of Australian Retailers Not Meeting the Needs of Today's Omnichannel Shoppers - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

Majority of Australian Retailers Not Meeting the Needs of Today's Omnichannel Shoppers

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SOURCE NetSuite Inc.

NetSuite and Australian Retailers Association Joint Study Reveals Australian Retailers Are Unprepared for Rapid Growth in Mobile Commerce - Less Than 30 Percent Have Mobile-Enabled Websites

SYDNEY, July 23, 2014 /PRNewswire/ -- Research sponsored by NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP and omnichannel commerce software suites, and the Australian Retailers Association (ARA), has revealed that 52 percent of smartphone users are now using their devices to assist them at some stage of the shopping process, an increase from 38 percent in 2011. The study, conducted by Frost & Sullivan, indicates just how unprepared Australian retailers are to handle this shifting behaviour. Less than 30 percent of retailers currently offer a smartphone-accessible website and only 21 percent have developed a mobile app for customers, despite the fact that approximately 65 percent of the population owns a smartphone.

A more detailed analysis of the research can be found in the Frost and Sullivan whitepaper: "Mobility: The New Opportunity for Australia's Retailers."

The Frost & Sullivan study of 120 ARA members (focusing on smaller retailers with less than 50 outlets) was carried out in June 2014 to understand how retailers are adapting to the growing use of mobile devices as an integral part of the shopping process. The study revealed that while most retailers recognise the importance of developing a mobile strategy, many still face major barriers in doing so, particularly the cost and complexity of linking new systems designed to support mobility with existing in-store business systems.

"The rapid growth in ownership and usage of smartphones is revolutionising the way that Australian consumers shop," said Mark Dougan, Managing Director for Australia and New Zealand at Frost & Sullivan. "The ability to access the Internet whilst on the move has transformed many aspects of consumer behaviour. Consumers are increasingly using their smartphones for shopping to research, compare, share, purchase and pay for merchandise."

Leveraging smartphones throughout the shopping process
According to the study, smartphones are not being used purely as a device to make an online purchase, but are an essential element of an omnichannel shopping experience that still often involves the use of a physical store. Almost 40 percent of consumers that start researching a product on their smartphone actually end up buying it in-store. These shoppers are using smartphones throughout the shopping process for researching (29 percent) and evaluating products (19 percent), with only four percent actually making a purchase on their smartphone and three percent writing reviews afterwards.

To support this new generation of omnichannel shoppers, Frost & Sullivan recommends that Australian retailers provide features and services to meet their customers' mobile needs. The study revealed the features that consumers place value on, including free WiFi (68 percent), stock level information (58 percent), directions to relevant departments (57 percent), customer reviews (50 percent), product information (48 percent), and being able to purchase using their smartphone (43 percent).

Smartphones can also be used instead of contactless cards at the point-of-sale (POS) for in-store payments using near field communication (NFC) technology. Currently, only six percent of retailers in the study offer contactless terminals, although almost 20 percent plan to do so over the next 12 months. As the technology becomes more widely available, Frost & Sullivan anticipates the take-up of smartphone-based payments will continue to rise, as Australian consumers become increasingly confident in using their smartphones as mobile wallets. Currently, only four percent of smartphone users in the study have made a contactless POS payment using their phones, but 30 percent say they are likely to do so once the technology becomes available.

"Australia's consumers are demanding that retailers provide services and features to support them in their omnichannel shopping process," said Mr. Dougan. "Those retailers who fail to respond to the new era of mobility in shopping face being isolated and left behind as the behaviours of their customers change."

Australian retailers lagging with mobile strategies
The Frost & Sullivan study revealed that while Australian retailers are making good headway in building their online capabilities, with over 50 percent now having a website and more than 30 percent offering online purchasing capabilities, many are still behind when it comes to customising their online offering for mobile devices. Less than 30 percent of respondents currently offer a mobile-optimised website and only 21 percent have developed a mobile app for customers. Those stores that do provide mobile apps predominantly use them to provide information to customers on their nearest store, opening hours and similar information.

According to Frost & Sullivan, the retailers that do provide mobile apps are generally providing them as part of an omnichannel strategy (i.e. the apps enable purchasing), although a third of retailers still primarily regard the mobile app as a way to stimulate traffic into physical stores. Many small retailers, however, are still failing to provide the in-store facilities that encourage use of mobile devices by their consumers. Only nine percent offer free in-store Wi-Fi and only 22 percent currently have Quick Response (QR) codes in their stores.

The study also indicates that use of mobile devices is not only limited to consumers, with some retailers now equipping their store staff with tablets to allow improved in-store service, such as sharing product information with customers, assisting with local inventory availability and even facilitating online purchases from within the store. Only seven percent of respondents, however, currently provide their sales staff with tablets, and thus are missing out on a major opportunity to enhance in-store service levels and improve customer satisfaction.

Integrated Software Platform to Overcome Challenges
According to the research, whilst most retailers recognise the importance of developing a mobility strategy, many still face major barriers in doing so. Major challenges include hardware costs (e.g. investing in tablets for sales staff), a lack of internal resources to develop an app or mobile site, as well as the cost and complexity of linking new systems designed to support a mobility strategy with existing in-store business systems. Over 50 percent of respondents believe that the software systems that they are using could be improved to allow them to better manage their in-store operations.

"Retailers' range of existing business systems such as POS, order management, inventory and warehouse management, financials and customer relationship management are often not integrated, requiring multiple re-entering of data and maintaining separate databases for consumers using different channels," said Mr. Dougan.  "Adding new front-end channels, such as an app or mobile site, only increases the complexity."

Frost & Sullivan believes that the latest generation of cloud-based retail software can support retailers in providing mobility solutions both to customers and staff, without the integration complexities and costs that are involved in integrating mobile services with existing business systems. This type of software allows retailers to quickly and easily rollout mobility solutions.

"For years, many merchants have skated by with stripped-down mobile sites and an unsatisfying 'View Full Site' escape hatch for advanced tasks," said Mark Troselj, managing director of APAC and Japan for NetSuite. "This must end in 2014. Mobile buyers won't tolerate a watered-down experience any longer. It's time to offer the mobile shopper the complete customer experience, from wish list management to returns."

About SuiteCommerce
NetSuite SuiteCommerce enables B2C and B2B merchants, manufacturers and distributors to seamlessly connect every step of a multi-channel, multi-location business-from ecommerce, POS and order management to merchandising, marketing, inventory, financials and customer support. Featuring an advanced web store that allows the creation of uniquely branded and personalised shopping experiences optimised for multiple devices, SuiteCommerce empowers businesses to run across multiple touch points-web, brick-and-mortar stores, mobile-all from a single, unified cloud-based commerce platform that provides unprecedented visibility into your business and customers. Please visit www.suitecommerce.com.au for more information.

Today, more than 20,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-class cloud ERP suites for divisions of large enterprises and mid-sized organisations seeking to upgrade their antiquated client/server ERP systems. NetSuite excels at streamlining business operations, as demonstrated by a recent Gartner study naming NetSuite as the fastest growing top 10 financial management systems vendor in the world. NetSuite continues its success in delivering the best cloud ERP/financial suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud accelerates.

For more information about NetSuite please visit www.netsuite.com.au.

Follow @NetSuiteAPAC on Twitter for NetSuite news and real-time updates.

NOTE: NetSuite and the NetSuite logo are service marks of NetSuite Inc. Third-party trademarks mentioned are the property of their respective owners.

Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements relating to expectations, plans, and prospects including expectations relating to the future growth of the online retail market. These forward-looking statements are based upon the current expectations and beliefs of NetSuite's management as of the date of this release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements including, without limitation, the risk of adverse and unpredictable macro-economic conditions. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and NetSuite disclaims any obligation to update these forward-looking statements.

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