Lemons and Lemonade: Cross-Channel Grumbling Down Under

Interesting piece by Michael Baker about how the early successes of lululemon in Australia are highlighting how many major retailers down under are "running scared from the internet."

Baker speaks to some fundamental negatives that characterize many retail philosophies in Australia — primarily "overpaid and pouty retail employees" (Australian retail staff earn almost twice the hourly rate of Americans) and pricey goods and services that encourage shoppers to shop online.

What is lulu doing right? According to Baker ...

1. The Right Product: Differentiated clothing product lines delivering high-tech fabrics, aesthetic appeal and multi-functionality.


2. The Right People: Careful screening of sales staff and commitment to training to ensure they properly represent the values of the company and provide a knowledgable and high-energy store environment.


3. The Right Presentation: Meticulous attention to in-store presentation of merchandise.


4. The Right Balance: Commitment to pricing and brand integrity.


5. The Right Idea: Having a clear philosophy and getting the word out via active involvement in the community.

The Old School Needs New Blood
Australian retailers are spooked by the accelerated shift to online shopping, especially as some leaders in the online space relish in their online successes to date and project huge growth for 2011.

Baker offers a great reminder about the importance of cross-channel strategies to any retail brand that is serious about international expansion in today's digital world of retail.

Decidedly old school ways of running retail stores are opening the door for global brands that have invested their future in cross-channel — primarily by building connected shopping experiences that bridge the best that online and offline retail points of trade have to offer.

Aussie retailers should be taking advantage of the lessons learned from the still-maturing U.S. cross-channel practices. But based on a recent stream of commentary from Australia, many store retailers seem to be digging in and resisting.

Instead of making excuses, they should realize that they have more to lose and a shorter window to work with than some of the U.S. retailers that have just recently started to get the importance of cross-channel retail.

Pain is likely ahead for the headstrong, or as Baker puts it, "for Australia's retail chains to get the message, a change of culture, and probably a change of personnel at the very top, is needed."

A healthy retail sector is all about creative destruction. Instead of resisting change they should take advantage of their consumers' growing embrace of e-commerce.

Aussies like to support their fellow countrymen and if the price/value ratio is right, they may well be ready to embrace the right balance of digital and in-store experiences by supporting AU-based retail.

But given our lessons learned in the U.S., they won't wait too long.

Until next time,

Cheers