[LINK] Kogan on Online Retail....

[Marghanita da Cruz]

Frank O'Connor wrote:
> So the Australian retailer's raison d'etre is to import goods for a 
> far greater cost than the individual consumer can do it for? This is 
> their business model?
>
> Practically speaking they generally source and contract with not the 
> overseas companies, but from either Australian importers (another 
> middleman) or domestic branches of the manufacturing company.
<snip>

By focusing on computer/s and consumer purchases, we might
be getting a skewed perspective.  Though E-Waste has not been
addressed.

The supply chain for food, for example, would be much more
complex.

B2B & B2G e-commerce plays a big part. Remember we have
an electronic customs system set up just a few years ago. Such
systems may be more costly for small/niche operators than large
operators who work on scale rather than variety.

There is also a jobs and skills angle and many IT systems are
justified on reducing head count. Though the benefits actually
realised by IT systems are generally much more interesting.

I suspect there are also some issues about physical retail
space - a front which we here in the Inner west have been
battling.
<http://www.ramin.com.au/annandale/story-73-parramatta-road-woolworths-da.shtml>
<http://metrowatch.com.au/>

then there is this:
> The City of Sydney has created the new retail advisory panel - 17 leading businesses and stakeholders tasked with positioning Sydney as "Australia’s best retail destination".
<http://www.insideretailing.com.au/Latest/tabid/53/ID/9613/New-panel-shapes-Sydney-retail-future.aspx>

There are also environmental issues - energy and water use:
> Green Star - Retail Centre v1 replaces the Green Star - Shopping Centre Design PILOT tool. 
<http://www.gbca.org.au/green-star/rating-tools/green-star-retail-centre-v1/1757.htm>

Below is info on the inquiry:

> he Australian Government will host an online retail forum in early 2011 to encourage and support Australian retailers to explore online options. Interested retailers, together with other parts of the supply chain, will hear about Australian online success stories and discuss the opportunities and challenges that exist in the digital economy.
> 
> The retail industry is one of the largest employers in the country. The Government recognises the importance of the sector to Australia's future and wants to ensure the sector continues to flourish. The digital economy offers all Australian businesses the chance to improve their productivity, increase their efficiency and expand their customer bases. Consequently, a strong online retail sector is an important part of Australia's digital economy.
> 
> The Access Economics Report 'Household E-Commerce Activity and Trends in Australia' estimates that online retail sales by Australians in 2009 totalled between $19 and $24 billion, or around three per cent of sales. It is likely 50 to 80 per cent of that amount was spent with Australian online retail outlets.
> 
> The report is available on the Benefits of a digital economy enabled by the National Broadband Network page.
<http://www.dbcde.gov.au/digital_economy/online_retail_forum>

> Scope of the Inquiry
> 
> The Commission is requested to examine:
> 
>    1. The current structure, performance and efficiency of the retail sector and impediments to its contribution to the Australian economy;
>    2. The drivers of structural change in the retail industry, including globalisation,  increasing household and business access to the digital economy, cost structures of the domestic retail industry, employment structure, the exchange rate and structural change driven by the resources boom;
>    3. The broader issues which are contributing to an increase in online purchasing by Australian consumers and the role of online purchasing in providing consumers with greater choice, access and convenience;
>    4. The sustainability and appropriateness of the current indirect tax arrangements in this environment, including the impact on Commonwealth and State and Territory budgets, and the extent to which technology could reduce the administrative costs of collecting indirect taxes and duty on imported goods; and
>    5. Any other regulatory or policy issues which impact on structural change in the sector.
> 
> The Commission is to provide both a draft and a final report, and the reports will be published. The Government will consider the Commission?s recommendations, and its response will be announced as soon as possible after the receipt of the Commission?s report.
<http://ministers.treasury.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/028.htm&pageID=003&min=brs&Year=&DocType=>

> The Australian Retail Industry
> Public inquiry
> 
> The Assistant Treasurer has announced that the Productivity Commission will be undertaking an inquiry on the implications of globalisation on the Australian retail sector.
> 
> The Commission will examine the current structure, performance and efficiency of the retail sector and the drivers of structural change in the industry, including globalisation, increasing household and business access to the digital economy, changing cost structures, employment issues and the exchange rate.
> 
> The Commission will also consider the broader issues posed by an increase in online purchasing by Australian consumers and the role online purchasing plays in providing consumers with greater choice, access and convenience
> 
> The inquiry is expected to start in early 2011 and report by the end of the year.
> Contact
> 
> Clair Angel
> Ph: 02 6240 3239
> Further information
> 
>     * The Future of Australian Retail - Joint Media Statement from the Minister for Broadband, Communications and the Digital Economy, Minister for Home Affairs and Minister for Small Business (external link)
>     * About the public inquiry process
> 
<http://www.pc.gov.au/projects/inquiry/retail-industry>

Marghanita
-- 
Marghanita da Cruz
http://ramin.com.au
Tel: 0414-869202