6 September 2017 | 2 Minute(s) to read
Although official statistics show encouraging numbers for retail businesses like yours, there are some internal and external threats in the market that should catch your attention and get you moving towards digital transformation.
concern 1. Big overseas retailers are setting up flagship stores in New Zealand with powerful digital marketing strategies
Global players like David Jones, H&M and Zara are setting up flagship stores in New Zealand, but the big threat to local retailers is when those large companies merge digital engagement with offline brand awareness driving more online and offline sales across the country.
Retail management expert Jonathan Elms from Massey University says “New Zealand retailers are being warned they must gear up for major disruption in the digital market with the prospect of global players like Amazon extending their reach here”. Listen to the full interview here.
concern 2. The weak or nonexistent digital planning in most local retail businesses
A recent research by Microsoft's Asia Digital Transformation study revealed that 75 percent of local businesses believe they need to transform to become a digital business, but “only a third of New Zealand businesses has a digital transformation strategy in place, and less than half had made any progress with digital initiatives in their business”.
According to the study, the top five barriers to digital transformation are 1) the lack of a digitally-skilled workforce, 2) governmental policies and infrastructure, 3) business-savvy technology leaders, 4) tight regulations.
concern 3. Local businesses’ reluctance to change their business models
New Zealand small and medium businesses can be as resistant to change as large enterprises. Several New Zealand business leaders agree that local companies have an organisational cultural "immune system" that can stop innovation in its tracks and derail digital transformation.
Malcolm Johns, chief executive of Christchurch Airport, says if companies are not actively trying to disrupt their own business models, somebody else is likely to come along and do it anyway. Read the full article here: Business leaders discuss technology disruption.