Smart Office

Menu

Oonagh Reidy

M-Shopping ‘Phenomenal’, Retail Flat, Warns Industry

by

It used to be a sideline act, but now the mobile selling revolution is hotting up to be the main event.

But the mobile revolution should be seen as an “opportunity” rather than a threat to business, according to the Retailers Association here.

“Growth in mobile commerce is phenomenal while stores have flat growth,” says Jennifer Cromarty, from the Association.

“Mobile commerce is abruptly altering the retail landscape and is set to rocket in 2011” the association has warned, with $155m in payments being made through Smartphones and web enabled mobile devices last year.

Online players are already stepping up to the mark. Auction giant eBay just his week has revamped its iPhone application, which now includes selling functionality alongside RedLaser barcode scanning techology.

This looks set to revolutionise m-shopping , enabling consumers to compare in-store prices with internet / eBay prices by scanning items with mobile phone cameras.

5-10% of Australian iPhone owners are logging into their eBay app every day, the online giant says. One of the founding fathers of intenet selling, eBay also confirmed 25% of Australians already use their mobile phone to shop. The Apple app is also soon to hit the Android market.

eBay also recently purchashed e-commerce expert GSI for a cool $2.4bn.

 

The purchase is seen to be a move by John Donohoe’s online giant to lure larger retailers into its business web and a defense against the ever increasing prowess of rival e-tailer Amazon, which has morphed into the biggest online seller globally and is one of the most visited retail websites in Australia.

Amazon already has a free app allowing consumers search and compare prices from local retailers for over a million products sold on Amazon.com for iPhone, Blackberry, and Android devices.

And it looks like many leading retailers locally are heeding the call. Harvey Norman has just confirmed it is fine tuning its site into a fully fledged trading platform, something the retailing giant shied away from, until now.   It is also a safe bet to assume these sites will be fully functional for mobile consumers.

“By this time next year you’ll see Harvey Norman with a pretty sizeable internet presence. My heart’s beating very strongly on whether we make any money out of it,” Mr Harvey said.

This will catapult Harvey’s up with the likes of Dick Smith and JB Hi Fi who already have significant presence in this space.

And PayPal have also quickly stepped in to meet demand revealing mobile payment volumes grew by 25 per cent in the last quarter.

“With the arrival of m-commerce we expect to see more change in the retail industry in the next three years than we have seen in the last decade,” said Frerk-Malte Feller, MD PayPal Australia.

“It is time for Australian retailers to form strategies addressing multiple channels. Retailers must have a presence wherever their customers are – be they in store, online or on their mobile phones,” Cromarty who is Deputy Exec Director of Retailers body warned.

 

“Consumers want to work with Australian retailers but if they aren’t offering the range, the consumers will start to look somewhere else.”

Optus Expand Coverage Aus, NZ

by

Largest satellite in Aus history to arrive in 2013, could help land Optus lucrative NBN contracts.

The current generation of satellites here are not thought to be capable of delivering 12Mbps, the speed set to be delivered under the NBN. 

Optus 10 will deliver customers the flexibility to provide high quality broadcast, and voice and data communication services to areas well into the future, the Singapore owned telco said in a statement today.

And it looks set to be particularly important for areas without access to terrestrial telecommunications infrastructure.

 “Satellite continues to make sense for Australia and Optus are honoured to continue to fly the country’s largest satellite fleet providing this unique capability to our customers,” Vicki Brady, Managing Director, Optus Wholesale and Satellite.

We continue to invest in our fleet and bring the latest communication technology into homes and businesses around the country, especially in regional and remote areas,” Ms Brady said.

Optus 10 is scheduled to be delivered in 2013 and will be built in Palo Alto, California by Space Systems/Loral and follows the expansion of its existing satellite fleet with the state-of-the-art D-Series satellites launched in 2006, 2007 and 2009.

 

Singtel owned Optus, who launched the first of Australia’s satellite fleet 25 years ago, also  provides satellite services to Government departments, FOXTEL, ABC, SBS, Seven and Nine Network and Sky TV.

BREAKING NEWS: New Years Day Start For Warburton At Ten

by

James Warburton will be the next chief of Channel Ten, but not until 1 January 2012.


Click to enlarge
Pictured: James Wharburton, Ten’s Chief-In-Waiting.

The ruling handed down by Justice Michael Pembroke at NSW Supreme Court this morning means Warburton, the former former group sales and digital boss at Channel Seven, will have to wait five months after his originally planned start date to become the new head at Ten.

Warburton was originally due to commence employment on July, 14, however Seven was looking to prevent this from going ahead until October 2012 next.

Channel Seven brought legal action against Warburton, following Ten major shareholder, Lachlan Murdoch’s, alleged poaching of the sales ace from under David Leckie’s nose at Seven, announced on March 2 last.

Seven argued Wharburton’s defection was ”contending the existence of employment and post-employment restraints,” a reference to his existing contract.

Ten denied it acted improperly considers and said the July start date was consistent with Mr Warburton’s employment obligations.

Warburton, as the network’s new CEO, will be taking over Grant Blackley’s spot, who got the sack earlier in the year following a disappointing earnings slump at the channel.

Sharp LCDs Take off, Profits +300%

by

The TV maker’s annual profit jumps 300 percent as LCDs demand booms.


Click to enlarge

The Japanese electronics giant said its net profit for the year ended March 31 surged to 19.4 billion yen or US$237.4m.

This reflects a phenomenal 341 percent profit hike from 4.4 billion yen this time last year.

Huge demand for its liquid crystal display (LCD) screens boosted its figures, it said yesterday, which are used for smartphones, tablets, TVs and game consoles.

Total sales increased 10 percent to US$37 billion with revenue from LCD displays increasing 21 percent to 614.3 billion yen.
It also sold almost double its number of LCD TV sets compared to a year ago – 2.18 million in China alone, according to Sharp spokesman Toshiyuki Matsumura.

However, its not all good news for the Osaka based giant, who issued a warning to shareholders that the earthquake which hit the eastern region earlier this year would have a huge impact on business.

Net sales and profit fell 30 billion yen below forecasts, however, due to the drop in demand following the disaster as well as the reorganisation of its LCD facility.

Sharp also warned it was unable to provide a specific earnings forecast for the current fiscal year through March 2012 because of uncertainties remaining after the quake.

“It is extremely difficult at this time to reasonably estimate the impact of the earthquake on our financial results, which will be broad across our entire business activities from production to sales,” Sharp said.

Sharp also announced changes to its joint LCD venture Sony,  called Sharp Display Products, announced in July 2009 and are to thrash out a new agreement which will see the ownership structure reconfigured.

 

Sony was originally to own 34  per cent of the LCD business.

Telstra Profit Slump 36% But $11B NBN Deal Lift Spirits

by

Telstra revenue has fallen 0.5 percent to $12.283 billion – from $12.342 for the same half year period in 2009.

Profits have fallen 36 percent in the period.  

The communication carrier has seen growth in sales of their T Hub and T Box. They also claim to have seen an improvement in customer satisfaction during the second half 2010.

David Thodey CEO said that they have signed nearly one million new mobile customers and 139,000 new retail broadband customers in the period. 

Operating expenses for the period fell 10.7 percent due in part to the axing of over 300 senior management.

Mobile revenue increasesd $566 million while mobile subsidies increased 44 % to $457 million. 

Total PSTN revenue (landline) declined by 8.4% which is a slight improvement on the 9% decline in the previous period.
Tesltra confirmed their guidance issued in August 2010 claiming that they expected ” flattish sales revenue and a high single digit decline in EDITDA. ”

Operating expenses increases by $750 million.  

Telstra say they have finalised key commercial terms for NBN and expect to deliver approx $9 billion in value to Telstra. 

They also said they had reached in principal agreement with the Federal government over the specific measures that are expected to deliver a further $2 billion in post tax net value.

More To Follow 

E-Shopping V In-Store, Who Wins?

by

I’ve been scanning the shelves of the likes of Harvey Norman, JB Hi-Fi and Dick Smith recently trying to find a decent, quality yet pocket friendly notebook.On the advice of several friends and technophiles I was told a Samsung would probably be my best bet.

HP and Dell were also other brands I contemplated from past user experience.

Ok, I thought that the brand(s) were pretty much clear in my head. Now, where do I buy it?

Having been searching for a Samsung notebook in-store for several weeks, it was to my surprise that some of the best deals I found were in a small, independent store in North Sydney, beating their larger rivals in the price stakes by miles.

The prices were among the most competitive I had seen, with HP’s Mini 210-1051VU starting at $269 and a Samsung N150 at a very tempting $349.

The same Samsung model was $498 in JB Hi Fi – almost $150 of a price jump. Harvey’s didn’t stock an equivalent model.
Bing Lee’s online price for the Samsung was $429, but said it was negotiable.

However, whilst browsing in any of these stores, I was never once approached by a member of staff asking if I needed help, which is hardly encouraging, especially considering that personal experience is one of the main pros of in-house shopping.

In JB Hi-Fi I had to ask the security guard where the laptops were kept and in the past have found staff, at best, indifferent to its customers.

To see what else was on offer, I turned to my PC and found, on price comparison site shopbot.com.au, the same Samsung went from $447 to $510 depending on the store – almost $100 more than the same model offered from a bricks and mortar retailer.

 

This also didn’t include delivery charges of about $10 on top of the sale price.

Similarly, the exact same HP Mini laptop was offered with an online starting price of $299 and $339 – $30 more than my local computer shop.

This quick test proves that in spite of the common perception that online offers better deals and choice, for my netbook purchase this definitely was far from the case.

However, stores that are lamenting the demise of their sales figures due to online competition should keep one important thing in mind – their service offering and the guarantee of after-sales care are two of their main strengths over online.

Some vendors themselves, including Sony, are already working towards providing more customer information, which could very well bridge the huge information gap between online and in-store, that so many customers now find themselves stranded in.

“In recent months several retailers have realised that there has to be a lot more education on the shop floor. We know that Harvey Norman is one retailer who is looking at better ways to service clients” says Toshiba’s Rob Wilkinson,  General Manager of  Australia’s Information Systems Division.

They should now be using these to the max.

Can Optus’ Android MyTab Hit The Button?

by

A budget 7 inch Android tablet from Optus has hit the shelves, but will it hit the mark with lower end users.
The telco appear to be confident the device, which is available since yesterday, will make its mark on the tablet market, competing with Telstra’s T-Touch Tab released last month, which retails at $299, offering a phone, internet content and 80,000 apps.

The tab has received good market reviews so far, with users impressed with its good value, resistive screen and decent performance compared to pricier models like the Apple iPad.

Although no projections on how much of the total tab market budget tabs will account for, Optus told ChannelNews they “expect the MyTab to perform favourably against other entry level products from manufacturers and telecommunication providers”.

The Optus My Tab will be available on Pre-Paid from mid-December for $279 on pre-pay and includes up to 3GB of Pre-Paid data and unlimited access to Facebook, Twitter and MySpace within Australia.

“With a number of tablets entering the market in 2011, we expect the entry level tablet market to remain competitive and we’re confident that the MyTab will be one of the most compelling options for consumers who are looking for a product which offers ease of use and bang for buck,” an Optus spokesperson said.

 

Made by ZTE, the cheapest tab on the Australian market will run on Android 2.1 and comes with a 7-inch screen, a 3-megapixel camera, upgradable memory (2GB MicroSD included) and WiFi compatibility.

Announced in November, along with the Samsung Galaxy Tab, which proved a massive hit with Australians so far, Optus were confident their entry-level offering, with “high-spec entry level tablet which provides the Android Tablet experience at an affordable price,” will take off.

However, it is likely to move to a post pay package after Christmas, although the exact cost of the plans has yet to be released.

The low price tab option is part of Optus’s bid to give its customers the option to choose the device, pricing structure and contract length that best suits their needs, Michael Smith, MD of Optus Consumer said last month.

Pirated.com Take CoverAs Hollywood Begins Internet Streaming

by

Online video streamer Youku purchases film rights from Warner Bros.This will allow the Chinese based video provider to show the Leonardo Di Caprio hit move ‘Inception’ one of the highest grossing movies of 2010, for five yuan (75 cents) on Youku Premium service, according to an AFP report.

The premium service allows viewers access to the latest films, TV series and concerts but without the nuisance of ads in between, as shown for free on their mainstream site.

Youku.com, which was founded in 2006, have also licensed content from other broadcasting houses, seeking to differentiate themselves from illegitimate content providers in a nation renowned for its thriving piracy industry.  

“Through building long-term partnerships with copyright holders and communicating with our media partners, Youku Premium is creating a whole new way for people to find and watch the content they want, when they want it,” Youku founder and chief executive, Victor Koo, said.

The Chinese company made its debut US stock market last month and was the strongest New York Stock Exchange Initial Public Offering in more than five years, according to AFP report, highlighting the lucrative industry on-demand content has now become.

 

“Since we launched the paid service last year we’ve discovered there was plenty of demand from our customers for movie content but there was a bottleneck in the payment solutions.  Now we’ve sorted that out and hope that this is a beginning for something new and exciting,” Koo told The Hollywood Reporter.

This deal is the latest move by Hollywood to get in on the online video streaming act, as viewers increasingly turn to online to view content.

No details of the value of the deal for Warnes Bros have been released.

According to Beijing based iResearch, the streaming site accounted for 259 million visitors and held a 40 percent share of all online videos viewed by its Chinese audience in September last.

1.9 m Broadband Connections Roll Out in 2011

by

Full steam ahead for mass internet connectivity as 2011 plans are announced.Plans for the provision of fibre infrastructure in new sites will take effect from January 1st as the National Broadband Network (NBN) estimates 1.9 million new premises will be connected to the fibre as they are built.

There will be no additional costs to consumers for the installation of broadband, with the NBN funding the provision of fibre and backhaul to new housing estates, said the Minister for Broadband, Senator Stephen Conroy.

Sub-contracting is also set to begin in the new year and build-operate-transfer arrangements who will install fibre on its behalf.

For infill developments of less than 100 premises, Telstra will continue to be responsible for delivering infrastructure and services.

The telco will largely be using copper infrastructure to provide interim solutions in these developments, pending the NBN rolling out its network.

Developers will be able to select a provider at their own discretion and these arrangements will be subject to existing contracts between providers and developers.

“From 1 January 2011, NBN Co will be responsible for the installation of fibre in all broadacre developments, all infill developments where it has fibre that is ready for service and capable of connection, and newly approved infill developments of 100 or more premises,” said Senator Conroy.

The plans will speed up access to fibre-based broadband services and provide the clarity people have been seeking, and “is a great outcome for new home buyers and Australia’s fibre future,” he declared.

Residential Development Council Executive Director, Caryn Kakas NBN’s announcement is a win for common sense and ensures that new communities can participate fully in the benefits broadband brings.

“This means that homeowners on the urban fringe won’t be hit with a $3000 charge nor will regional Australians face a cost of up to $5000 to pay for the delivery of the National Broadband Network to their communities,” she said in a statement.

“The Government, NBN Co and Telstra will now work closely with stakeholders to communicate and implement the changes,’ the Minister concluded.