World Famous Market Goes Under Cover

London’s famous Borough Market is undergoing a transformation as construction works to accommodate a new rail viaduct get underway.

The Borough Market has been in the news for all the wrong reasons over the last 12 months as traders succumb to the global retail downturn and criticise the market’s custodians for embarking on “corporate” improvements to a traditional market. Disaffection by some senior traders has resulted in them moving to a nearby alternative market.

It is hoped that all that turmoil will be put behind the market as it prepares to re-open in an updated structure including the glasshouse frontage shown in our photo.

Market Precinct Retailer Goes For Council

A contender in this month’s Melbourne City Council elections is Nick Parisi, owner and operator of Parisi Foods on Queen St (next to Mercat Cross Hotel). Parisi Foods are retailers and wholesalers of food items including nuts and dried fruit.
Nick is a member of the Shanahan/Chamberlin team who have a core aim to “Re-invigorate the Queen Victoria Market in consultation with traders.”
Traders with council voting rights might like to check out Nick as a candidate.

Tourist Watch – 12/10/2011

Tourist Watch – 12/10/2011

1.       Spring racing carnival continues with Caulfield Guinea’s this weekend.

2.       Melbourne Festival (art, music, theatre, dance) commenced 11/10/2012.

Latest Retail News – 12/10/2012

Latest Retail News – 12/10/2012

 

1.    Australia is now the world’s 12th largest economy.
2.    Australian stocks hit 14 month high.
3.    Mobile Internet downloads surge as 52% of mobile users switch to smartphones.
4.    Facebook launches new ecommerce function allowing customers to set up digital catalogues.
5.    Battery World wins Excellence In Franchising awards.
6.    Unemployment rises from 5.1% to 5.4% in September.
7.    IbisWorld predicts bleak outlook for tobacconists and confectionary retailers.
8.    Australian online retailer, Surfstitch, opens 8,000 sq.m. distribution centre in France.
9.    ACCC accuses Flight Centre of trying to force price control with major airlines.
10. Sydney’s Queen Victoria Building has taken out Gold in 2012 Asia Pacific Shopping Centre Awards.
11. Lingerie retailer, Victoria’s Secret, opens 4^th Australian store at Melbourne Airport.
12. Westpac reports consumer sentiment on the rise but still in negative territory.
13. Billabong takeover candidate withdraws offer.
14. Priceline opens first e-commerce website with 10,000 products on offer.
15. Retailer, Mothercare,  to be rescued as Myer inject funds and take over management.
16. Australia Post to spend $2 billion to upgrade parcel network and offer free digital mail boxes.
17. Crazy Clark's, Go-Lo, Sam's Warehouse group tells suppliers to stop deliveries.
18. Emirates Airlines fined $10 million for price fixing.
19. Online advertising accounts for 3.7% of US GDP in 2011.
20. China overtakes UK as 2nd biggest tourist supplier for Australia.

Steve Jobs Quotes

Steve Jobs died 12 months ago but his visionary approach to life continues to influence budding entrepreneurs (or entrepreneurs looking for re-invigoration) through a library of quotable quotes. We would like to recall some of those over the next few weeks.

On Technology: “I think it’s brought the world a lot closer together, and will continue to do that. There are downsides to everything; there are unintended consequences to everything. The most corrosive piece of technology that I’ve ever seen is called television – but then, again, television, at its best, is magnificent.” (Rolling Stone, 3/12/2003)

Ever Tried Haggling Online?

One of the things I like about my website is that transactions are clean and simple without that tiresome bargaining that goes on at my market stall. But that may all change if Amazon has its way.
Amazon is that incredibly successful website that sells just about anything and often at the cheapest price available. They have just patented a method of online haggling that will attempt to mirror a face to face exchange. The system allows buyers and sellers to make offers and counter-offers until a deal is reached or abandoned. To keep things in line a points system measures how each participant conducts themselves, so as to avoid things like false claims from suppliers and time-wasting from buyers.
The idea is only at patent stage but would add a new dimension to online buying if introduced.

More Comments From Mayoral Candidates

The Melbourne Leader has posted an article about QVM plans including a statement from Lord Mayoral hopeful, councillor Gary Singer.
- The Gary Singer and John So Jr team say the market is in an excellent location to become an "all-day and evening business and cultural activity centre".
See the full article here - http://melbourne-leader.whereilive.com.au/news/story/lord-mayor-candidates-promise-major-redevelopment-of-queen-victoria-market/

ACCC Investigation Could Help Traders.

The ACCC has been very active in retail price maintenance issues recently and at least one area of their investigations could make it easier for QVM Traders to obtain product ranges that were previously out of bounds.

Over recent years traders have complained about the refusal of some key suppliers to sell stock to market traders. Apparently the suppliers have been concerned about backlash from their other retailers if market traders undercut the retail price. This problem has been mentioned as one of the reasons for our clothing traders selling essentially similar ranges. Traders claim they would be happy to sell more mainstream brands, if suppliers would supply.

The problem has been the subject of discussion at QVM management level and a solution has not been identified, but maybe the ACCC is going to assist us. Recent investigations and court action by the ACCC have focused on price maintenance and the refusal of some suppliers to provide goods to cut price online operators. To quote an ACCC representative - “We do have investigations underway. We’re looking at online businesses that are being held back through a variety of means, not just price maintenance but also refusal to supply."

We believe this action by the ACCC could have implications for QVM traders. If you have contemplated approaching a supplier but have been concerned about being refused as a  "cut price" retailer, now might be the time to approach them again. The Government is obviously keen to stamp out any practice that limits a retailer’s right to buy and sell in a free market. If you do experience such a refusal, it looks like the ACCC would like to know about it.

 

Have Your Say - click here

What The Alan Jones Debate Means For QVM

The Alan Jones debate has moved from making inappropriate public comments to the rights of consumers to influence corporate direction. Alan Jones' radio station has withdrawn all advertising from his show as listeners vent their anger direct with the advertising companies. Jones’ complaints of what he calls "cyber bullying" by listeners could just be part of the "new consumerism" we often mention on this website.

Consumers have their own broadcasting voice thanks to social media and they are not afraid to use it. At QVM we get our fair share of social media comment and fortunately it is generally favorable. But that is not always the case and you only need to see exchanges like the current QVM T-shirt debate on Yahoo Answers (http://answers.yahoo.com/question/index?qid=20121005013001AAr1HW6 ) to see that the public is not shy about expressing its views online.

Is the Alan Jones case an example of "cyber bullying" or just a righteous public bringing an outspoken "shock jock" to account? One thing is for sure, we cannot ignore the influence of social media, or any online news source, if we are concerned about public perceptions and our trading reputation.

Have Your Say - click here

Comments:
12/10/2012 22:59:44  "I kinda agree a bit with them in yahoo as I said in the last meeting management need to do a bit of quality control I think as some of the products are giving us a bad name. The image needs to be revamped as a place where you can buy good quality merchandise at a cheap price."                 

Target's New Use For QR Codes

Target have introduced a new feature in their toy department (we think it is only in US) which makes it easier for parents to buy toys in secret.
Target highlights their top twenty toys in store and adds a QR Code display on each toy. Over stressed parents can discretely scan the code in front of their children and secretly order the toy for later delivery. So you get to show a range of toys to your children, get their reaction, and, instead of giving the game away by sticking it in your shopping trolley, you arrange for home delivery. Just another helpful use of technology.

Latest Retail News - 6/9/2012

Latest Retail News

1.    Share price of major retailers on the rise following RBA cut rate decision.
2.    Report finds Australian online retailers not embracing free delivery model.
3.    Retail sales rise just 0.02% in August.
4.    Queensland retailer fined over $200,000 for falsely claiming 100% Australian wool products.
5.    Baby wear and children's wear retailer, Mothercare, desperately seeks investor as it battles tough financial conditions.
6.    Banks criticized for not passing on latest RBA interest rate cut.
7.    Online growth rate slows in August from 28% in 2011 to 22% in 2012.
8.    Ikea removes women from Saudi Arabia catalogues.
9.    Topshop opens its second Australian store in Sydney.
10. EFTPOS sales gain 11% on June 2011 and exceed last Christmas sales.

Mayoral Candidates Mention QVM

GARY MORGAN, 70, executive chairman, Roy Morgan Research

"More bike lanes and safer bike lanes. CBD buildings to have more parking and create a network of underground carparks around the perimeter of the CBD, for example Queen Victoria Market, Princes Park, Yarra Park/MCG/Richmond."

 GARY SINGER, 56, deputy lord mayor 2004-08, barrister and solicitor

"The northwest precinct of Victoria Market and Flagstaff Gardens is a major opportunity on which we have failed to capitalise. If elected, we will examine ways to activate the area, opening up the corridors to the university and hospital precinct. We will create the Federation Square of the north. For 567 Collins St, we would work with the owners to create a park until the site is redeveloped. We would again try to reach some resolution with the owner of the Savoy Hotel site on the corner of Bourke and Spencer streets to create an open space for the public."

How Retail Rents Compare

 

 

Last weekend The Age reported a shift in retail content in shopping centres as traditional retailers closed their doors unable to contend with rent levels particularly in prime areas.

We thought it was time to see how our stall rents at QVM compare with the rest of the retail industry. We have used A$ per square metre per annum which is a measure typically used in real estate.

SHOPPING PRECINCTS:
Bourke St. Mall - $9700
Collins St. (top end) - $3900
Chadstone (luxury precinct) - $3900
Knox & Doncaster - $1550
Chapel St. South Yarra - $1300-1500
Toorak Rd. South Yarra - $500-900
High St. Armadale - $450-700

BY RETAILER:

Westfield Specialty Retailers - $1300
Premier Investments (Just Jeans etc.) - $1100
Myer - $210
David Jones - $190
JB Hi-Fi - $475

QUEEN VICTORIA MARKET – General Merchandise Stalls

K shed (long side) - $600
K shed (short side) - $965

 Obviously there are problems comparing rents from different areas and different types of retailers. In the case of QVM we have used the rent for a standard double stall (pillar to pillar) and assumed trading of 48 weeks per year. Traditional retailers have additional outgoing expenses for things like water, air-conditioning and electricity but we don’t have those services. Further complicating the comparison is the fact that we have to set up and pack up each day. However, ignoring all the complications, our rents sit roughly in the same area as Toorak Rd. South Yarra and High St. Armadale rents and we pay significantly more than the larger retailers.

 

Have Your Say - click here

Heads Up QVM T-Shirt Traders

The reputation of T-Shirt sellers at the Queen Victoria Market is at risk. Yahoo Answers is one of the premier question sites on the world wide web and somebody has just asked the following question –

 "How much does a good quality t shirt cost in queen victoria market, melbourne ?"

 So far there has only been one answer –

 "You mean--
Im wanting to buy a Tee Shirt at the markets
What part of the ''Made in China'' tag tells me it is any better than any other Tee Shirts on sale as they ALL have ''Made In China'' tags too?
In fact, now I come to mention it,there arent ANY Tee Shirts for sale here that ARENT ---
Made In China ???????
You dont beleive me--?? Check the neck tag Ducky !"

 Yahoo gives just four days for answers and this is a great opportunity for a QVM T-Shirt seller to give a professional response and earn some points for all traders. Go to this link to submit your response - http://answers.yahoo.com/question/index?qid=20121005013001AAr1HW6

What The QVM Desperately Needs Now

As we work our way through the toughest retail conditions in memory and head towards the first response meeting from the QVM Board on 25^th October, there is one critical ingredient all traders will be seeking – Leadership.

Retailers all around the world are struggling to adjust to the “new consumerism”. Some are down-sizing, some are expanding. Some are focussing their efforts online, some are tweeking their traditional communication channels. Some are waiting for things to turnaround, while others are “getting out there” and making changes.

This is no time for knee-jerk reactions. It is time for considered action with a fair amount of bravery. It is a time for leadership. Strong leadership from the Board will ensure another key ingredient for success – inspired participation from traders.

Have Your Say - click here

My First Visit To An Apple Store

I’ve heard apples (of the tree variety) being described as having a “zing” and that is not too far from the “buzz” I experienced at my first visit to an Apple (of the computer variety) store in Chadstone.

I could have bought my Apple product locally from another retailer but I chose to visit this much hyped retailer to see it for myself. My first impression was of the astonishing number of staff (identifiable by their blue shirts). There must have been 25 or 30 of them, and at 10:30 in the morning, they were all occupied. I later found out that some were conducting customer training, but the majority were serving customers.

My second impression was that there were no cash registers and I stood there looking a little confused for fully 3 seconds before a very pleasant young lady asked if she could help me. I had done my research online so I knew exactly what I wanted. I swear my shop assistant was disappointed that she wasn’t required to share her sales expertise, but she got down to giving the customer service Apple are famous for and before I knew it she had my name, street address and email address on a computer screen. I’m still not sure how she did that – saw my name on my credit card? – wirelessly accessed my iPhone? Never mind, I completed my card payment and then she made the understatement of the sale – “That’s all done. Your purchase will be here soon. Please have a look around while we wait.” I barely had time to say “thanks” and turn towards one of those glistening new pieces of high-tech wonderfulness when another assistant turned up with my purchase. There were a few other little exchanges about free training, extended warranties and things, and I was on my way.

 That buzz? It was the sound of doing business – so many sales conversations going on at the same time. No wonder Apple is 17 times more profitable than the average retailer. I really want some of that buzz at my stall!

Just Don't Make The Alan Jones Mistake.

Before email there was snail mail. Before social media there was, well... talking, news reports and various forms of communicating. Social media is something quite different. One of its key attractions is personal insights into people's feelings but it also extends into a useful business tool by indicating personal consumer preferences.

Stamping your  business presence on social media is quite simple. Just set up a business page, invite your friends to "like" your page and start posting interesting stuff. There is a technique to posting interesting stuff and you will find plenty of tips on line. Many Facebookers  have friends who seem to generate lots of "likes" with their Facebook comments and analyzing what they do is often a good guide.

 

Becoming a broadcaster is not difficult. Obviously we should avoid the outrageous and contentious so we don't offend like some of our high profile "shock jocks". 

In a separate post we have warned that social media is not going to generate immediate riches, but keeping your business and products in front of your customers on a regular basis can’t be bad for retailers.

Tourist Watch – 4/9/2012

 

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A rather quiet tourist week at the end of the local school holidays although ACT and WA still have a week of school holidays to go.

1.      The local A league derby with Victory v Hearts at Etihad Stadium on Friday evening will likely attract some regional visitors.

2.      Melbourne Fringe Festival celebrated until 14^th October.

Queen Victoria Regional Producer's Market

The heading for this post is taken from the Business Victoria website and refers to a joint effort between Business Victoria and QVM. It sounds like a great idea for regional small businesses to showcase their products.

Following is the text from the website -
“Forty regional Victorian small businesses will have a unique opportunity to show and sell their produce, artisan wares and/or services to Melburnians this Spring.
The Victorian Government has partnered with the Queen Victoria Market to host the first-ever Regional Producers Market at Queen Victoria Market on Sunday, 28 October 2012.
The arrangement means there are no booth costs or market overheads to individual exhibitors.
Organised by Small Business Victoria, the Regional Producers Market is aimed at bringing the produce, artisan wares and/or services of regional small businesses to the attention of the 30,000 people who visit Queen Victoria Market on a Sunday.
The Regional Producers Market would suit exhibitors of packaged foods, clothing, arts, crafts and possibly tourist destinations!
A selection panel from Small Business Victoria will assess your application. Priority will be given to exhibitors who are a small business and produce their goods or services in regional Victoria. Applicants may be interviewed and notified shortly after.
If you would like to be part of this exciting opportunity, all you need to do is to complete the Expressions of Interest form by Wednesday, 10 October 2012.”

Have Your Say - click here

COMMENTS:
04/10/2012 19:51:12  "30,000 you say... wouldn't that be nice. I wonder what magical algorithms got them to that extraordinary number. "                

Social Media Does Not Lead To Sales.

A survey of 77,000 purchases by Forrester Research found that only 1% came from social media sites like Facebook. Email marketing and search marketing were far more successful.

Social media is a great way of engaging with your customers but if you expect it to lead to sales you are likely to be disappointed. Commentators do claim however that social media is great for building awareness and establishing a reputation with customers that will lead to sales “down the track.”

 The market's Shop The Sheds promotion has a social media component but is backed up by email marketing and magazine content. The bottom line for General Merchandise Traders is that we should not expect direct sales from social media promotions but neither should we underestimate the importance of “being out there” as our customers embrace new ways of retail communication.

 

Have Your Say - click here