The customer is always right!

Over our January break we have had some interesting business news; I was fascinated to see the responses of the big retailers to internet sales GST issue.

For years now we have been living in a global business world where retailers and now customers are choosing the products they want from around the world.

Few retailers (none that I am aware of) have adopted a policy of protecting Australian suppliers and Australian jobs and only stocking Australian made product. Most have headed to China, often cutting out not only the local suppliers but the middleman as well.

Some have promoted ‘Made in Australia’ but generally alongside much cheaper imports.

As a supplier of Australian made goods (griffin+row skincare) I have always understood that we have to develop something with a unique USP at a competitive price to compete against the global cosmetic giants.

Target gave us a great opportunity by launching our products in 150 stores. Target showed real interest in the fact that this range was made in Australia, with largely Australian ingredients, and that this meant a reduced carbon footprint.

As I have presented our range to most of the major retailers it is interesting to note the lack of interest in protecting Australian jobs and businesses. These retailers are looking for the best deals, they are driven by margins and branding.

Fair enough I say, that’s just what business is about.

So why did these same people complain that the internet is unfair? I believe they did protest too much and in so doing gave a huge amount of free publicity to their dreaded competitor – the internet.

I have friends who had no idea they could get so much on the internet and now feel confident to shop this way, having been given sites to go to by the mass media, as well as price savings they could expect.

The lesson in all this for me is avoid at all costs giving your competitor free publicity, don’t complain, and in the end it’s the customer who decides on the basis of price, quality and service.

It’s this latter area that retailers need to look at, as this can be their true competitive advantage.

Marcia Griffin’s latest book, High Heeled Success (pictured left), is a frank account of building a business from a solitary sales person to a multi-million dollar business with 4,700 sales consultants around Australia and New Zealand. Contact Marcia to purchase. Marcia’s latest venture is skin care company griffin+row, an amazing range of naturally effective skincare that Target immediately ranged in 154 stores.