On behalf of the Board, the ASGA membership and the entire sporting and active lifestyle goods industry I’d like to thank you for your support in 2017 and wish you a happy and profitable Christmas and holiday season.
This year has been a busy one for the ASGA Board, with four resignations and a couple of new appointments. First to go was Sally Bateman from Nike, who left to take up a position outside the sporting goods industry.
More recently the Board has had two long-serving members leave. Erica Berchtold, resigned to go on maternity leave for the birth of her second child, and Guy Tuthill finished up after many years of great service.
Erica has been President through a significant period for ASGA including being a key driver for change for the better with our strategic direction placing greater focus on member services. Guy’s extensive service and experience over a long tenure added considerable value through his industry knowledge and insights.
We also lost David Elliott, an independent director from the AFL, who has given us very valuable insights into the sporting goods sector from within one of the largest sporting codes in the country.
On behalf of the Board and the wider membership, I’d like to thank Erica, Guy, Sally and David for their excellent service to ASGA. We wish them all the very best personally and professionally.
Following a Strategic Planning Review in December 2016, which has led to a more focussed direction, this financial year, has seen the introduction of a new ASGA mission statement and a strategic plan that has ASGA’s Board concentrating on activities that will provide better support to our members and their businesses directly.
What has been very pleasingly to see and hear is the resoundingly positive feedback on member events and business insights which are developing stronger engagement for the ASGA membership, while assisting their business to be aware of cutting edge trends and industry best practice. We are looking forward to sharing some major announcements in the coming months and we’ll keep members and the wider industry informed of our progress.
Finally, the Low Value Threshold has finally been scrapped – or, at least, the legislation has been passed and the new laws, requiring overseas vendors to collect GST at point-of-purchase and remit it to the ATO, will come into effect on 1 July 2018. This has been a long, difficult road and I’m very pleased to be able to report success in this campaign back to the members.
The ASGA office will be closed from 5pm Wednesday 20 December and re-open on Monday 8 January. I will still be available on both email and phone during that time, if there are any urgent issues that arise, but will be on leave and so unlikely to respond promptly! Have a great Christmas and New Year and I look forward to working with you all again in 2018.
The Parliamentary Committee looking at the issue of modern slavery in Australia (and in the supply chains of Australian businesses), has released its final report – Hidden in Plain Sight.
The report makes 49 recommendations to improve Australia’s efforts to combat modern slavery here and around the world.
ASGA made a submission to the inquiry and gave evidence to the Committee at one of the public hearings.
As noted in a media release, the Committee recommends that the Australian Government introduce a Modern Slavery Act in Australia similar to but improving on the UK Modern Slavery Act 2015.
The Committee recommends that the proposed Act should establish an Independent Anti-Slavery Commissioner and supply chain reporting requirements for entities operating in Australia. The Committee further recommends improvements to:
- support for victims (including a national compensation scheme);
- criminal justice responses (including training for frontline officials); and
- protections for workers vulnerable to exploitation (including changes to Australia’s visa framework and establishing a national labour hire licensing scheme).
The Committee heard particular concerns about ‘orphanage trafficking’ and also recommends a range measures to ensure that Australians do not perpetuate the exploitation of children in overseas orphanages through donations or tourism. This includes establishing a register of approved orphanages and a national awareness campaign on the risks of orphanage trafficking.
Chair of the Foreign Affairs and Aid Sub-Committee, Mr Chris Crewther MP, said “modern slavery describes some of the greatest crimes our time.”
“This report highlights that modern slavery is often ‘hidden in plain sight’ across a range of industries in Australia and in the global supply chains of businesses and organisations operating here. An Australian Modern Slavery Act, as recommended by this report, will make a significant contribution to ensuring that, here in Australia, we are doing all we can to combat these crimes.”
ASGA will continue to work with the Government and other organisations to ensure any legislation works as intended and does not place unnecessary burdens on Australian sporting and active lifestyle businesses.
The report is available from the Committee’s website: www.aph.gov.au/modernslavery.
According to a media release by the Australian Retailers Association, research by Neto indicates that, given the ever-increasing health consciousness of Australians, coupled with the onset of summer, we will likely see a trend towards outdoor and health-centric gifts over Christmas.
Ryan Murtagh, Founder and CEO of Neto, said “Although 40 per cent of consumers state clothing, shoes, handbags and accessories are their most frequent online purchase, sports and recreation was Australia’s second fastest growing industry in 2017 with average monthly sales growing by 39 per cent this year.”
Neto’s latest State of E-Commerce Report identified a significant growth in online gifting this year, with the average retail basket size increasing by 16 per cent in 2017.
Executive Director of the ARA, Russell Zimmerman, said “Due to the ease and convenience online platforms provide Australian shoppers in the 24-hour marketplace, the ARA estimates online purchases will account for 13 per cent of overall retail sales in the next five years.”
With recent Hitwise data illustrating a 55 per cent year-on-year increase in online visits during Boxing Day 2016, and searches for this year’s Black Friday more than doubling year-on-year, the ARA believe consumers will continue to shift their spending to online platforms.
“As online retail is growing at 5 per cent every year, our recent research with Hitwise illustrates more and more Australians are searching for Christmas gifts online,” Mr Zimmerman said.
With basket size increasing, and 5,000 merchants now offering Afterpay, Mr Zimmerman said those merchants who offer Buy Now, Pay Later options will have a distinct advantage this Christmas trading period.
“Transactions via Buy Now, Pay Later options have increased by 147% this year, therefore, we can only expect online retail sales to rise during Christmas and throughout the new year,” Mr Zimmerman said.
Please follow the links to view ARA and Roy Morgan’s 2017 Annual Pre-Christmas Sales Predictions, Neto’s 2017 State of eCommerce Report and Hitwise’s Pre-Christmas Shopping Trends and Products.
The organisers of the Golf Business Forum recently announced that Zach Shor, COO of Topgolf International, will be a keynote speaker at next July’s event in Melbourne.
Topgolf is a phenomenon when it comes to blending sports and socialising. With 33 venues entertaining more than 10.5 million guests annually, Topgolf is truly everyone’s game and is a favourite with golfers and non-golfers alike.
Topgolf, in an exclusive partnership with Village Roadshow, will open its first Australian venue on the Gold Coast in mid-2018. The $35 million destination is the first of 6-8 that Village hopes to open in Australia. It is estimated over 400,000 visitors are expected in the first year.
Zach is spearheading the international rollout for Topgolf, and will share insights on Topgolf’s success.
In another post, the team behind the Forum discuss what’s required to put together an event like the Golf Business Forum. They received some great feedback on their speakers in 2016, and in planning for 2018 they want to keep their focus on what worked well, and identify the new topics that need attention.
Working together with Platinum Partner, MPower MSL, and Foundation Partner Golf Australia, the team behind the Forum are excited to deliver a bigger and better Golf Business Forum 2018; to be held in Melbourne from Monday 30 July to Tuesday 31 July.
The 2018 Golf Business Forum will:
- Attract more than 250 people from across the Australian golf industry
- Continue to connect the industry with owners and operators from a diverse range of golf facilities
- Develop more innovative thinking, critical to industry growth
- Provide key education and training opportunities.
ASGA is please to support the 2018 Golf Business Forum.
For more information about the Golf Business Forum please visit the event website.
BDO has released their annual Spend Trend report to reflect how the retail industry has fared in 2017.
Now in its fifth year, this report provides a comparative analysis of how Australian retailers are performing against their international competitors, and whether the much talked about influx of global players is impacting local revenues and profit margins.
In a foreword to the report, John Bresolin, National Leaeder Retail at BDO, said: Technology, legislation and competition – 2017 had it all, with some retailers shining through, and others struggling or even failing to navigate the choppy waters.
International market entrants such as Amazon, are leading the way in retail technology adoption and have Australian retailers scrambling to keep up. In addition to this, key legislative changes pose significant impact to the Australian retail sector.
Australian retail must adapt to increased competition from new international market entrants. In a bid to compete with these international players, Australian retailers have taken to offering discounted prices to increase the volume of sales and retain their market share.
Retailers have been chasing volume and sales, but sometimes at the expense of profit margins.
BDO analysis suggests that whilst Australian retailers have experienced an average 11.5 per cent increase in revenue, their net profit margins have dropped by 7.8 per cent. This contrasts to what’s been happening on the international stage. Global retailers have experienced a drop in revenue, but have been able to improve their gross profit margins.
The key for Australian retailers in the coming year will be finding out how to differentiate from an ever-increasing influx of new international players. High-value retail is an obvious route to take, and Australian retailers are well placed if they embrace new technology.
Importantly, Australian retailers need to keep their market share without impacting their margins too much. In all of this, keeping the customer at the heart of any conversation is paramount.
For a copy of the Spend Trends report, please visit the BDO website.
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