November 2017 Newsletter

Shannon Headshot - Beard2   

Executive Director’s Report

You’re invited to see David Hardy and Noel Leung, both directors with KPMG’s Retail team, speak about how Amazon will disrupt the Australian sporting and active lifestyle goods market at a networking event on Thursday 30 November in Melbourne.

The networking event precedes the ASGA Annual General Meeting, which will report back to the members about the 2016-17 financial year for the Association.

Our previous networking event in June saw over 70 guests from the sector hear from three ASGA board members – Gayle Dickerson from KPMG, Erica Berchtold from Rebel Sport and Julie Stevanja from Stylerunner – speak about the future of sports retail in Australia.

This event will look at how the entrance of Amazon into the Australian market will have an effect on both brands and retailers here, given the US online giant is expected to launch in time for Christmas.

It’s also a great opportunity for the sporting and active lifestyle goods sector to network and hear from the ASGA President, Andrew Reed, about our plans for the future.

ASGA Networking Event and AGM
5pm – 7pm Thursday 30 November
KPMG Melbourne
Tower Two, Collins Square
727 Collins St, Docklands

To RSVP please call me on 03 9320 2655 or email shannon@asga.com.au

 

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Productivity Commission supports vendor registration model for overseas GST collection

ASGA is pleased to report the Productivity Commission supports the legislated Vendor Collection Model, which means overseas retailers will be forced to collect the GST of goods valued under $1000 at point-of-purchase.

The Commission was asked to investigate if the Government’s legislated vendor collection model was the best option, or if there were other options that would be more feasible. Potential other options include collection of GST at the border, by Customs; collection by freight transporters; and collection by banks and other financial institutions.

ASGA has consistently argued that the vendor model, reinforced by a limited border collection model, would be the most effective solution. We’re very pleased the commission agreed with us about the vendor model, although note with some disappointment that they didn’t follow our suggestion to impose a limited border collection model as well.

This report should put to rest any further debate on this issue, before the proposed start date of 1 July 2018 timeline for the GST legislation to be implemented.

As noted in the PC’s report, while this is the best option, it is not fool-proof – the government will need to keep track of how well the new legislation works, to ensure overseas retailers comply and GST is collected by them.

With technological advances and changes to laws in other countries, the Government will also need to ensure the vendor model remains the most appropriate over time, or if it is superseded by more effective methods.

ASGA members, and the wider Australian retail sector, can be very pleased with the Commission’s report and an end to this issue, which has gone on for far too long. While it is not perfect, it will go some way to levelling the playing field for Australian retailers against their international competitors.

ASGA has been lobbying the government for this change for many years. We’ll keep an eye on how well it progresses after it is implemented and if any changes should be made going forward.

 

Retail Fulfilment Summit 18   

Retail Fulfilment Summit 2018

Part of 2018 Retail Week
Date: 26th – 28th February 2018, Pullman Melbourne Albert Park

ASGA members to get a 10% discount to the Retail Fulfilment Summit.

Retail Week presents an unrivalled opportunity for the industry to meet in Australia’s retail capital for five days of leadership development, collaboration and most importantly, action.

As retail fulfilment has become critical in meeting consumer expectations and driving sector growth, Retail Week launches the three- day Retail Fulfilment Summit. Gathering over 60 global, leading-edge speakers from emerging and established retailers including: Amazon, Costco, Kmart, My Chemist Warehouse, Coles, John Lewis, New York & Company, IKEA, Woolworths Liquor, Catch, Officeworks plus many other retail pioneers, will ensure attendees leave prepared to excel in the next phase of retail fulfilment evolution. With government, peak body and industry-wide support, this event will unleash inspiration and a renewed commitment to innovation throughout the sector.

Four conferences in one, with content streams covering:

  • Path to purchase
  • Pick & pack operations
  • Last-mile delivery
  • Retail tech disruption

The retail industry holds so many events throughout the year that it can be hard deciding which to attend. Here are six reasons why you should add the Retail Fulfilment Summit, held in Melbourne from 26-28 February 2018, to your calendar.

  1. Industry backed

The summit is truly for the industry and is supported by leading groups including the Australian Sporting Goods Association; the National Retail Association; National Online Retailers Association; and the Australian government.

Because it is focused on supporting retailers, ticket prices are extremely affordable, ensuring more people can attend and learn about the future of retail fulfilment, supply chain and customer experience.

  1. Hear from Amazon

Amazon is a hot topic in Australia at the moment but it’s rare that we hear from the company itself. At the Retail Fulfilment Summit you will, with Amazon vice president, global innovation policy and communications Paul Misener presenting.

  1. International insights

It truly is an all-star line-up and other international speakers include retail visionary and co-founder of the Center for Advancing Retail and Technology in the US, Sterling Hawkins. He’s at the forefront of innovation in retail and will be discussing how to excel in warehousing, automation, and delivery. And did we mention he’s bringing along a robot?

Bruce Harryman, head of network planning at UK department store John Lewis, is another big-name speaker. Harryman was instrumental in launching John Lewis’ multimillion fulfilment pods that have helped keep it competitive in terms of ecommerce, and he will discuss this and the future challenges facing retailers.

  1. Go your own way

Along with the keynote presentations, the summit offers four different streams and multiple roundtable discussions, so you can personalise your experience.

  1. Something for the C-Suite

The Retail Fulfilment Summit opens with C-Suite day, which is a unique opportunity for senior decision makers to get together to discuss strategic challenges that are shaping and disrupting the industry. If you’re a retail exec, you’ll want to be there.

  1. It’s part of Retail Week

The Retail Fulfilment Summit is part of Retail Week, a five-day event dedicated to supporting innovation in the Australian retail industry. It is a jam-packed week of events, inspiration and education covering every aspect of retail, from customer service to marketing and everything in between.

To find out more about the Retail Fulfilment Summit and book your place today, click here.

Please quote VIP code WFXASGA for ASGA members’ 10% discount.

For more information or to register on, please contact Akolade on: Phone: 02 9247 6000 Email: registration@akolade.com.au Register Online Now – http://bit.ly/SCM21WFXASGA

 

ARA Logo   

Australian shoppers predicted to spend $50 billion this Christmas

ASGA allies the Australian Retailers Association (ARA) and Roy Morgan Research’s Annual Pre-Christmas Sales Predictions, indicate Australian shoppers will spend more than $50 billion in retail stores over the Christmas trading period from November 15 to December 24, 2017.

In a media release, Russell Zimmerman, ARA Executive Director, said although the Australian retail industry has been struggling over the last few months, the ARA and Roy Morgan have tipped Australian consumers to spend 2.8% more on Christmas this year, compared to 2016.

“While the latest retail trade figures have shown a considerable decline, our combined Christmas sales forecast with Roy Morgan demonstrate that Christmas sales will be a little bit better than recent figures; unfortunately this estimate is still well below the 4-5 per cent growth that retailers would like to see this Christmas,” Mr Zimmerman said.

“As online retailing continues to grow, we predict online gift purchases to increase by 3.96 per cent, and expect Australian shoppers to purchase most of their gifts online this year.”

Amongst the states, Victoria, New South Wales and Tasmania will have a considerable Christmas trade this year, with these three regions showing the strongest predicted growth across the country.

“Although we have seen retail sales slowly decline across all categories, we believe Christmas will see this year’s trade improve for many Australian retailers,” Mr Zimmerman said.

“There may have been a lot of change throughout the industry this year, but one thing is for sure, and that’s the fact that Australian’s love Christmas, as Christmas is the season of giving.”

The ARA continues to partner with Roy Morgan Research to deliver the only professionally researched retail figures in the industry annually, with proven year-on-year results.

 

ACCC Logo   

ACCC target clothing retailers during Christmas trading

The ACCC has found some retailers may be misleading consumers about their rights under the Australian Consumer Law (ACL) after reviewing the online policies of several large Australian clothing retailers.

In a media release, ACCC Deputy Chair Dr Michael Schaper said “This year the ACCC has received over 750 complaints regarding consumer guarantees for clothing purchases. We are reviewing the policies of retailers at busy times such as Click Frenzy, in the lead up to Christmas and during the Boxing Day sales period.”

“If customers are looking to return faulty goods after this week’s Click Frenzy online shopping event, the ACL gives them the right to choose between a refund or replacement if a product they have purchased has a major fault, even for sale and clearance items. If a product has a minor fault, retailers can choose to provide a free repair instead of a refund or replacement.”

The ACCC is engaging directly with 12 retailers to ask them to amend their online returns policies to avoid confusing or misleading consumers.

“Businesses must ensure the rights of consumers are honoured when they try to return a faulty product. Retailers must not misrepresent the consumer law and the rights of their customers in the wording and advertising of their returns’ policies. We will take further action if a retailer is not fulfilling its legal obligations under consumer law,” Dr Schaper said.

“Misleading representations regarding online refunds and returns are one of the most complained about issues reported to the ACCC. Already this year, the ACCC has received over 24,000 contacts about consumers guarantees so it is important for us warn the retail sector and educate consumers as we enter the busiest shopping period of the year.”

 

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Make Healthy Normal campaign doing well in NSW

Make Healthy Normal is a campaign by NSW Health designed to help people make small lifestyle changes that can make a big difference to their health. It focuses on both nutrition and exercise and works with at-risk communities across the state.

A total of 14 Make Healthy Normal (MHN) activations were conducted at community events across NSW between April and October 2017, to reach families with children aged 5-12 years, men, Aboriginal people and Culturally and Linguistically Diverse(CALD) communities (Arabic, Chinese and Vietnamese). The activations for Aboriginal people included Koori Cook Offs in partnership with the Heart Foundation, and Koori Moves. Other activations engaged people through healthy snacks and outdoor games, such as totem tennis, soccer and hula-hooping.  

  • Six events were conducted with Aboriginal communities including a Coonamble Aboriginal Medical Service event; the Colour Run of Kempsey; NAIDOC Week events at Moree and Nowra; a Tharawal Aboriginal Medical Service event at Campbelltown; and the Koori Knockout Carnival at Leichhardt.
  • The Mt Druitt Men’s Shed held an event focused on men during Men’s Health Week. 
  • CALD populations were a focus of two events, Refugee Week in Blacktown and the Moon Festival in Cabramatta.
  • Five events focused on families, but were also attended by the other priority populations –  at the Dubbo Show, Five Lands Walk in Avoca/Central Coast, the Narrandera Show, Kidtopia in Parramatta and the Murrumbateman Field Days.

  Approximately 15,000 people engaged with the MHN activations at these events, with many more reached through associated social and media strategies.

ASGA is pleased to support the Make Healthy Normal campaign.

 

NSC Logo NEW   

National Sports Convention 2018

The 2018 National Sports Convention is expanding with the support and encouragement of the industry. The prominent venue, the Melbourne Convention and Exhibition Centre, has been booked 16th – 18th July 2018.

Australia’s largest sport, recreation and physical activity convention is evolving to bring together a broader range of conferences, masterclasses and symposiums focused on growing participation.

The 2018 Convention will explore effective ways of marketing and communicating with target audiences to activate and retain them in sport and recreation. It will also feature innovative ideas on what future facilities, technologies and programs will be needed to satisfy growing demand.

The event brings together collaborators, peak bodies, organisations and key influences to host a range of knowledge sharing, skill development and networking opportunities on how to activate the country to be more active and participate in community sport and recreation.

Businesses running an exhibit have the potential to reach a targeted audience of more than 800 delegates from all levels of government, sport, education, not-for-profit, and the commercial sector.

Please visit the Convention’s website for more information and to request an exhibitor prospectus.

 

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Safety standards for exercise bikes and treadmills remain the same

Safety standards for exercise bikes and treadmills have been maintained to ensure the safety of users, according to a recent announcement by the Federal Government.

In a media release, Minister for Small Business, Michael McCormack, said “Australians should feel confident when they purchase a good, the item will operate in a safe way when used correctly.

“We have all been on a treadmill or exercise bike and understand the physical pain inflicted as we try to get in shape but that is where the pain should stop.”

Exercise cycle designs which were common before the standard was introduced in 1994 were typically chain-driven and used fan-style wheel spokes to create resistance, both of which were major causes of injuries.

“The primary purpose of the safety standard for exercise cycles is to reduce the risk of injury, especially to children, including traumatic amputations and crushing caused by exposed chains and spokes,” Mr McCormack said.

“Since the introduction of the standard, the design of modern exercise bikes has changed to remove these safety hazards. It has been 10 years since the standard was last updated and this decision means these products, whether they are manufactured here in Australia or imported from overseas, will retain the current safety standard preventing any cheap alternatives with bad design features or a reversion to past designs appearing in the marketplace.”

Mr McCormack said the safety standard for treadmills has been reviewed and maintained to ensure suppliers display clear warning labels alerting users, including parents and carers, of the dangers associated with treadmills.

“Treadmill design and technology has come a long way over the years to include handrails and emergency stop equipment increasing user safety,” Mr McCormack said.  

“I have decided to keep the current safety standard in place because young children can sustain severe friction burns if they come into contact with the moving conveyor belt of a treadmill.”

“Treadmills are very popular in Australian homes but they can be very dangerous and a clear warning label will help ensure parents keep young children away from these machines, even when they are not in use.”

 

CAS Logo   

Priority actions for Confederation of Australian Sport

ASGA ally the Confederation of Australian Sport (CAS) has developed a list of priority areas to help Australia combat the growing physical inactivity epidemic.

Priority 1:

Establish a National Physical Activity Strategy

  • As part of the Australian Government’s preventative health policy, the National Physical Activity Strategy should be developed to provide policy direction with input from all key stakeholder groups.
  • The proposed National Sports Plan should be developed as an integral component of the broader National Physical Activity Strategy.
  • Enshrine a commitment to the target to reduce Physical Inactivity by 15% over 5 years

Priority 2:

Targeted funding for community sport to increase quality and reduce financial barriers to participation

  • Through funding and support for community sport clubs to ensure sustainability and enhance quality delivery of physical activity and skill development of volunteer personnel
  • Ensuring participation in sporting activity is more affordable for families
  • Conduct research into the effectiveness of vouchers, rebates and other incentives to grow sports participation
  • Building a Social Inclusion fund to support those who are financially disadvantaged.

Priority 3:

Advocacy and consistent messaging of the benefits of physical activity

  • Encouraging School Principals to be advocates for physical activity and providing resources to support this
  • Development of consistent messages and approach across Education, Sport and Health sectors and across the broader community
  • Providing useful advice and strategies for parents to encourage their children to be physically active
  • Identification of the specific Health promotion messages ensuring effective delivery through the system.

Priority 4:

Building the capacity of current and future teaching staff

  • Primary Schools – by funding the national roll-out of the ‘Physical Education and Physical Literacy’ (PEPL) program4 to assist Teachers to maximise physical activity opportunities in the classroom and linking school and community sport (coordinated by Prof Dick Telford).
  • Secondary Schools – by provision of ongoing professional development and mentoring to increase skill, competence and confidence levels of teachers of physical activity, particularly recent graduates and retrained/redeployed staff. Increasing the numbers of Health and Physical Education secondary school teachers suitably trained to meet shortfalls.

Priority 5:

Maximising access to and use of school and community sporting facilities

  • Assistance to School Principals in building collaboration with external organisations to maximise the use of school facilities for mutual benefit
  • Coordination with Local Government to maximise the use of community facilities at the most reasonable cost
  • To increase the availability of facilities, equipment and other resources to community groups and schools.

Priority 6:

Whole of community program targeting low SES community

  • Through piloting a whole of community physical activity strategy in a targeted low socio-economic area with substantial evidence of low physical activity levels and high levels of preventable chronic diseases (coordinated by the Australian Health Policy Collaboration)
  • Brimbank City Council in Melbourne’s western suburbs identified as a potential location.

Priority 7:

Enhanced communication and referrals by medical and allied health professionals and the school system

  • Through funding and development of a national Online Local Sports and Physical Activity Directory – to assist GPs with local sport referrals for their patients, and for use by allied health professionals, counsellors, school teachers and potentially members of the public.

CAS will be compiling a pre-Budget submission and working on policy proposals for all political parties leading into the next Federal Election.

ASGA agrees with the majority of these priority areas and we look forward to working with CAS and other stakeholders to progress them at the state and federal level.

 

Australia Map   

News from around Australia

New South Wales
 
Northern Territory
 
South Australia
 
Tasmania
 
Victoria
 
Western Australia

 

WFSGI_Logo_NEW   

International News

In the latest edition of the WFSGI News Alert you’ll find articles about:

Mizuno – Mizuno has announced its second quarter’s financial result.
 
adidas – We are even more pleased with the quality of our growth, which is clearly reflected in the exceptional profitability improvement in Q3,” said adidas CEO Kasper Rorsted.
 
SGB Media – The British designer will join Reebok’s coalition of unapologetically accomplished women to push new boundaries in the brand’s long-time mission of empowering women to be their best.
 
Footwear News – President, chairman and CEO Blake Krueger attributed the better-than-expected performance to the ongoing progress of the firm’s Way Forward plan — which focuses on adjusting the company’s portfolio as well as ramping up speed and innovation.
 
SHRED – With unrivaled clarity, contrast, and performance, Shred sunglasses establish a new standard in optics designed for an active lifestyle 
 
ISPO – The Market Introduction Program for China answers the most important questions that all international companies might have. Attend our three day seminar (January 22-24, 2018) at ISPO Beijing and boost your business in the Asian markets.

ENDS