A
trader called me a "management supporter" this week and
I had to correct him. I am in fact a "trader supporter" but I happen
to feel that trader's best opportunity for future success lies in a co-operative
relationship with management.
For
me the equation is quite simple. Traders are the core of the market. We are the
business individuals who provide highly desirable services to a whole range of
customers. That is what makes the wheels turn. QVM provide essential services
that enable those wheels keep turning efficiently, and they collect rent to
finance the whole deal. We can't do without each other.
QVM
are the owners of the facility. They have a responsibility to make sure that the market makes a significant contribution to the City of Melbourne. I know that there is a passionate argument that
"the people own the market" but stick with me here. QVM provide
facilities that enable us to conduct our businesses - essential things like
display space, loading facilities, parking for customers and a range of ancillary
services. In the past they haven't had to do much else, but that has all
changed and we need them for a lot more these days.
What's
missing these days is unhindered consumer demand. "Build it and they will
come" used to apply as we set up our businesses and fed off crowds of
eager consumers. At times there are still crowds but the "eagerness"
has certainly diminished and we need to correct that. Like retailers all around
the world, we need to become more knowledgeable about our customers and their
buying patterns.
The
complexities of the retail revolution have made sure that many more retail
functions are best done by a central authority like QVM. Things like marketing,
social media, customer research including basic counting, planning for city
change, planning for consumer change, adjusting for new technology, are all
best done by a central entity. You simply get more "bang for your buck"
by coordinating all these types of functions in one place rather than spreading
them across individual traders.
And
there is a basic philosophy inherent in all this. More can be gained by
co-operation than by resistance. There are some within our Trader ranks who
believe that hard-nosed resistance will benefit traders. It is all about
demanding our rights. You may question how many rights exist in the middle of a
retail recession with retailers collapsing all around us, but that is not
really the point. We apply basic co-operation and respect in our relationships
with customers and with each other. Extending that to management just makes a
lot of sense and we have much to gain.
QVM
has experienced comparatively buoyant trading conditions for decades. Customers
just kept coming, and by comparison with today, we had it easy. That has all
changed and every retailer on earth is desperately trying to find the right mix
of options to achieve retail success. In our case a co-operative relationship
between traders and management seems to be the best way of maximizing the
opportunities. We need to work together on this.
By
Greg Smith.
COMMENT:
It can be very hard for traders to use social media and many may argue that they don't see returns from it. Social media is not useful for generating immediate sales (although there are exceptions) but what it does generate is brand awareness and recognition.
What is key is interesting and unique content. We often ask as traders how we can reach a greater audience - the opportunity is there for us at small to no investment. "
Thanks for the analysis - Ed.
8/5/2017 17:13 Co-operation - ""The
complexities of the retail revolution have made sure that many more retail
functions are best done by a central authority like QVM. Things like marketing,
social media, customer research including basic counting, planning for city
change, planning for consumer change, adjusting for new technology, are all
best done by a central entity. You simply get more ""bang for your
buck"" by coordinating all these types of functions in one place
rather than spreading them across individual traders."
This is true with the exception of social media. Social Media is a form of marketing that is far more effective if traders were to promote it. It is a very rare scenario where you could have the possibility of hundreds of accounts that are linked to a similar cause. Having a central entity (qvm) invest money into sponsored posts and campaigns is very costly when you assess potential gains. In comparison to use a simple example of Instagram if we were to coordinate just 100 of our traders to use a unique hashtag that would have a far broader and much more relevant reach.
This is true with the exception of social media. Social Media is a form of marketing that is far more effective if traders were to promote it. It is a very rare scenario where you could have the possibility of hundreds of accounts that are linked to a similar cause. Having a central entity (qvm) invest money into sponsored posts and campaigns is very costly when you assess potential gains. In comparison to use a simple example of Instagram if we were to coordinate just 100 of our traders to use a unique hashtag that would have a far broader and much more relevant reach.
It can be very hard for traders to use social media and many may argue that they don't see returns from it. Social media is not useful for generating immediate sales (although there are exceptions) but what it does generate is brand awareness and recognition.
If we were
to analyse Bruce Pham's video on the production of his socks, which is sitting
at 21.4k views, the $ value to attain
these views through paid advertising would be over $5k. You don't need to have a large following to
achieve this result either - Bruce has a base of 333 followers on Facebook.
What is key is interesting and unique content. We often ask as traders how we can reach a greater audience - the opportunity is there for us at small to no investment. "
Thanks for the analysis - Ed.
