Retail Industry of Australia and Thailand

This document discusses the structure, size, profitability, and challenges of the retail industry in Australia and Thailand. It explores the impact of cultural aspects on the industry and highlights the differences in labor, regulatory environment, buying behaviors, and brand preferences. The document also examines the political and economic factors affecting the retail industry in both countries.

Running Head: RETAIL INDUTSRY OF AUSTRALIA AND THAILAND
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RETAIL INDUSTRY OF THAILAND AND AUSTRALIA
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9/10/2019

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Contents
Retail industry of Australia V/S Thailand (structure )..............................................................2
Retail industry of Australia and Thailand (size and profitability).............................................3
Challenges in the retail industry of Australia:............................................................................4
Labour:...................................................................................................................................4
Regulatory environment: .......................................................................................................5
Buying behaviors and brand:.................................................................................................5
Challenges for Thailand retails..................................................................................................6
POLITICAL FACTORS: ANTI-TRUST ISSUES................................................................6
ECONOMIC FACTORS: NEARLY $30 TRILLION DOLLARS IN A COUPLE MORE
YEARS:..................................................................................................................................6
Cultural aspects that impact the reatil industry of thailand and australia.................................7
REFRENCES...........................................................................................................................11

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Retail industry of Australia V/S Thailand (structure)
The retailers are the mediators among the customers and the producers. These effective and
efficient operations that are important in order to make sure that the customers have access to
a variety of goods choices and also at the best prices. The government asked the commission
to undertake some of the inquiries in the implication of globalisation aimed at the retail
industry and the appropriateness and sustainability for the current unintended taxation
preparations in the particular setting. All of these things link to the construction and
presentation of the retail industry and the impairments to its influence for the economy of
Australia. The commission is something that addresses to the other policies subjects which
can influence the structural change in the retail manufacturing (Balaji, and Roy, 2017)
It can be seen that the online retailing is the one that stays and that considers the
commission and its role in provided that consumer with great excellent, admission and
suitability. This requires the considerate of the role in online transaction. Along with the other
motorists of organizational change in the retail business, employment features and race
within the retail business (Knezevic, Renko, and Knego, 2011)
Moving ahead discussing about the retail Industry in Thailand. It is a country that maintains
the momentum which helps in driving the economic development and technology. Some of
the key factors for the retail industry are economic growth and growing youth. The industry
of retail in Thailand is expected to its region at a CAGR of 8.2% between the years 2013-
2018. It is also one of the lowest in Asia. The size of the Thailand overall is round $196
billion USD. The industry of retail in Thailand in determined by the throwaway income,
consumer self-confidence and etc (Fernie, J. and Sparks, L. eds., 2018).
The Retail market of Thailand is the one that is severely exaggerated by low GDP per capita.

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Retail industry of Australia and Thailand (size and profitability)
Australia Thailand
The retail sales of Australia grew by3.7% in
the 2018 September when compared with a
3.7% increase in the previous month. This is
a sector that is segmented on the basis of the
distribution channel, product category and
the dynamics of market.
 Australia is one of the most urbanised
societies present in the world. With
about 24 million people living in the
urban areas of Melbourne and etc.
along with those of the smaller cities
and towns within 100 miles of the
ocean
 Australia listed a considerably high
per capita GDP, value at about USD
50,000. Additionally, it chronicled the
additional highest average wealth per
adult (Varley, 2014)
 The retail sector of Australia also
witnessed a good and positive growth
in spite of seeing a low increase in
the wages and the dept.
Thailand is one of the largest countries with
economic stability in the countries of south
Asia. The capital city of Bangkok is a kind of
social hub for the Thailand which has a
blooming retail industry market.
 It is not just about the Thai residents,
it has also attracted many
multinational retail companies in
order to make the investments in the
country (Hamilton, and Chernev,
2013).
 Its retail market is developing
swiftly to meet the anxieties of the
customers’ varying lifestyles who are
greatly encouraged by the internet
today.
 The economy of Thailand is greatly
reliant on on its disseminates that
account for approximately two-thirds
of its GDP.
 According to sources, Thailand
observed a GDP of 11.4 trillion baht
($366 billion) in 2012. As a result,

RETAIL INDUSTRY OF THAILAND AND AUSTRALIA
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 Americans and Australians have a
strong relationship that spans the
antiquity of both nations.
the Thai economy was raised by
6.5% having an inflation rate of
3.02%
Challenges in the retail industry of Australia:
Labour: labour is one of the biggest threat and challenge for the retailers, the low
unemployment and competition from the economy make it very difficult for to staff or
employee both brick and motor locations. Nowadays a lot of companies are experimenting
with the technology in order to make the employment selection process easy. In the years to
come, self-checkout and mobile checkout will become more prevalent in the companies as
this helps in proving dual aids for example: it reduces the cashier hours and it provides
flexibility more liberal retailers will trial with facial recognition and other things (Pantano,
2014)

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Regulatory environment: The next challenge for the retailers of Australia is linked to
online stores. As the online sales are growing it is continuously outpacing the store
sales. One of the implications of this is the way fair court case that is felt by more and
more of Australian retailer organization. The problem for the retailer of Australia is
also that the trade and tariffs wars are driving up. If the retailers would be able to
succeed their supply chain and operations then only it will be able to minimise (Roy,
Padmavathy, Balaji, and Sivakumar, 2012) The influence of the tariffs on their
clienteles will be most fruitful New and inspired sourcing strategies will arise and
spirit will ultimately succeed over time. Meanwhile, augmented cost will
meaningfully disturb unit sales of pretentious products and will also ensure an indirect
impact on additional products as consumers are involuntary to sort decisions about
how to spend their limited funds (Hübner, and Kuhn, 2012)
Buying behaviors and brand: The buying behaviour will continue to evolve as the
generation Z becomes a large part for the base of consumers. The digital generation will
become a large part of the business as it will connect retailers to the new business platform.
YouTube, instagram and Snapchat accessed by mobile will be the platform of choice for the
coming generation and the customers would like to buy the stuff online which will lead to
introducing the new dimensions for Omni channels for many of the Australian retailers
(Dorman, 2013).
Challenges for Thailand retails
POLITICAL FACTORS: ANTI-TRUST ISSUES: The profitability and the revenue
of the Thailand retail industry is pretentious by the strategies of the government regulations
and the policies. The regulations of Thailand influence the economy, consumer buying ways

RETAIL INDUSTRY OF THAILAND AND AUSTRALIA
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and the global trade laws. The only item left for the retail business is to abide the rules and
regulations. The regulations of Thailand are such that it affects the products which are
introduced, exported and vended in the stores. Antitrust subjects and statistics openings are
producing the administration to aspect into how statistics is stowed, charity, and shared. This
disturbs the retail industry, which provides products online. In some belongings, this can be
helpful. But if the republic’s political parties are indecisive, it can easily turn into a issue
(Mukherji, 2012)
ECONOMIC FACTORS: NEARLY $30 TRILLION DOLLARS IN A COUPLE
MORE YEARS: If a country is has a strong economy then the it allows the customer to
buy the products they absence somewhat than impartial buying the product that they want.
Thailand has a good economy it cannot be called strong neither it can be called week. When
the economy is on rise then only the people spend on other things like food and clothes. The
retail industry is a strong industry and it cannot be hit harder. The retail industry was one
such industry which was capable to embrace up during the time of downturn, by the year
2020 the Thailand industry may see a good amount of global sales which will be around $30
trillion. The current economy worldwide is a nice spot for the retail industries to increase; the
clienteles nowadays have a good one-use income (Gregory, 2015)
Cultural aspects that impact the reatil industry of thailand and australia
The role of culture is an important thing in building the organization as it influences the
business practices in various ways like performs and methods is an acknowledged fact.
Studies have exposed recurrently that nationwide nationwide systems as well as separate
philosophies prominently disturb the business cultural scheme in numerous ways. For
instance, nationwide culture effects decision-making decision-making, leadership styles, and
human resource management performs likewise, nationwide cultures disturb decision-making

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purposes such as message, incentive, structural project, people’s expectations of work
strategy, and prize schemes. Moreover, structural regulates (e.g., human resource polices) are
partial by numerous nationwide organizations. (Anbanandam, Banwet, and Shankar, 2011).
Organizations can be the identical in such impartial sizes as bodily plant, layout, or product,
yet very dissimilar in the senses, which the nearby human cultures recite into them. Not only
machineries and marketplaces shape organizational culture, but by the cultural partialities of
employees and leaders, nationwide culture has a robust influence on people’s clarifications,
identifications, and valuation of those by whom they work. Cultural differences play a
significant part in the method people behaviour their exists and perform on the job. Culture is
the communicating combined of shared features that impact a human collection’s response to
its setting. National changes, if not unstated and valued well, can principal to disappointments
in occupational and public life (Piotrowicz, and Cuthbertson, 2014)
Australia Thailand
Power distance
 This is a factor that deals with the
facts that are or can be related to all
the individual societies and are not
equal. Australia has a low score on
this factor. It scores around 36. In the
organizations of Australia the
hierarchy is established for the
convenience and betterment of the
employees and the superiors. The
superiors are always accessible and
the managers as well rely on the team
Power distance
 Thailand scores around 64 on this
factor which is lower than the average
Asian countries. The society of
Thailand believes in accepting the
inequalities. They believe in a strict
chain of common and each and every
policy and protocol is observed.
Every rank has its own benefits and
employees shows loyalty and respects
their superiors in the return of
guidance and protection. This leads to

RETAIL INDUSTRY OF THAILAND AND AUSTRALIA
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and individuals, both managers and
employees expect to be consulted
and information is shared frequently.
At the similar time, communication
is informal, direct and participative.
 This simply shows that the culture in
Australia is very different from
Thailand as the employees in
Australia are considered as partners
and each thing is discussed, this is a
good thing that will also benefit the
retail industry of Australia as when
the employees feel they are part of
the company and everything is
discussed with them they feel highly
motivated and are also able to
perform well.
paternalistic management and that is
the reason the attitude of the
employees towards the managers are
more in a formal trait. The flow of
information is also controlled and is
flown in a particular manner.
 As compared to the culture of
Australia, Thailand companies have
strict rules that are important to be
followed by the employees. Also the
employees are not allowed to have all
the information regarding the
company. Which makes them feel
demotivated and thus there
performance is also affected which
further affects the retail industry
Individualism
 Australia scores around 90 on this
factor. It has a very individualist
culture. Which simply means that the
people of Australia always focus on
themselves and the their own
families
Individualism
 Thailand scores around 20 on this, it
is a highly collectivist country. There
is most of loyalty in a group and the
people love to work for each other.
The people in Thailand are not self-
centred. The society nurtures robust

RETAIL INDUSTRY OF THAILAND AND AUSTRALIA
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 Even when seen the world of business
in Australia the employees work for
themselves and they focus on the self-
goals rather than working as a team.
This is a thing that affects the retail
industry as the employees focus on
themselves more than the company
relations where everybody receipts
accountability for fellow members of
the group. Thai are not argumentative
and in there communication a “Yes”
may not mean an acceptance or
agreement. A crime tips to loss of
face and Thai are very subtle not to
feel chastened in front of their group.
 Through this it can be seen that the
employees also believe in teamwork
and this is what helps the retail
industry as the employees focus
together on the common goals of the
retail industry.
Masculinity
 Under this factor the score of
Australians are around 61and they are
considered “Masculine” in the
society. The main goal for the
Australians is to win and to achieve
the best. There only life goal is that
no matter what “the winner takes all”.
The Australian people are proud of
their successes and achievements in
life, and it offers a basis for hiring
Masculinity
 Thailand on the other hand has A low
score (Feminine) on the dimension
means that simply states that
Thailand values the society and care
for the people and their life around on
Thailand the people are not taught to
win instead they are taught to take
stand and win the situation but also
thinking about the society and the

RETAIL INDUSTRY OF THAILAND AND AUSTRALIA
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and promotion decisions in the
workplace. Conflicts are resolved at
the individual level and the goal is to
win.
 This simply states that the in a
workplace also the employees are
taught that they have to win in every
situation. In such the situations
employees follow various
malpractices in order to win which
effects the retail industry
other people
 This culture in Thailand is the best as
the employees work hard and do not
just focus on winning. They learn
from their mistakes and improve their
skills and this helps the employees to
perform in a better way, which
positively affects the retail industry.
REFRENCES
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collaboration: a case of apparel retail industry in India. International Journal of productivity
and Performance management, 60(2), pp.82-98.
Balaji, M.S. and Roy, S.K., 2017. Value co-creation with Internet of things technology in the
retail industry. Journal of Marketing Management, 33(1-2), pp.7-31.
Dorman, A.J., 2013. Omni-channel retail and the new age consumer: an empirical analysis of
direct-to-consumer channel interaction in the retail industry.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and
new challenges in the retail supply chain. Hongkong: Kogan page publishers.

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Gregory, J., 2015. The Internet of Things: revolutionizing the retail industry. Accenture
Strategy.
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management. Journal of Marketing, 77(6), pp.1-20.
Hübner, A.H. and Kuhn, H., 2012. Retail category management: State-of-the-art review of
quantitative research and software applications in assortment and shelf space
management. Omega, 40(2), pp.199-209.
Knezevic, B., Renko, S. and Knego, N., 2011. Changes in Retail Industry in the
EU. Business, Management and Education, 9(1), pp.34-49.
Mukherji, S., 2012. A framework for managing customer knowledge in retail industry. IIMB
Management Review, 24(2), pp.95-103.
Pantano, E., 2014. Innovation drivers in retail industry. International Journal of Information
Management, 34(3), pp.344-350.
Piotrowicz, W. and Cuthbertson, R., 2014. Introduction to the special issue information
technology in retail: Toward omnichannel retailing. International Journal of Electronic
Commerce, 18(4), pp.5-16.
Roy, S.K., Padmavathy, C., Balaji, M.S. and Sivakumar, V.J., 2012. Measuring effectiveness
of customer relationship management in Indian retail banks. International Journal of Bank
Marketing.
Varley, R., 2014. Retail product management: buying and merchandising. Singapore
Routledge.