Striking the retail jackpot: are miners really the best people to target?June 7, 2011
Here in WA, there is a common belief that mining can lead to high incomes and affluent lifestyles. Well there’s no denying that those in the sector do often earn a good wage, but the problem lies in the belief that this money will reach the retail sector. Recent research shows that miners may not be as profitable as what you may believe. So before you put all your eggs in one basket and run out to the mines, there are some facts you should consider about the mining sector….
One of the biggest myths concerns the size of the mining sector. It is not, as many believe, our most profitable sector. Rather, construction adds much more value to our economy than mining. There are also far less people employed in the industry than many believe. In fact only 1.5% of the Australian population works in this sector, with the largest proportion, here in WA, employing around 80 thousand people. So retailers targeting this segment miss out on the other 1.4 million people in WA.
Another issue is the purchasing decisions. Research has shown that women are responsible for the majority of household purchases, yet only 8% of all miners are female… This means, unless you’re selling utes or backyard sheds you’re missing the most profitable segment of the market!
A third consideration is that many miners choose not to spend their hard earned cash in shops, but prefer to go on overseas holidays or buy property. Some also choose to work in mining part-time to supplement their usual lifestyle. This again narrows the target market for retailers.
So before you convert your store to accommodate this group, you may want to reconsider your target market. It may be worth conducting some market research to find out which particular market segment will prove most profitable to your business.
If you would like any further information click here to contact Mark FernandezThis entry was posted in Business Strategy. Bookmark the permalink. ← “The Million Dollar Question” Right Advice for Great Opportunities →