Half of Aussie consumers will spend more during Black Friday Cyber Monday sales despite concerns over the cost of living, with quality and value set to rule spending decisions, new research from Shopify has revealed.

Ahead of the 2022 Black Friday Cyber Monday (BFCM) weekend — an event that last year saw more than 47 million shoppers buying from brands powered by Shopify in 2021 — Shopify surveyed 4,000 consumers and 500 businesses across Australia and New Zealand (ANZ) to learn how cost-of-living spikes will influence spending habits and retailers over the holidays. 

Despite the gloomy economic outlook, retailers are optimistic about consumer spending, with 72% saying they are planning a “big Black Friday Cyber Monday (BFCM)” to kick start holiday season shopping, with 78% of retailers saying there will be better deals available to customers compared to last year’s BFCM.

“This year, we can clearly see a shift towards more considered spending, as many Aussies prioritise value for money — in terms of quality and cost savings — as inflation and interest rates bite,” said Shaun Broughton, APAC Managing Director at Shopify. “Despite gloomy economic conditions, consumers are setting aside extra money for holiday spending, which presents an opportunity for retailers offering quality products and smart incentives to accelerate growth.”

“With the cost of living continuing to rise, we’ve noticed a shift in the way our customers are shopping,” said Zhoe Low, General Manager at Australian luggage brand, July. “We quickly realised that our customers are planning trips in advance and shopping earlier than usual, most likely to take advantage of peak sales times. To accommodate and react to this trend in pre-holiday prep, we are distributing gifting messaging sooner as well as being much clearer with our shipping timeframes.”

The findings reveal:

As bills bite, consumers drop disposable spending but are saving more to maximise Black Friday shopping

• Over a third (36%) of Australian consumers are cautious about spending in the current economic environment, and more than three quarters (75%) say they have reduced their disposable spending in the past couple of months.
• Despite this, Black Friday Cyber Monday and holiday season sales are a bright spot for consumers, with half (52%) putting more money aside for the holiday season than they have done previously this year, and over a third (40%) intending to spend more this Black Friday / Cyber Monday before the real pinch of price hikes kick in.
• Retailers are also optimistic, with (72%) saying they are planning a “big Black Friday Cyber Monday (BFCM)” to kick start holiday season shopping, and 78% saying there will be better deals available to customers compared to last year’s BFCM.

Shoppers are looking more carefully for value that lasts, but open to monthly treats to spark joy

• Quality and value rule consumer spending, with two-thirds (69%) of consumers looking to spend money on higher quality products that last to make their money stretch further and 64% more likely to shop during BFCM to get more bang for their buck.
• And, two thirds (68%) of consumers say they’re likely to treat themselves about once a month (68%), and two-thirds (69%) are looking to spend money on smaller purchases that bring them joy amidst the uncertainty.

Considered bargain hunting a foundational shopping behaviour 

• Price rules right now, and as a result, loyalty is up for grabs. Australian shoppers ranked higher than the global average (74%, versus 65% globally) saying that cost savings would convince them to switch to a rival brand’s product.
• And, almost all (84%) are making more considered purchases by comparing prices to see where the best discounts are and more than a quarter (26%) are considering whether they really need something before committing to buy. 
• The good news is that 78% of businesses in the region think better deals will be available to customers compared to last year’s BFCM season. Cost conscious shoppers will be able to take advantage.

About the study Online survey conducted by Sapio Research, on behalf of Shopify, among 24,009 consumers and 9,012 businesses (under 1,000 employees) across the UK, France, Germany, Spain, Italy, Netherlands, Sweden, Australia, New Zealand, Japan, US and Canada. The survey took place between September and October 2022

Melanie Hoptman, COO of APAC at LiveRamp – which helps power advertising for the likes of Woolies, Microsoft and JD.com – says with consumers being pickier, retailers have to be smarter than ever with their advertising strategies to boost revenue this holiday season. 

To help, she has put together 5 tips on how retailers can catch the attention of shoppers and boost revenue this holiday season. 

Melanie shares her predictions on this holiday season’s spending trends: 

• E-commerce is expected become more popular as consumers look for online deals to be savvy with their money 
• Consumers will look for personalisation when they shop, rather than whatever is simple and convenient as they spend smarter

• Businesses will put a greater focus on data to guide their advertising strategies, to ensure each dollar spent reaches the right audience 

• Retailers will leverage their media networks to offset the reduction in topline sales caused by inflation

• Retail media networks will also play an important role in merchandising, helping retailers to avoid excess inventory post-holiday season 

5 ways retailers can boost revenue

1. Timing is key 

As consumers choose their purchases more carefully this year, it’s more important than ever to develop a strong media strategy. Using clever data to ensure you reach the right audience at the right time will enable you to reach a broader audience and boost sales. 

2. Collaborate for shared wins

As consumers are stricter with their spending, retailers and their partners need ways to bolster the bottom line. Data collaboration, in the form of retail media networks or data clean rooms, is a highly effective way for retailers and suppliers to gather insights on their target audience, improve measurement and boost revenue. RMNs provide access to new data streams, so whether consumers click, purchase, or anything in between, retailers and brands can better understand their customers and deliver more personalised experiences that resonate. 

3. Deal or no deal 

As people watch their spending, we expect shoppers to look for more deals and discounts this year. Retail media provides a perfect opportunity for companies to test out new offerings and learn about consumer habits this holiday season, which will deliver higher ROI.

4. Show your customer you know them

Targeted advertising that feels personal to each and every customer will be key to get people to notice your brand this year. By using data to better understand your audiences and the channels they prefer, you can sharpen your personalisation strategies and optimize campaigns on the fly. Privacy will be a crucial element to ensure personalisation aligns with consumer trust.

5. Be flexible 

Be ready to pivot your campaign messaging. Make sure to gather and analyse data during your campaign and, if the message is not resonating, alter your messaging to make sure it delivers. For example, through RMNs, retailers and their partners can assess real-time data garnered and pivot campaign messaging. 

This year it’s all about being agile and flexible to deliver the best outcomes.  

*roymorgan.com/findings/pre-christmas-sales-forecast-to-reach-63-9-billion-up-3-on-last-year

The impact of the pandemic, the uncertain economic environment, and the burnout experienced by nearly two-thirds (60%) of Australian knowledge workers in the last year, have irrevocably changed what employees want from their leaders, according to new Slack research.  

The study, Leadership and the war for talent, based on a survey of over 1,000 Australian knowledge workers, found that stability (51%) and having a good manager (29%) are now more important than salary (28%) when it comes to choosing the company they work for. 

Survey respondents also identified teamwork and collaboration (47%), flexible work (38%), employee wellbeing (37%), and transparent and trustworthy leadership (36%) as the top factors driving organisational success – all valued more highly than financial achievement (28%). When it comes to flexible working, over half of respondents (58%) said they want to be trusted to do their job regardless of location or the hours worked.  

With nearly half of Aussie knowledge workers surveyed considering moving jobs in the next year (45%), and 12% admitting to ‘quiet quitting’ – fulfilling the requirements of their job but not going above and beyond – it’s critical that leaders act to ensure their own leadership style isn’t having a negative impact on the engagement and motivation of their employees. This means focusing more on soft or ‘power’ skills – human-centred, interpersonal skills related to areas such as collaboration, social and emotional intelligence; analysing the time employees are spending on unproductive tasks; exploring ways to elevate productivity with collaborative technology; and figuring out how to meet the varying expectations of employees from different generations, who prefer to work in different ways.

Nicole Woodley, Country Manager, Australia and New Zealand, Slack said, “The rhythm of work already had an irregular heartbeat before the pandemic – we just weren’t aware of how much time we were, and still are, spending on non-productive tasks. We are continuing to go through one of the biggest workplace experiments in the last 100 years as we move from offices to hybrid work, and see factors like trust, wellbeing and soft skills take on as much meaning as financial success and salary. The rewards are clear – greater productivity, a reduction in burn out and better staff retention. We are not at our final destination yet, and what this survey revels are key areas where leaders can get on the front foot.”

Poor leadership leads to burnout, quiet quitting 

The research draws a clear link between poor leadership and a dip in employee morale and productivity. Only half of the respondents say they feel ‘inspired’ by their leaders (53%), and the same number deem leaders as ‘stuck in their ways’. Worryingly, just over a third (39%) do not feel their leader is concerned for their psychological safety.

‘Quiet quitting’ is strongly linked to poor leadership as well. Those with poor managers are far more likely to feel burnt out (75% as compared to 54% for good leaders), and ‘quiet quit’ (27% compared to 6%).

According to the study, employees with poor or average leaders feel they have much less of a voice than if they had good leaders (80% as compared to 23%). Similarly, these employees also feel they have less autonomy (48% vs. 74% amongst those with good leaders), less of a good culture (23% vs. 78%) and that there is more of a disconnect between leaders and employees (79% vs. 46%).

Collaboration technology as potential ‘power tools’ for boosting leadership

The Slack study showed a strong correlation between those respondents that hold their leaders in high regard and those whose leaders embrace the use of collaborative technology. Interestingly, these respondents were also identified as being highly connected to their organisations. Contrastingly, those respondents who deemed their leaders as technology laggards in this area are also more likely to quit their job.

Nearly two-thirds of Aussie knowledge workers surveyed saw collaboration tools as being of utmost importance to their organisation (65%). The key benefits that respondents attributed to collaborative technology included being more productive (65%), getting information to the right people quickly (41%), improving communication with leadership (31%), and speeding up the implementation of projects (31%).

When it comes to implementing collaboration tools, two-fifths gave low scores to the quality of the training received (42%). In addition, only a third of leaders were seen to lead by example when it comes to adoption (30%), with 13% of leaders using collaborative technology less than others, or never or hardly ever using the new tools themselves. Where this happens, 31% of respondents say it makes their job more challenging. 

The real reason Aussie knowledge workers don’t have enough hours in the day

Looking at the amount of non-productive time that Aussie knowledge workers say they are spending on routine and often mundane tasks, the potential value of collaboration tools on organisational success becomes more pronounced. 

For example, nearly a third feel it takes them too long to find information (30%), with over a quarter of this group estimating they spend an hour or more a day on this task. A quarter shared that they were found to be spending too much time on internal processes (26%), with over half of this group saying they are spending between 30 minutes and an hour a day on these.  

Mind the generation gap 

The survey shows significant generational differences in employees in Australia in terms of what they expect from their leaders, making it clear that people management is not a one-size-fits-all.  

• Gen Z are aspirational, being the most likely to seek workplace flexibility (54%), as well as transparent and trustworthy, and empathetic leaders (43% and 34% respectively). While they are more likely to be inspired by leadership (63%), they are the most likely to be burnt out (68%) and to churn (53%).
• Millennials are highly focused on wellbeing (39%). While they are the least likely to want recognition and celebration of success, they are the most likely to feel a disconnect between leaders and employees (57%), and have the highest levels of job dissatisfaction (19%). This group leans in the most to the use of collaboration tools (69%).
• Gen X are also greatly concerned with wellbeing (39%), and the most likely to want a great employee experience (39%). They are also the most likely to state that they want recognition (27%). However, they are the least likely to say leaders communicate well (57%), to find their leaders inspirational (45%), and to see their leaders as caring for their psychological safety (56%). They are the least interested in innovation (13%) and least likely to say they enjoy new collaboration tools being introduced (49%).
• Baby Boomers are middle of the road on most things, but are particularly favourable towards having clear KPIs (22%) and accountability frameworks (19%), and to have a clear level of autonomy in their work.

Cooling down the burnout

The research also showed some clear differentiation between what Aussie knowledge workers in different industries are feeling and looking for: 

• IT & Tech: Respondents from the Tech sector gave the highest scores to their managers for being competent (73%) and communicating well (75%). Although not inspirational (51%), it could be said that IT leaders are seen to lead by example. Perhaps as a result, IT workers are one of the groups least likely to say they felt burnt out (48%).
• Financial Services: Notably much less focused on teamwork and collaboration (38%) and wellbeing (31%) as being the keys to success, respondents from the banking sector were also the most likely to want more meaning in their job (71%). They also reported some of the highest rates of burnout (64%) and quiet quitting (11%).  
• Retail: Retail workers reported the lowest levels of confidence in their leaders and are one of the most dissatisfied with their jobs, most of which are likely to be on-site. They are also most likely to participate in quiet quitting (15%). They want greater focus on wellbeing (39%), empathetic leaders (27%) and a great employee experience (30%).
• Government: Far fewer respondents see their leaders as competent (31%) or concerned for workers’ psychological safety (36%). This sector by far had the highest number of workers very likely to churn (46%) and quiet quit (18%), although the sense of burn out was lower than other industries (47%).  

A new perspective on the office

While employees are increasingly working from home, the office environment is still valued, the Slack study found. When asked what workers felt the office was best suited for, Aussie knowledge workers cited social connection (40%), team building (39%), welcomes and farewells (34%), collaboration and brainstorming (30%), and one-on-one meetings (30%). Activities like progress updates (16%), planning sessions (16%), and company town halls (12%) were perceived as less critical to be held in an office. This suggests that a lot of time can be potentially saved by conducting these activities virtually using collaborative technology.     

Research methodology Slack’s new research, conducted by Honeycomb Strategy, was based on responses from 1,000+ Australian knowledge workers within organisations of 100+ employees. You can view the full report here: Leadership and the war for talent.

As Australians continue to spend more time online to stay in touch, work and consume entertainment, scammers continue to find new and novel ways to take advantage of people. Now more than ever, we all need to remain vigilant. Australians should make sure they are well equipped to spot online scams and protect themselves online. 

Meta has invested heavily to protect the safety of users on our services. But we know scammers are very innovative and we all need to play our part to spot and report scams. As part of Scams Awareness Week (7 – 11 November), we’re launching an education campaign across Facebook and Instagram to help Australians spot some of the most common scams online that we’re seeing across Meta’s apps. It builds on the very successful campaign we ran in July 2022, which reached more than 8 million Australians with tips on how Australians can protect themselves from scams. 

As part of this campaign, Meta created short educational videos that explain some of the common scams Australians should be alert to when using Facebook, Instagram, WhatsApp and Messenger, and how to protect themselves online. 

These include: 

• Romance scams
• Online shopping and Marketplace scams
• Phishing scams on Meta
• Family members in need scams
• Investment scams
• Impersonation scams

The campaign also includes simple tips we can all follow to protect ourselves online: 

• Set up two-factor authentication – it’s simple to do and adds a second layer of protection to your account, by sharing a notification whenever there’s an attempt to access your account. To find out more about setting up two-factor authentication (or 2FA) on Facebook, click here. For Instagram, click here.
• Protect your personal information at all times – never share your personal information, such as your ID documents, payment login details or passwords. Don’t transfer money to someone you don’t know.  
• Look out for suspicious behaviour, links, emails or messages – if in doubt, don’t click or respond, and take some time to research. Take action and report your suspicions via our Facebook or Instagram help centres or report it to police. 

Scamming is a societal issue that goes beyond any individual company or app. Scammers are constantly evolving their methods to contact people – over the phone, text, and online – and these methods are becoming increasingly sophisticated. All of us – companies, governments, law enforcement and citizens have a responsibility to fight this shared challenge and protect ourselves online. Meta continues to invest in new technologies to detect and remove these scams, and provide resources for our community to spot and report scams.  

Josh Machin, Head of Policy – Meta Australia, says: The whole industry needs to collaborate in this area, and that’s why we’re proud to partner with a range of industry stakeholders, including the Australian Competition and Consumer Commission (ACCC), IDCARE and Australian Law Enforcement and Puppy Scam Awareness Australia to share important measures to combat scams and ensure a safe and secure environment for Australians online.

Together, through education, technological investments and reporting tools we can all play a role in helping to reduce scams online.

The combination of a post-pandemic world and ongoing extreme weather events have made for challenging conditions for small businesses but the quickly approaching summer period is a time for small businesses to take advantage of the relaxed holiday vibes and capitalize on the holiday period. Vista has compiled a list of business and marketing success tips to help Aussie small businesses have the best summer of business.

Small Business Summer Success Tips

1. Plan and prep for the summer holidays

Given a lot of people engage with business around the holiday period, think of ways that your business can capitalize on this summer activity, for example holiday picnic baskets if you’re a food retailer or sales on summer clothing lines for clothing retailers.

2. Host an event for your customers

With the return of warm weather and the festive spirit in the air, people are ready to get out and engage with their community. Think of hosting a summer event relevant to your business that will allow you to market your business, connect with customers and drive sales.

3. Offer seasonal incentives

To help drive customer engagement, offer incentives such as a freebie or discount and get people excited to do business with you over the summer months.

4. Connect with the small business community

Make the most of the small business community and partner with other businesses to offer additional value to your customers and attract new customers.

5. Spruce up your space

Whether you have a brick-and-mortar store or a purely online business, get in the summer mood with a refresh. This could be through décor, offerings or branding.

6. Target seasonal visitors

If you live in an area that attracts tourists in the warm-weather months, you have the opportunity to connect with an entirely new customer base during the summer season – so, make a plan to target them.

7. Take advantage of outdoor events

Warm temperatures and hours of sunshine create the perfect backdrop for outdoor summer events. Research outdoor events happening in your area and find out ways to get involved.

Global audio and video brand EPOS has launched findings examining the impact poor audio quality is having on the productivity levels of remote workers. The research found that poor audio quality causes our brains to work harder to process information. EPOS also found that the brain undergoes significant strain when struggling to process digital audio in comparison to sounds in a physical environment.

Following the onset of COVID-19, there has been an influx of research on the long-lasting cognitive issues related to the global health crisis as well as how lockdowns and other societal shifts have affected mental health. However, there has been little research on the impact of communicating primarily through digital solutions. Sound significantly impacts cognitive function because the ear is just a vehicle to the brain that perceives and translates a series of electronic nerve signals. With much of the global workforce continuing to work remotely, background noises remain an impediment to productivity and potentially a risk to health as it relates to levels of stress. Workforces today are largely unaware of how background noises affect them, and it is only by addressing the issue that we can begin to unlock new levels of well-being and productivity.

The psychoacoustic research was conducted by EPOS in the Centre for Applied Audiology Research (CAAR)^[1], Oticon, Denmark, with a focus on pupillometry tracking, speech recognition performance and subjective ratings for pre- and post-load tasks for each noise condition. The users performed the listening tasks with and without EPOS passive damping. The researchers concluded that the passive noise reduction performance of EPOS headsets leads to a reduction in effort listening, better memory recall and higher levels of word recognition, with subjects’ memory recall improving by 10%.^[2]

Listeners enduring noisy backgrounds can struggle to interpret and understand the entirety of what’s being discussed. While that raises immediate concerns for the absorption and retention of information, the longer-term issue is clear. Poor audio causes our brains to work harder to interpret information and experience 35% more effort listening[3]. The brain can become much slower to respond to sound as it finds it trickier to switch between stimuli. For instance, when on a conference call that is marred by audio issues including background noise and interference, the brain works harder to focus on what the most important source of sound is.

This, the researchers contend, can lead to cognitive overload and brain fatigue. Sound affects us psychologically, cognitively, and behaviourally, even though we are not aware of it. By testing EPOS’ technologies and solutions, and examining cognitive effort and memory recall, it is possible to develop solutions to mitigate the effects of unwanted background noise on the brain. For example, EPOS can test and prove that damping specific frequencies of disturbing noises really does result in lower listening fatigue over an extended virtual meeting.

Built on world-leading psychoacoustic research through the Demant Group, EPOS has developed unique algorithms and acoustic technologies to replicate the ideal and most natural conditions for a user’s brain to interpret sounds. These technologies fall under the EPOS BrainAdapt™ banner. Products built on EPOS BrainAdapt™ technologies, such as the ADAPT 660 and ADAPT 660 AMC headsets were shown to enhance performance through improved recall and reduced cognitive load.

Torben Christiansen, Director of Technology, EPOS: “Businesses invested hugely in technologies to support their workforces during lockdowns. That was a necessary fix to an immediate threat to business continuity. Now, we’re starting to see the longer-term impacts of remote work on our employees’ productivity and wellbeing. Poorer concentration and productivity have an immediate impact on business output, but the more insidious and cumulative effect will be that of increased fatigue and dissatisfaction amongst workers. This, in turn, can lead to burnout and employee churn. Employers need to face down these new challenges with the same rigour they did in 2020, and invest in new solutions to support their employees’ wellbeing, satisfaction, and productivity.”

Uniden has enhanced its outdoor security range with a new smart security device, the Uniden App Cam PANO with 4K dual lens spotlight, offering a Wi-Fi-enabled, powerful new spotlight. This latest smart device is designed to be the ultimate deterrent for crime outdoors.

Users can capture clear video footage through the ultra-high-definition (4K) lens and high-quality features of the device, making it possible to view and record with a wide image range in greater detail and zoom in to view objects easily, providing peace of mind at all times of the day or night.

With a 170-degree-wide field of view, the App Cam PANO uses dual lens hardware that joins the two videos together as one picture. Essentially, the dual lens hardware enables you to capture and view more than a tradition security camera. The weatherproof App Cam PANO, built to withstand all weather conditions including the harsh Australian sun, includes an innovative 4K dual lens and is designed for Australian homes and outdoor conditions. With powerful infrared night vision that automatically turns on as night falls, it lets users see everything, even in the dark.

The inclusion of a passive infrared sensor (PIR sensor) spotlight lets users see the appearance of anyone approaching the property more clearly, while also acting as an effective deterrent to unwanted visitors. Combined with a very strong built-in spotlight, this adds colour to the night vision footage up to 10 metres away to ensure a high-quality image.

The App Cam PANO features artificial intelligence (AI), which can distinguish between a person, vehicle or pet. It’s accurate detection technology then alerts you through instant-push notifications, while at the same time reducing the number of false alarms.

Users can easily track App Cam PANO vision from any smartphone device for remote live viewing in 4K quality using the Uniden SOLO app globally. This also facilitates two-way communication or voice alerts that can help when goods or parcels are delivered to the front door. Privacy masking can black out the areas a user does not want recorded and prioritise where surveillance needs to be focused.

Thanks to the wire-free over Wi-Fi capability, both homeowners and renters can choose one or more of these cameras to monitor more of their home, from the front door to the garage, in one easy DIY-installed solution without the need for ongoing fees or subscription costs.

A wire-free version (App Cam SOLO PANO) will be released in early 2023 to join the App Cam PANO 4K range.

Uniden App Cam PANO Key features:

• colour night vision
• powerful spotlight and camera in one
• 170 degree viewing angle – dual lens
• 4K (8MP) resolution
• micro-SD-card
• weatherproof design (IP65)
• artificial intelligence (AI)-enabled alerts
• customised voice-recorded alerts
• dual-band Wi-Fi (2.4GHz  5GHz)
• siren alert trigger
• motion detection record
• privacy masking.

Uniden App Cam PANO RRP: $399.95

Based on an analysis of its own delivery data, CouriersPlease has revealed the 10 top suburbs for Christmas shopping across Australia – and the top two suburbs in each major State – that will shop most for Christmas gifts this year.

CEO Richard Thame says the company has seen ever-increasing parcel delivery volumes each year in the lead up to Christmas – October to mid-December – also known as ‘peak period.’ 

Richard says: “In 2021, we delivered 28 million parcels – including nearly 5 million over our peak period.^[1] Our volumes are therefore a reliable barometer of Australian online shopping habits.

“While inflation and rising interest rates will cause many Australians to re-evaluate their spending this Christmas – our recent research found 54 per cent of online shoppers plan to spend less this year – we anticipate purchase levels will still be healthy. We have prepared for a boost in parcel volumes around the Black Friday and Cyber Monday period, which 52 per cent of consumers use to buy Christmas gifts, our own research has found.”

CouriersPlease forecasts the 10 suburbs – ranked – that will be responsible for the largest Christmas parcel volumes 

Based on 2021 parcel delivery volumes, Richard forecasts this year’s top 10 suburbs Christmas shopping. 

1. Melbourne (3000)
2. Sydney (postcode 2000)
3. Adelaide (5000)
4. Pakenham (3810)
5. Point Cook (3030)
6. Berwick (3806)
7. Sunbury (3429)
8. Port Melbourne (3207)
9. Richmond (3121)
10. Preston (3072)

Richard says: “We forecast earlier this year that Melbourne’s suburbs would continue topping the list for areas shopping online the most and the above list echoes this prediction. Eight out of the 10 suburbs that will see increased volumes this Christmas are in Victoria, suggesting residents have formed permanent online shopping behaviours after significant periods of lockdowns and restrictions.”

CouriersPlease forecasts the two suburbs – ranked – that will be responsible for the largest Christmas parcel volumes in each State

CouriersPlease also analysed its parcel delivery data across each major State and has revealed the two top suburbs – ranked – where Australians will shop for Christmas the most this year.

Richard says: “While Sydney and Melbourne top the list in NSW and Victoria, the rankings also highlight promising growth areas that have emerged in recent years.”

Toowoomba is one such region, experiencing a 7.7 per cent population growth since the 2016 Census.^[2] Property values have also increased more than 20 per cent, with houses selling at a faster rate than any other regional area.^[3] Sydney’s Hills Shire, with suburbs such as Castle Hill, is considered one of Australia’s rapidly growing urban regions, forecast to more than double its population by 2036.^[4] 

“These areas are continuing to attract more residents, particularly with more Australians choosing to move to outer suburbs over urban suburbs in recent years.”

NSW

1. Sydney (2000)
2. Castle Hill (2154)

QLD

1. Toowoomba (4350)
2. Salisbury (4107)

VIC

1. Melbourne (3000)
2. Pakenham (3810)

SA

1. Adelaide (5000)
2. Mount Barker (5251)

WA

1. Perth (6000)
2. Canning Vale (6155)

The fluctuating relative strength of the Aussie dollar is yet another reflection of major economies feeling the strain of cost of living pressures, rising interest rates and inflation. 

With the Australian dollar withdrawing from a six-week high in late July, now hovering below the US$0.65 mark and the RBA hiking interest rates to 2.85%, each piece of global and Australian economic data is being heavily scrutinised to see how currency markets will respond. 

Currency market volatility impacts the cost of doing business globally. 

More than ever, SMEs are taking action to minimise the negative impacts of rising interest rates and currency fluctuations on their bottom line.

Explaining the relationship between interest rates, inflation and foreign exchange (FX)

Let’s first break down how interest rates, inflation and FX are interrelated to give you a working knowledge of how this could impact your business’s cash flow.

To start, central banks can impact spending and the cost of goods and services by increasing and decreasing interest rates. Consecutive rate rises, as Australia has been experiencing, increase the cost of borrowing for businesses which is then passed on to consumers. This tends to make it more expensive for businesses to invest and make consumers less confident about discretionary spending, both of which add pressure for SMEs trading globally.

As interest rates go up, investors tend to buy holdings in the currency where the interest yield is higher, and the increase in demand sees the currency gain in value. Conversely, as investors sell off lower-yielding currencies, the drop in demand decreases currency value.

In essence, a weaker Australian dollar means local businesses, such as Australian-based automotive and clothing retailers, will pay more for international products and services.

However, Australian companies that earn revenue in overseas currencies while incurring expenses in Australian dollars, are better placed to benefit from local products and services becoming more globally competitive.

Managing risk in inflation-driven volatile currency markets

Predicting currency rates is nearly impossible, but SMEs can use the below tools to help manage FX risk when moving money globally:

Limit Order: this enables you to nominate a target rate for an amount of currency in the hope that the rate will be reached within a specific time frame. If the rate is reached, the currency is purchased for you automatically.

Forward Contracts: this provides the ability to secure an exchange rate based on today’s rate for a future-dated transfer up to twelve months in advance.

Both tools can help offset currency exposure risk, create potential cash flow buffers, and offer more currency certainty. In turn, this can facilitate better pricing conditions so businesses can avoid passing on costs to consumers.

It’s also possible to protect against currency swings through natural hedging, where overseas earnings and costs are managed in the same currency. This removes the barrier of having to convert revenue at exchange rates you can’t control. Some FX payment providers offer multi-currency accounts to create this natural hedge; the OFX Global Currency Account for example, enables businesses to open up to nine virtual currency accounts to make and receive payments.

Every small business trading internationally should have a currency risk management plan. If you’re uncertain about the best solution for your business, get in touch with an FX specialist; their knowledge of global market movements and FX cost planning could help your business.

Other Australian businesses’ reactions to inflation

For a number of years, the influence of inflation has been largely absent from the macro-economic picture, but no longer; the full force of inflationary impacts are certainly being felt.

Inflationary pressure on interest rates and currency exchange rates could mean SMEs with their eyes on expanding overseas become more cautious. 

However, it’s encouraging to observe organisations taking a proactive approach to currency risk planning. OFX data for September showed a month-on-month increase in both Limit Orders and Forward Contracts from its Corporate books as businesses sought more cash flow certainty and control.

This increased activity could be attributed to exporters who favour a weaker AUD seeking to lock in their position, or Australian organisations with offshore ties who may be concerned the AUD will slide lower wanting to protect their margins. In both cases, currency risk tools can give businesses greater certainty in a volatile currency environment.

Get ahead, stay ahead

With the looming threat of a global recession, interest rate hikes will continue to be a driving economic force that currency markets could react to.

For SMEs to thrive in the tough economic conditions expected ahead, understanding the role of FX in the economic puzzle and adjusting business finances accordingly could mean the difference between competitive growth and leaking hard-earned profit. I encourage all businesses to arm themselves with the necessary FX tools and resources to prepare for ongoing currency volatility.

Content provided by Michael Judge, Head of Australia and New Zealand, OFX

Synology has announced the launch of WRX560 as it expands its line of critically-acclaimed routers with a powerful Wi-Fi 6 router designed to provide fast, secure, and safe internet connectivity to busy households. Running the intuitive and feature-rich Synology Router Manager (SRM) operating system and boasting capable hardware, WRX560 is equipped to tackle any small office networking challenge.

“We are excited to add WRX560 to our lineup,” said Mike Chen, Product Manager for Synology Routers. “Sitting below our flagship RT6600ax, the WRX560 still packs powerful performance and advanced network functionality but for a broader audience.”

Performance-driven design

WRX560 packs powerful internals under the hood to ensure optimal performance for busy small offices and networking enthusiasts alike. Powered by Wi-Fi 6 technology, WRX560 offers fast Wi-Fi speeds with a combined throughput of up to 3,000 Mbps¹ to provide buffer-free streaming and fast downloads. Its quad-core 1.4 GHz processor and 512 MB of RAM allow it to handle up to 150 connected devices without missing a beat.

As a step-up from most consumer routers, WRX560 features a configurable 2.5GbE WAN/LAN port to support high-performance devices or superfast internet plans. Additionally, compatibility with the newly licensed 5.9 GHz spectrum provides access to an interference-free band for higher potential connection speeds² or dedicated wireless backhaul.

Seamless connectivity for the small office

WRX560 includes features that enhance wireless connections for faster and more stable connectivity. This router can be incorporated into a mesh configuration with other Synology routers for consistent, high-speed whole-home coverage under a single Wi-Fi name.³ Users with existing Synology routers can get the most out of their device by using it as an additional Wi-Fi point.

Built to provide family-friendly experiences for the home office

WRX560 includes comprehensive parental controls and internet filtering capabilities through the Safe Access package to make the internet a safer place.

Limiting screen time for kids

Parents can set internet use quotas or restrict internet access to certain hours for each device owned by children, including laptops, smartphones, tablets, and game consoles.

Web filtering

Prevent children from accessing adult, violent, gaming, and social networking websites and filter out explicit search results. Users can apply filters flexibly, for example, restricting social media during homework hours.

Track usage

Safe Access provides insight into kids’ activities online, such as the daily amount of time spent on the web or whether they have attempted to visit inappropriate websites.

Advanced networking features in Synology Router Manager

Known for its popularity among router enthusiasts, SRM includes a host of advanced networking capabilities, including VPN server hosting, fine-grained control of bandwidth usage of devices on the network, and VLAN network segmentation.

VPN Plus

Ideal for remote workers and office use, VPN Plus provides the ability to quickly establish secure connections to internal networks behind the router, bridge multiple locations together with secure IPsec tunnels for resource sharing across different networks, and access to desktop software from anywhere with remote desktop functionality.

Traffic management

WRX560’s built-in traffic management tools provide users with precise control and oversight over their network traffic. With the ability to view detailed application and device traffic information and apply traffic shaping and quality of service policies, users can optimize their network based on their specific needs.

VLAN network segmentation

The VLAN network segmentation feature lets users create VLANs and define custom firewall rules, quality of service policies, and access policies for each VLAN. For home users, VLAN network segmentation is most often used to isolate vulnerable IoT devices from the main network to keep PCs and NAS secure from potential intrusions.

On-the-go management

The DS router mobile app offers a wide range of features, including router setup, traffic monitoring, parental controls, guest network creation, and network management.