Dealing with the COVID-19 pandemic has taught many lessons over the course of 2020. One, common to us all, is the use of digital communications for personal, business or industry interactions. Never before has society been so reliant on digital platforms to participate in social, workplace and personal activities. E-commerce has transformed the way we transact business and shop.
Online shopping has seen unprecedented growth. An Australia Post comprehensive assessment of online shopping indicates that so far in 2020 there are more people shopping online than ever before, with 5.2 million Australians doing so in April – a 31 per cent rise when compared to the average in 2019.
In keeping with this increase, there has been a rapid growth in online purchases. In 2019, year-on-year growth was 17.2 per cent. In contrast, for the year to 30 April 2020, it has shifted significantly with online purchases up 41 per cent year on year. The Australian Bureau of Statistics estimates online retail turnover for April 2020 shows a substantial increase. For example, in January, total online retail trade was down -25.8 per cent ($1.712M); February: -2.1 per cent ($1.675M); March +23.5 per cent ($2.069M); April +26.4 per cent ($2.615M).
Automotive businesses employed innovative ways to attract business. This was particularly clear during the highest levels of COVID-19 restrictions when motor vehicle sales fell dramatically and after a long period of slower decline. For April 2020, the market declined 48.5 per cent, and in May a decrease of 35.3 per cent was recorded. Additionally, The Australian Bureau of Statistics April 2020 Lending Indicators for fixed term personal finance indicated a 37.8 per cent decline in the value of loan commitments for road vehicles.
The innovative thinking included that from Carsales, for example, which introduced a new ‘buy from home’ feature to make the car buying process easier. The new feature connects customers with dealers from the comfort of their own home and enables customers to organise a vehicle to be delivered to their house for a demonstration and fully-sanitised test drive while maintaining minimum contact with other people. The customer can obtain a quote, initiate the buying process by submitting a finance application, trade-in valuation and process a deposit. Finally, the purchased vehicle can be delivered to their house, making the entire car buying process simple, straightforward and safe.
Whilst digital technology has revolutionised communications, there is a dark side which demands ongoing attention. Critical to all web-based communications is the need for security. Here at MTA Queensland, our computer operational systems are up-to-date and safe. Our Chief Technology Innovation Officer James Orr and his team have ensured seamless and safe interactions between remote desktops to deliver to members existing services and the additional industry briefings.
Conscious of the need for online security for members, MTA Queensland conducted a free digital workshop/webinar for automotive small businesses. This was a component of our role as one of the 15 small business associations to deliver the Australian Government’s Small Business Digital Champion Project. The workshop/webinar dealt with the critical issues of online security, data privacy, working in the cloud and customer relationship management and software.
Prime Minister Scott Morrison’s warning of malicious cyber-attacks against Australian networks was to alert organisations to the threat and take steps to enhance the resilience of their networks. Three simple protection steps were advised: 1. Patch internet facing devices promptly – ensuring web or email services are fully updated with the latest software; 2. Ensure the use of multi-factor authentication to secure the internet-accessible infrastructure and cloud-based platforms; 3. Become an Australian Cyber Security partner to keep across the latest cyber threat advice and enable the earliest possible action to protect online activity.
The Australian Competition and Consumer Commission (ACCC), in its recently released Targeting Scams 2019 Report, highlighted the need to be risk averse in managing computer technologies. This included to maintain computer firewalls, passwords and antivirus protection and research the best software for computers and other devices and only buy from a reputable supplier. The advice from the ACCC was based on a litany of 336,000 scam reports in 2019 from its own Scamwatch, other government agencies and the big four banks. In all the scams cost $634 million in 2019.
Investigation into regional fuel prices
The Queensland Government has written to the ACCC seeking an independent investigation into fuel prices that encompass the towns of Warwick, Hervey Bay, Cloncurry, and Mount Isa. The letter advises of the shared concerns of Government and residents in these areas about inflated petrol prices. Motorists were not getting the same low prices as those in the larger cities, particularly during the COVID-19 crisis.
The government itself was trying to help motorists at the bowser with its fuel reporting trial. This requires fuel retailers to report fuel prices online within 30 minutes of change and has the goal of encouraging motorists to shop around and to find the service station with the cheapest fuel prices in the area. This up-to-date information from the trial was offered to the ACCC to assist any investigation into petrol prices.
The Government asked the ACCC ‘to look and investigate the fuel prices . . . and bring action including naming and shaming the retailers who are doing the wrong thing’.
Industry News
Welcome to Andrea McCarthy, the new Chair of the National Auto Collision Alliance (NACA). Andrea with her husband Craig, is the co-owner of McCarthy Panel Works, North Mackay. She is committed to equality and fairness and has a goal to streamline the sometimes ‘clunky’ industry. Andrea will be for the voice for her industry, the wider business community and represent women in a predominantly male industry. She is committed to progressing the industry so that every person on every level can benefit from a better, safer, more effective and efficient workplace.
Andrea, in the role of NACA Chair, is the first female MTA Queensland Director for almost 40 years. Mrs P Wyatt, as Chair the Service Station and Convenience Association served from 1984-1986 on the MTA Queensland Board.
Congratulations
Two of our members were named in the recent Australian Queen’s Birthday Honours List.
Rebecca Frizelle, Southport, was awarded the Medal of the Order of Australia (OAM) for service to the automotive sector and to rugby league. Rebecca is the Chief Operating Officer of Frizelle Sunshine Prestige and a shareholder at Frizelle Sunshine Automotive/Peter Warren Automotive.
Richard Ireland, of Cairns, was awarded the OAM for service to the community through a range of roles. These included the automotive sector as Co-Managing Director, FR Ireland Ltd; Dealer Principal, Ireland Holden, HSV, Mitsubishi and Isuzu Truck franchises; Director of the Australian Automobile Dealers Association; and Director of the Motor Trades Association of Queensland 1990-1991.
On behalf of MTA Queensland and the membership, congratulations to Rebecca and Richard on recognition of their distinguished service to their communities and the automotive industry.
Finally
We have some items that require consideration and action by members. MTA Queensland is running a survey to look at whether mechanical repairers are interested in pre-purchase inspections as a service to prospective buyers of used cars. Complete the short survey HERE. Another is to look at whether used car dealers are interested in pre-purchase inspections as a service to prospective buyers of used cars. Complete the short survey HERE.
This week, an online petition regarding repairable write-off of vehicles in Queensland has been posted to the government’s website. The petition relates to public safety continuing to be placed in jeopardy by the government’s lack of action in relation to the review of the repairable write-off scheme in the state. To sign, visit the petition on the Parliament’s website.
Until next month, take special care and stay safe.