Retailers lost competitiveness due to strong AUD

One of the compelling reasons why retailers are seeking to increase taxes on foreign websites is the strength of offshore websites. When the Australian dollar is strong, these websites, which price in USD, are more competitive. They are targeting an international customer base, and unlike the major currencies like the Euro and USD, the Australian and NZ dollars are strong. The AUD has even surpassed parity. This has two consequences:

1. Local retailers are less competitive

2. Local manufacturers are less competitive

The implication is that:

1. These industries are forced to improve to hang onto their profit margins

2. They are forced to shift parts of their businesses offshore, e.g. Importing components, or sourcing more foreign components, etc.

The reality is that local retailers are really acting VERY LATE. They ought to have expected a stronger Australian currency 20 years ago. The message was on the wall for everyone to see....they just didn't read it, and respond. I remember at least 15 years ago that newspapers were forecasting huge gains in mineral prices and exports. That equals mining boom. Why? Chinese and Indian industries would need raw materials. We all knew that internet commerce would take off. These facts were well known...why did they retailers fail to invest in online commerce? They just didn't see the market trends and now they want Australian consumers to accept a tax to protect them....no way!

It is interesting they waited until the AUD reached parity. That must have been the thin edge of the wedge...and now they are doing a dummy spit.