smh.com.au
The Iconic's Fight for Survival in a Disrupted E-Commerce Market
Facing intense competition from Amazon, Shein, and Temu, Australian online retailer The Iconic is streamlining operations, improving customer service, and launching a loyalty program to regain market share and profitability after a period of losses and restructuring.
- What are The Iconic's future plans, and what are the potential implications for its long-term success?
- The Iconic's future strategy involves launching a loyalty program in October 2024 to enhance customer retention. While exploring physical activations, it plans to remain solely online to avoid the complexities of managing brick-and-mortar stores. The success of these strategies will determine The Iconic's long-term position in the competitive e-commerce market.
- How has The Iconic's performance changed since 2023, and what specific strategies are contributing to this shift?
- The Iconic's performance has improved significantly since 2023, a period marked by losses. This turnaround is attributed to cost-cutting initiatives, operational streamlining (including a new head office and warehouse consolidation), improved delivery times (halved in Melbourne), and a renewed focus on customer service. Active customers are growing again, exceeding 2 million, and gross profits reached $127.2 million in the first half of 2025.
- What significant challenges does The Iconic face, and what immediate actions has the company taken to address them?
- The Iconic faces fierce competition from global giants like Amazon, Shein, and Temu, which are reshaping the global retail landscape. To counter this, The Iconic has undertaken cost-cutting measures including redundancies and warehouse consolidation, focusing on improving delivery times and customer service.
Cognitive Concepts
Framing Bias
The article presents a balanced view of The Iconic's challenges and successes in the competitive e-commerce market. While it highlights the company's struggles against rivals like Amazon, Shein, and Temu, it also showcases its strategic responses, such as legal action against Shein and initiatives to improve delivery speed and customer service. The narrative doesn't overtly favor either side, although the positive developments in The Iconic's performance towards the end of the article might leave a slightly more optimistic impression.
Language Bias
The language used is largely neutral and objective. While terms like "blistering rise" and "ultra-cheap retailers" might carry slight connotations, they are used within a context that allows for a balanced interpretation. The overall tone is informative rather than opinionated.
Bias by Omission
The article could benefit from including more diverse perspectives beyond the CEO's statements. While it mentions competitor strategies, it would be beneficial to include independent analyst opinions or data on market trends to provide a more complete picture. However, given the article's focus and length, this omission is likely due to practical constraints.
Gender Bias
The article features a male CEO as the primary source, which is a common representation in business reporting. However, it also includes a female CEO (Olivia Wirth from Myer) for comparative purposes, balancing gender representation to some degree. There's no apparent gender bias in the language used.
Sustainable Development Goals
The article focuses on The Iconic's efforts to improve its business performance, including cost-cutting measures, improved efficiency, and growth in active customers and earnings. These actions directly contribute to decent work and economic growth by securing jobs, improving business profitability, and fostering a more competitive market. The company's success also indirectly supports economic growth within the broader Australian retail sector.