The retail landscape looks very different to what it did just a few short years ago as consumer behaviours have changed.
Moreover, the economic headwinds that have emerged in the wake of the pandemic have hit many of us, with consumers tightening their purse-strings to make ends meet. This has left retailers facing the dual challenges of a decrease in consumer spending amid an increase in costs.
Shopify has released The Shopify Australian Retail Report, in partnership with YouGov. As a result of evolving purchasing habits among Aussie consumers, there are six new consumer personas that reflect what Australians are concerned about, where they’re focusing their budgets and how they want to interact with brands and products in the current environment.
“We’ve seen an onslaught of successive macro-level events impact so much of our lives from the obvious prioritisation of health post-pandemic to the fact that millions of Australian homeowners have faced not only their first but their 12th interest rate rise in the past year,” says James Johnson, director of technology services & enterprise, APAC at Shopify.
“It would be remiss to expect consumer priorities and behaviours to remain unchanged from 2019 or before. But what we’re seeing is that while, across the board, Australians share some common priorities and challenges, when you dive deeper into the data you find that there are clusters of customers where these diverge.”
1 The Value Valuer―they define value as ‘quality that lasts’ and prioritises product quality over brand. Least likely to be influenced by a celebrity or social media, this is the largest group, representing 32 per cent of all consumers surveyed.
2 The Loyal Local―they also value quality over brand and price and are likely to switch brands to support local or more sustainable businesses. The most likely to switch to public transport to save money, this is the second largest group, representing 24 per cent of Australians.
3 The Savings Seeker―they are the most stressed consumers overall and are the most price sensitive of all groupings. By far the most likely to switch to private label brands, this persona represents some 22 per cent of consumers.
4 The Mindful Moneybags―the wealthiest and most environmentally conscious cohort, these shoppers have not felt enough of an impact to change their shopping habits and make up 10 per cent of Australian consumers.
5 The Picky Purchaser―the second highest-earning shoppers, this cohort has the highest expectations when it comes to the shopping experience. They are the most brand loyal by a considerable margin and comprise eight per cent of Australians.
6 The Social Shopper―the most likely to shop online and the most influenced by influencers, this cohort is named after its members’ penchant for digital interaction. They prioritise speed in the purchase experience but are the least demanding overall and make up just three per cent of consumers.
When it comes to brands and loyalty, the majority of Australians (53 per cent) want consistently low prices and promotions, with offering high quality goods (50 per cent) and loyalty points (48 per cent) rounding out the top three.
“More and more we’re seeing customers prioritise quality and value for money over a bargain,” says Zhoe Low, global general manager, July.
“As a brand that means starting with great products and great promises which you then follow through on. In the current environment you’re fighting a lot harder to get that dollar and you can’t get away with bad products. At July we offer a lifetime warranty on everything in our range so customers can shop with confidence, knowing they’re getting something that will last the long-haul.”
