AUSTRALIA | New research from ShopFully, the leading tech company in Drive to Store with a presence in 12 countries, has found the majority of Australians (87 percent) are planning to rely on promotional deals and discounts over the next 12 months as over three quarters (78 percent) aim to limit their spending amidst the rising cost of living.
ShopFully surveyed 1000 Australian consumers and 10,000 consumers across Europe in February 2024 on their anticipated shopping behaviours and habits over the next 12 months, looking into preferred purchasing methods, how they research products and whether they opt for environmentally friendly products over a choice that isn’t.
Cost of living crunch
The new data shows over half of Aussies (53 percent) do not expect their purchasing power to improve in 2024, with many planning to limit their spending across food and beverages (34 percent), beauty purchases (46 percent), clothing (50 percent), electronics (49 percent) and home furniture (52 percent).
While consumers are planning to tighten their purse strings in general, the survey reveals Aussies are planning to spend more strategically, with big purchases planned around big sales moments like Black Friday (30 percent). Over half flagged they will be on the look out for promotions all year long (57 percent).
“Our recent research peaks have been consistent in uncovering the concerns of the Australian consumer around the cost of living crisis the country finds itself gripped by,” said Brendan Straw, Country Manager of Australia for ShopFully.
“It is encouraging to see that – although spending is set to decline – consumers are being more savvy about when they spend, relying on promotional deals and big sales events to make up for planned cutbacks on a variety of different goods."
Spending priority comparisons to Europe
In 2024, less than one in ten consumers are not taking the sustainability of products seriously, with only 9 percent in both Australia and Europe flagging they do not consider it to be important how environmentally friendly a product is when spending. In fact, over half (53 percent) of Australians would pay more for a product that was sustainable or ethically made.
When asked what drives Aussies to try new brands, attractive prices or discounts was the top choice at 65 percent, while quality was the top choice for consumers choosing a specific brand in Europe at 66 percent.
When looking at purchasing habits, both regions are well attuned to researching products online before they buy in store, with 85 percent of Australians and 78 percent of Europeans following this practice.
The survey also uncovered that Aussies are not adopting AI as a mechanism to help them shop, with just 5 percent having ever used a smart speaker or other AI tool to help them make purchases.
“While there are many commonalities between Australia and Europe in how best to research products and a serious concern for our environment, it is interesting that consumers differ on what they value when it comes to brand loyalty," said Straw.
"It’s somewhat unsurprising that a low percentage of Australian consumers have used AI when making purchases, but we expect the technology to have a big impact on the shopping experience over the coming years, enabling a more transparent flow of information on promotions and ultimately encouraging Aussies to do more shopping in store."
