The cost of living crisis in Australia is causing a significant shift in consumer behaviour, according to research by M&C Saatchi.
The study, Prioritisation, planning and promos: How Australia is learning to live with the cost of living crisis, finds women are exhibiting concern regarding the cost of living crisis.
More than a third (36%) of women feel anxious, which is greater than the 20% of men that responded with the same concern.
This has implications for brands and businesses, given women account for 85% of all purchases and drive 70-80% of all consumer spending.
M&C Saatchi sees the emergence of the intentional shopper, a consumer who prioritises spend in a much more planned and deliberate way (making sacrifices to protect what they value most).
Emily Taylor, chief strategy officer at M&C Saatchi Group, said proactive brands were acting now to stay in favour with consumers.
“We have seen our clients take action in this cost of living crisis to really help their customers, including innovations and utility to better plan their spending,” she says.
“To stay in a customer's consideration phase, brands need to be adapting to new behaviours; less sporadic spend and more intentional, conscious consumption.”
The study focuses on six consumer trends:
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Going deeper into subscriptions: cancelling streaming services but looking deeper into the archives of the ones that they are retaining. 26% of respondents will cancel one or more pay tv/streaming subscriptions in the next three to six months.
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Substitution. Customers more likely to be open to try new brands or products, whether that be new retailers ( supermarkets) or buying cheaper substitutes such as home brands.
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Using loyalty programs more: 24% of people are using loyalty program memberships more frequently.
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Squeezing the last drop: They are holding onto makeup products longer (91% are shopping less frequently for makeup and skin care and 90% are making products last longer).
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More planned: There is less spontaneity and customers are going into supermarkets with a list and not deviating off those lists.
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Hunting for deals: Consumers are spending more time researching products and seeking discounts. Even Gen Z are seeking discounts and coupons and sharing them with a sense of pride with their networks.
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