Article by our partner, Latitude
Covid has permanently affected Aussies’ shopping behaviour. We can see it in our own data – and it’s reflected in reports from consulting and research firms.
So, what consumer shopping trends are we seeing in 2022? Let’s take a look.
Sustainability is becoming more important to customers when it comes to deciding who they shop with. 67% of consumers are interested and engaged with how industries, companies, and consumers can make the change. 42% act positively or negatively in response to companies’ sustainability practices and 12% are willing to pay more based on sustainability practices.
Connecting online and offline seamlessly
Connecting on and offline is becoming more normal for businesses. Up to 65% of retailers are focused on delivering fully integrated experiences. According to Gartner’s Retail Technology Study, the most common seamless transaction features are click and collect, the ability to return to the store, and including stock information online.
Buy now, pay later (BNPL) for big-ticket items
Research conducted for Latitude by Lewers Research found that consumers want more from BNPL providers. 74% of respondents wanted a BNPL facility for bigger items from $1,000 to $10,000.
Shopping less but buying more
“Ducking out to the shops to grab something” is becoming a thing of the past. The effects of Covid – like lockdowns, restrictions, and wanting to avoid being around groups of people – have meant that people are shopping less often – but buying more stuff when they do. According to research by Boston Consulting Group, baskets have increased 8% to 15% on average across retail.
E-commerce takes a bigger piece of the pie
E-commerce sales were already making up 10% of retail sales in Australia pre-Covid, but this increased to 15% in 2021. It’s expected to continue, with more people buying online for the first time (+22%) and plenty of existing customers (+88%) buying more products across more categories.[RC(1] [RC(2]
Up with health, down with booze
The pandemic has made people more focused on health. More than 20% of Australians are planning to increase spending to achieve ‘wellness’ (including using the savings they’ve built up). As customers adapt to “the new normal”, there are category winners and losers. Appliances, cars and cosmetics are on the up, while alcohol, apps and video games, and business travel are trending down.
Boston Consulting Group (The Next Normal: Outlook for Australian Retail in 2022) https://www.bcg.com/publications/2022/australian-retail-market-trends-perspectiveshttps://lnkd.in/gEgwgfMQ
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