MCKINSEY AUSTRALIA | Getting acquainted with a more mindful Australian consumer
After a year of uncertainty, Australia’s consumers want to be back in charge.
Australians are looking to take more control of their day-to-day shopping decisions – and this has significant implications for Australian retailers and B2C businesses according to new McKinsey & Company research.
WORDS | MCKINSEY AUSTRALIA
In Getting Acquainted with a More Mindful Australian Consumer, McKinsey Australia’s latest insight from The Story of the Australian Consumer series, dives into the legacy impacts that a year of COVID-19 will leave with Australians as we hope for recovery.
McKinsey’s research shows that more than 50 percent of consumers have discovered new shopping behaviours, more than 30 percent have tried new brands, and more than 20 percent have tried new retailers, stores, and websites since the start of 2020.
“In a world rife with uncertainty, consumers will strive to exert control where they can,” says McKinsey partner Jenny Child, series co-author and leader of McKinsey’s Consumer Packaged Goods and Retail practices in Australia and New Zealand.
“Many Australians have made new or renewed commitments to personal values and goals, such as wellness or family. While we first saw this increased mindfulness affecting consumer decisions on staples like food, we see it is translating into more planned and considered shopping across the board.” But, says, Child, this is not just about saving money.
“We find that yes, price is a driver, but that it’s a mistake to think this is all about price. Brand trust, a perceived ‘localness’, and non-price issues like ethics and sustainability are still tipping points in purchase decisions. But at times these will compete against each other depending on how a consumer perceives the economy and their personal fortune on a given day. The tension between price, local, small, premium, and sustainable will be like a ‘toggle’ that plays out differently based on who the customer is, what the purchase is, and so on.”
‘COVID-19 has been a shock to customer loyalty – and that’s gold for brands and services that can get in while minds are open.’ - Jenny Child
Read the full report via the link below.
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