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Current Australian Retail Trends

GEN Y & GEN Z

  • Most powerful generations now GEN Y (1980 – 1995) & GEN Z (1995 – 2010) 44% workforce and 10.5 million of the population. Aspirations are life experiences, making a difference and a sense of purpose
  • 1/3 started or deepened a business relationship because of the company’s ethical behaviour
  • 1/3 stopped or lessened a relationship because the company’s products/ services negatively impact the environment/society.

THE RISE OF THE CONSCIOUS CONSUMER
Consumers want to make ‘good’ consumption choices that align with their values

  1. Want brands to use sustainable ingredients or materials.
  2. Believe that sustainable business practices should be standard.
  3. Feel it’s important that a product is made from recycled materials.
  4. Are willing to pay more for products from a sustainable or socially conscious brand.
  5. Are willing to pay more for products that do not infringe on human rights.
  6. Feel that shopping should positively contribute to their quality of life.
  7. Want to know where and how products are made (transparency)

Consider how you can positively show improvement in sustainability ie; decreasing single use plastics


STORE EXPERIENCE

  • The traditional sectors of retail, restaurant, hospitality, wellness and entertainment are blurring.
  • “Physical retail isn’t dead, boring retail is”- Retailers need to engage consumers by creating experiences.
  • Millennials prefer to spend more money on experiences than on material things.
  • Majority of buyers will pay more for a better experience.
  • 1% increase in time spent browsing instore can lead to a 39% increase in sales per customer.
  • Consider other services you can offer (ie; Workshops, VIP nights, Repairs, entertainment etc)
  • Individualised ease of experience adds value.

ENHANCING EXPERIENCES THROUGH DIGITAL

  • Payment services and options are increasing rapidly
  • Digital Signage cheaper long term cheaper, more sustainable and more flexible with messaging
  • Ensuring your online and store channels are consistent with product/pricing/promotions.
  • Facebook and Instagram are the most popular social channels for Retail.
  • Zoom meetings have changed peoples time for work, travel, relaxation, social options.

PRODUCT DELIVERY CONVENIENCE

  • Click and Collect options
  • Home Delivery (not just food)
  • FREE SHIPPING (minimum spend acceptable)
  • FREE RETURNS definitely improves conversion rates
  • Same day delivery demand increasing

ONLINE

  • More customers than ever are comfortable shopping online more frequently for a wide range of products and services.
  • Customers also becoming comfortable with online customer service (Live Chat, Social Media etc)
  • Researching and comparing (where its stocked, price, promotion) reviews etc very important part of the customer journey.

LOCAL

  • 2/3 of Australian shoppers expect to shop more for products that are locally produced.
  • Due to imported products hard to access, increase in freight and production/transport timing
  • Support for employment within Australia
  • Keep the $ in Australia
  • Reduces carbon footprint if product travels less Kilometres

OTHER FACTORS TO CONSIDER

  • May be hard to access imported products.
  • Demand may be different to previous years with many changes such as working from home, comfort, home cooking, home entertainment, house focus (garden, renovations), fitness, pets etc
  • Safety, personal space and hygiene actually impact on many customers anxiety levels, this may reflect in more online sales also.
  • Many customers may feel financially comfortable and alternatively spending money on retail that would have been spent on travel (especially high quality luxuries) as a treat and a feeling of well deserved.

 

referenced from KPMG & ACRS Monash