How retailers can win customers amid mounting economic pressures
This Industry Insight is produced in commercial partnership with Shopify.
Australian retailers face significant challenges in the wake of COVID-19, including inflationary pressures, tightened spending and shifting consumer behaviours.
With challenging times comes opportunity for innovative retailers. Harry Cunningham
Both essential and discretionary items are costing more today than 12 months ago, so it’s no surprise that 75 per cent of consumers say they have cut back on spending to save money. That said, over half are still spending on discretionary items — so there are still sales to be made.
With challenging times comes opportunity. This is the chance for retailers to evolve, innovate and strive to meet changing consumer expectations and stay ahead of the competition.
Recent research from YouGov, commissioned by Shopify, identified six new consumer segments characterised by their priorities, stressors, attitudes and purchasing behaviours.
The large majority of Australians prioritise purchases that represent good value for money, with close to a third of Australians prioritising value over all other decision-making factors. Australian direct-to-consumer luggage start-up July, for instance, has had success in tapping into this Australian desire for value by promoting the lifetime warranty consumers enjoy when they purchase a suitcase.
James Johnson is director of technology services and enterprise (APAC) at Shopify.
Despite this rising focus on value, almost half of the consumers surveyed claimed to have bought from another brand because of price (49 per cent); proof that price remains the biggest predictor of whether a customer will churn. This puts retailers in a tricky position, as nearly all admitted to
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