2021 Current Australian Retail Trends

THE RISE OF THE CONSCIOUS CONSUMER

Consumers want to make ‘good’ consumption choices that align with their values

- Want brands to use sustainable ingredients or materials.

- Believe that sustainable business practices should be standard.

- Feel it’s important that a product is made from recycled materials.

- Are willing to pay more for products from a sustainable or socially conscious brand.

- Are willing to pay more for products that do not infringe on human rights.

- Feel that shopping should positively contribute to their quality of life.

- 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.

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.