Key Findings:
Brand Switching: Consumers in Australia and New Zealand are increasingly switching brands due to the rising cost of living.
Extended Purchase Journeys: Consumers are taking more time to research and evaluate products to find the best value.
Value-Driven Decisions: "Value for money" is the primary factor influencing purchase decisions.
Grocery Spending Decline: Spending on groceries has either declined or plateaued across all income levels.
Delayed or Skipped Purchases: A significant proportion of consumers are delaying or skipping purchases altogether due to financial pressures.
Economic Concerns: Both Australians and New Zealanders are primarily concerned about the cost-of-living crisis and economic turbulence.
Anxiety and Insecurity: The economic situation is leading to increased anxiety and insecurity, particularly in Australia.
Key Takeaway:
The cost-of-living crisis is driving significant changes in consumer behavior, with brand switching, delayed purchases, and a focus on value becoming the norm across all income levels.
Trend:
The "New Value Economy" is emerging, where consumers prioritize value for money and are more willing to switch brands to find the best deals.
Consumer Motivation:
Consumers are motivated by finding the best value for their money, seeking deals and promotions, and ensuring their purchases align with their budget constraints.
Driving the Trend:
The rising cost of living, inflation, and economic uncertainty are the primary drivers of this trend.
Target Audience:
The research focuses on consumers in Australia and New Zealand across all income levels.
Product/Service:
The research examines consumer behavior across various retail categories, with a particular focus on groceries.
Conclusions:
Brands need to adapt to the changing consumer landscape by focusing on value, offering competitive pricing, and providing a positive customer experience to retain and attract customers.
Implications for Brands:
Brands must be flexible in their marketing strategies, emphasizing value beyond just price and promotions. They need to cater to both new customers seeking better deals and existing customers who are more likely to switch brands.
Implications for Society:
The cost-of-living crisis is impacting the well-being of individuals and communities, leading to increased anxiety and insecurity. Brands and policymakers need to acknowledge these challenges and address them with empathy and understanding.
Big Trend Implied:
The rise of the "New Value Economy" signifies a broader shift in consumer behavior towards a more conscious and value-driven approach to spending, likely to impact various industries beyond retail.
Comments