In business, it is critical to keep in touch with your customer base. Regardless of what section of retail you’re in, from time-to-time you are required to adjust your business practices to keep up with the evolving demands of consumers.
Adapting your business to these changes is one thing, but what’s perhaps even more important is knowing that these evolutions are happening in the first place.
DWF, a global law firm, recently released its DWF & Retail Week Global Consumer Report 2019. The report surveyed 10,000 consumers spanning 10 international markets, including Australia, to provide insight into what customers are looking for in 2019.
From an Australian perspective, it found that our shoppers are more cash-strapped than their European and American counterparts, with two-thirds of respondents saying they have less than $450 disposable income each month. Unsurprisingly, this means that at present many Australians are prioritising lower prices over product quality when it comes to shopping.
When asked what factors influence their purchasing decision, 72 per cent of Australians surveyed said lower prices, compared to 59 per cent who cited product quality, and 57 per cent said discounted items. On the back of this information, and with retail currently going through a slow period, it may be worth reviewing your product pricing to cater to Aussie shoppers more interested in bargains than high quality items.
Interestingly, the report reveals that younger shoppers aged between 18 and 24 are the most optimistic when it comes to consumer spending, with this age group expecting to see a 44 per cent rise in disposable income overall. Moreover, 34 per cent of respondents in this age category intend to increase their retail spending in 2019 from 2018 levels.
The findings in the DWF report couldn’t be more timely for the retail sector given the underwhelming December ABS trade results that were released last week. With the sector experiencing a 0.4 per cent fall in monthly turnover, even basic information such as that provided by DWF can be helpful in ensuring your business successfully navigates a challenging period for the sector.
A link to the full DWF report and findings can be found here
I hope you have a great week!