There is no doubt that Aussies are doing it tough. Budget sensitivity is everywhere. The cost-of-living crisis, inflationary conditions, mortgage rate rises, and increasing fuel and energy prices mean that many consumers just can’t catch a budget break.
We are now in an era of cost-conscious consumerism, and fear drives the new consumer psyche. Consumers are no longer thinking simply about what to buy. They are reassessing what, how, when, where and why to buy across all categories - from milk to motor vehicles.
Consumers are questioning their brand selections and asking: Is it essential? Are there cheaper options? Should I buy now, delay my purchase, or not buy at all?
This fundamental reset means a new ‘buyer mission’ is at play. Consumers are prioritising needs over wants. This translates into saving money, swapping brands, switching across retailers, trading down labels, buying private labels, tuning into deals, and often, cutting spend altogether.
Cash-conscious and clued-up consumers are also empowering themselves through research. They now spend a disproportionate amount of time researching potential purchases online before buying to ease their minds and ensure they’re getting bang for their buck.
When the buyer mission changes fundamentally, retailers must adapt their offer.