Australians shop more mindfully
Australians are shopping more mindfully, with a recent NAB consumer sentiment survey showing they are more cost-conscious and demand for local, sustainable and value brands is rising.
The survey for the second quarter also found that customers are more informed, but also more demanding and impatient for fast, efficient service. In addition, they are willing to buy from businesses and brands that align with their values and location.
The study reveals that 44 per cent of consumers in the second quarter were being more mindful about where they spent their money and around 35 per cent were much more conscious of buying Australian-made rather than overseas products.
Consumers continue to be conscious of looking out for their local community and the businesses they serve, with 34 per cent saying they were more mindful of supporting local businesses in their area.
NAB executive for small business, Ana Marinkovic, says these were trends that are likely to endure beyond the pandemic when consumer appetite for locally produced products grew.
“Since the onset of the pandemic, more customers are choosing to support local businesses and buy Australian-made. This is reflected in our lending to local manufacturers over the past 12 months,” says Marinkovic.
“Lending to the industry is up 15 per cent to $7.6 billion in the last year – a strong sign that customers are becoming more demanding when it comes to where and how the products they are purchasing are sourced.
“With ongoing pressure on global supply chains, we’re also seeing more business owners look at their own supply chain and identify where they can source product and materials locally to reduce the dependence on international suppliers.”
Other key themes from the survey include researching brand and product choices before buying (+27 per cent) and making purchases because of great deals (+24 per cent).
There were also noticeable declines in consumers buying products based on delivery times and cost (11 per cent), purchasing online to avoid going into a store (11 per cent), buying products due to convenience (8 per cent), and buying online and picking up in-store (3 per cent).