Bazaarvoice has released its annual Shopper Experience Index, including interviews with over 1,000 Australian consumers showing that Aussies are feeling cautious with their spending.
The results revealed that shoppers are curbing their spending and becoming more cautious with their purchases in the current economic climate. The data also indicates consumers are relying more heavily on user-generated content (UGC), such as ratings, reviews, and shopper photos, to make decisions and that social media impacts every stage of the shopping journey, from discovery to purchase.
In addition to Australia, the survey encompassed six other countries: the UK, the USA, France, Germany, Canada, and Spain. The data highlights that Australian consumers are among the most cautious, with 73.9 per cent stating they have altered their shopping habits and 80.2 per cent reporting they have cut back on discretionary spending.
Most Australians (~66 per cent) have also reduced spending on “practical” (described as justifiable and reasonable items) and “delayable” (shopping that can be postponed) purchases, with only UK consumers showing higher reductions.
The only area that has seen smaller reductions is in “essential” purchases (considered necessary for survival or healthy living), with 29.2 per cent reducing spending, 20.3 per cent increasing it, and 49.8 per cent maintaining previous levels.
Further data illustrating the reduction in consumption comes from those who buy on impulse. Among these consumers buying cheaper products, only 2.8 per cent report shopping by impulse.
More than eight in ten Australian shoppers (80.5 per cent) say they are relying on content from other consumers as much or more than they did last year to make purchasing decisions. They primarily seek information related to value for money (65 per cent), products’ quality (49 per cent), and if the item suits their intended use (45.9 per cent).
The survey reveals that a significant percentage of respondents feel more confident in a purchase when they use shopper content (61.7 per cent) and are unlikely to buy a product without shopper content (39.0 per cent).
“This year’s study underscores the economic impact on Australian shoppers’ behaviours and their reduction in spending,” said Kate Musgrove, APAC managing director at Bazaarvoice. “The data also reveals how, in times like these, consumers depend even more on fellow shoppers for advice and view social media as their primary source for product discovery and purchases”.
According to the survey, social media significantly impacts shopping behaviour, from product discovery to purchasing decisions, with 49.1 per cent of respondents agreeing that they often discover products or services through social media channels.
Globally, 73 per cent of shoppers aged 18-24 have purchased something on social media in the last year, and three-quarters (76 per cent) say they are more likely to discover a product through social media than through any other means.
