The Australian Ecommerce Report 2022 released today by IAB Australia and Pureprofile (ASX: PPL) has found that while shoppers have been able to get back into physical stores, regular online purchasing for both groceries and retail products have increased since last year with 83 per cent of online shoppers buying every month.
Convenience was named as the number one reason for purchasing online by 77 per cent of respondents, while value for money was identified as the most compelling feature for online brand purchases by 84 per cent of respondents. Fast shipping declined as a driver of purchases.
The Australian Ecommerce Report 2022 found that seamless omnichannel shopping experiences that deliver convenience and value for money will present the biggest opportunity for brands this year as shoppers return instore.
However, it also issued a warning to retail marketers to assess their marketing strategies more regularly into 2023 to ensure they can adjust activities to respond to economic changes, navigate the continuing influence of covid, optimise shoppers omnichannel experiences and bolster confidence among hesitant shoppers.
The Report, which is based on research conducted with 1,000 Australian online shoppers examining the consumer attitudes, behaviours and influences driving ecommerce in Australia, identified clothing, shoes, and fashion as the most popular online purchases in the last year at 74 per cent, up slightly from 72 per cent in 2021. The largest online shopping growth area was the purchase of groceries, increasing from 54 per cent in 2021 to 64 per cent in 2022.
30 to 39-year-olds were identified as more likely than any other age group to purchase a range of different products online, while 18 to 29-year-olds were most likely to purchase jewellery, handbags, and accessories online; and 40 to 49-year-old were interested in electronics, technology, and mobile phone purchases online.
Two thirds of online shoppers were reported as saying cost of living pressures mean they don’t have as much to spend on less essential retail shopping this year, while 65 per cent reported the potential for further interest rate rises means they are more cautious about spending, particularly young families.
Those currently experiencing cost of living pressures are more attracted to online shopping for price comparisons and for finding specific products. They are more likely to be looking for value in programs such as store loyalty cards.
The research explored consumer engagement with retail media channels, with 58 per cent of online shoppers regularly reading retailer content. However, it also reinforced that retailers need to be clear and transparent about their usage of shopper data provided via their transactions, with 55 per cent of online shoppers somewhat or very concerned.
A further 11 per cent of online shoppers note that their level of concern depends on how much they trust the retailer they are providing data to. Most online shoppers do understand that their data is used for targeting advertising and marketing, however 24 per cent don’t know whether retailers share their data with other companies.
Online search remained as the key to discovering brands when shopping online, however word of mouth has strengthened as a source of inspiration. 59 per cent of 18-29’s use social media for product inspiration, while 30-39’s rely more heavily on friends and family or shopping events and over 50’s were most heavily influenced by online search and emails from retailers.
Gai Le Roy (pictured), CEO of IAB Australia said: “Since the onset of COVID in 2020, consumer online habits have changed, and retailers have made investments in digital transformation which has resulted in a huge growth in ecommerce expenditure. This growth has continued into 2022 but with the expectation of future economic downturn, retailers will need to service customers who have embraced the convenience of home delivery as well as click and collect but are increasingly price sensitive.”
Martin Filz, CEO of Pureprofile added: “After a challenging period where retailers were forced to pivot to online and many flourished, those retailers now find themselves at an interesting juncture – needing to maintain their growth while also being aware of the economic environment. Through this year it will be especially important for retailers to keep close to their consumers and examine changing sentiment swiftly.”
Other research findings include:
- 47 per cent of online shoppers have purchased from a direct (to consumer) brand, while 31 per cent have purchased multiple direct brands. Direct brand shoppers tend to be younger and more frequent online shoppers and they maintain strong customer loyalty with 64 per cent of online shoppers purchasing from their favourite direct brand on multiple occasions and 61 per cent reporting they would rarely or never buy their favourite direct brand product from a different business. 39 per cent of direct brand shoppers are subscribed to a product delivery service.
- 48 per cent of online shoppers are aware of shoppable advertising, with 21 per cent of 18-29’s and 25 per cent of 30-39’s having made an online purchase this way.
- While value for money stands out as the most compelling feature of brands purchased online, hygiene factors such as being simple to buy and having quick and easy returns are also important.
- Digital touch points which also provide rich behavioural data for retail marketers are dominating retailer communications. 58 per cent of online shoppers often read content produced by retailers, with websites and emails topping the list, while physical catalogues and free reading magazines have both declined year on year.
- Rewards programs continue to thrive with nine in ten shoppers signed up to at least one shopper reward program. 40 per cent of those signed up to rewards program have four or more cards (down from 45 per cent in 2021).
- Nearly half of online shopper’s report that purchasing from ethical brands is important to them, while 29 per cent of shoppers said that if they trust a brand, they will buy without looking at the price. Community connections built during COVID being maintained, with the Report finding 47 per cent of respondents indicated they are now more likely to buy from companies they feel behaved well during the COVID crisis and 48 per cent buying more things from online from local retailers.
Marc Collister (pictured) of P2 Content Creators spills the beans on his 2024 predictions drawing from two decades of experience in the advertising, film and television industry. I’m certain it will come as no surprise that in 2024, we can expect our industry to move at breakneck speed again. With even more rapid shifts in […]
Reddit’s annual Recap report has revealed the issues and moments that captured Australia’s collective mind over 2023 with, naturally, the Matildas featuring high on the list. The inaugural Australia-hosted Women’s World Cup saw Aussies glued to the footy (or, indeed soccer) with one enterprising user capturing the moment that Cortnee Vine scored the winner against […]
Zeno Australia has announced expanded creative design capabilities and the appointment of Jim Michell (lead image) to its senior leadership team. The new moves support strong growth in the region. Zeno Australia’s clients, including Abano Healthcare, Motorola and Yorkshire Tea, can now tap into a suite of creative design services to augment the agency’s work […]
Spikes Asia, APAC’s most prestigious and sought-after Award for creativity and marketing effectiveness, has revealed its 2024 Jury line-up today. The 93 industry experts from across 18 markets represent APAC’s leading talent from a diverse range of disciplines. 2024 sees the highest representation from brands, including Budweiser, Procter & Gamble, Unilever and, for the first […]
Assembled Media, is drawing upon the creative power of TikTok Creator Marketplace to help generate unique, impactful content for iconic stationery brand, BIC. The social activation campaign titled ‘A Pen for Every Side of You’ promotes the flexibility of BIC’s 4 Colours pen and is active nationwide on the BIC Stationery TikTok account. The campaign […]
Pinterest reckons jellyfish & moody cowboys will be big in 2024. Refused to be drawn on the return of shoulder pads.
IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series, which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide […]
Scope3, the collaborative sustainability platform leading the decarbonisation of media and advertising, announced the addition of digital out-of-home (DOOH) to its emissions measurement. With DOOH ad spending predicted to grow from $17B in 2023 to nearly $24B by 2028, measuring this channel brings us one step closer to understanding the total impact of digital advertising […]
NRF 2024: Retail’s Big Show Asia Pacific, is now open for online registrations for the main conference. Jointly organized by the National Retail Federation and Comexposium, Retail’s Big Show Asia Pacific will take place from 11 – 13 June, 2024 at the Sands Expo and Convention Centre in Singapore and is expected to draw thousands […]
Following a period of significant client growth, leading auto marketing agency, DBC2 has appointed Jason Fisher (lead image) to the newly created role of CEO. The appointment is part of DBC2’s long term growth strategy ahead of the agency announcing a brand refresh and expanded proposition in early-2024. As a new shareholder of the business, […]
Don’t treat regional media as a charity, but a real growth opportunity: That’s the message from Boomtown’s final masterclass of 2023, attended by almost 100 media industry representatives from across the nation. The masterclass was part of a series of educational sessions, delivered by Boomtown, the media collective championing advertising in regional Australia. The sessions […]