What has happened?
Despite a devastating drought and a contracting housing sector, according to the ABS, consumer spending in Australia continues to increase in 2019.
Coupled with the recent Nielsen ‘Changing Consumer Prosperity’ report, we can see that consumers in the Asia-Pacific region are feeling positive about their current financial situation. In fact, 70% feel better about their financial situation than they did five years ago. Having said that, they do feel that the cost of living is increasing, particularly in groceries, education and technology. To combat this they are changing their spending priorities, being more cost-conscious on the everyday purchases so that they can still enjoy life’s luxuries. In fact, 61% feel that they live comfortably and able to still buy the things that they want. The top 5 categories identified in this study which consumers are willing to pay a premium for include personal electronics, clothes/shoes, cosmetics and jewellery.
The Media Store Take
So what would we recommend brands do to capitalise on this increased consumer spending? In our 2019 E(xperiential) commerce trend we have seen a move from brands needing to persuade consumers to engage them and now excite them with meaningful experiences, both in the real world retail environments and online. We would encourage our clients to think beyond faster, cheaper and easier in the retail space. Together we need to facilitate inspiring experiences that both feed the Millennial and Gen Z aspirations but also help build brand trust through powerful consumer experiences, enriched by AI, tech and games. To find out more, download our 2019 Marketing Trend canvas.