Consumerism has been on the rise since the 1890s, where mail-order became popular amongst the richer classes. Capitalism plays a strong role in creating a world that embraces consumerism, and the need to obtain more stuff has evolved with the current expectations and demands of the world.
Shops shifted online to reach a broader audience, and as logistics improved across the globe, the reach of e-commerce expanded alongside it. Then, came Covid-19, the virus that swept the nation and shut the doors of retail for extended periods of time, causing consumers to turn online for everything from their daily essentials down to their desires.
The pandemic has ensured the survival and expansion of e-commerce, and in Australia, we’re seeing a surge in demand for both e-commerce and online entertainment and their spending power has surged alongside them.
Australians are some of the biggest spenders per capita in digital shopping and online streaming, with the average Australian spending close to four hours every day on streaming and entertainment.
According to the Australia and Entertainment Outlook, total media consumption is set to surpass AUD$50.6 billion by 2024. Along with these growths in spending habits, Australia’s economy has also been primed for e-commerce growth.
In fact, international surveys have placed Australia as one of the top e-commerce performers, jumping up six ranks from 11th place to 5th, right behind Korea, America, and the U.K. Furthermore, 61 per cent of Australian consumers highlight that online shopping is their first choice whether they are buying food, groceries, or personal care items.
The direction that e-commerce in Australia is headed
When we look at the general picture of retail and consumerism, there is a strong trend that simply cannot be ignored. Brand loyalty is slowly falling behind and Australian consumers are no different.
The new generation of conscious consumers are making informed decisions when it comes to their patronage. If a brand or company is linked with something that does not align with their values, such as animal testing, consumers are more than willing to drop that brand in search of another and pricetags matter less and less these days.
At one point, it would seem that the cheaper and better value the product provides, the more popular it is. But as consumers have become more conscious about the manufacturing and even marketing process, they are making choices that directly reflect their own values and ethics.
According to Dr. Andreas von der Gathen, the co-CEO of a renowned global strategy and pricing consultancy, “The relative importance of sustainability during the purchase process will continue to increase. Today, 50 per cent of consumers rank sustainability as a top-five value driver. As expectations around sustainability climb, companies will face significant pressure to prove their sustainability credentials and continue to make it a central part of their value proposition.”
Also Read: The long and winding road to e-commerce profitability
For companies to grow sustainably, they have to have sustainable practises. Eco-friendly is a new buzzword and everyone, Australians included, wants a slice of that.
Personalisation will go to new heights
One thing that the pandemic has proven is that food will always be something that people are willing to splurge on. While it is a basic necessity, it isn’t enough for your average consumer to have sub-par meals.
They are more than willing, much like their choices for products, to go with restaurants that provide ethically sourced ingredients that are palatable and suit their dietary needs.
The idea that everything should be custom-picked for consumers is where the general consensus is headed. In a recent survey, Australians mentioned that they expect that e-commerce sites will show them products and items that are tailored to their needs and desires, and more than 88 per cent of those respondents said that they have bought something that Amazon recommended them to buy.
With this in mind, consumer personalisation is something that should be seriously considered.
Any company which is able to break into that field and really provide consumers with a bespoke service will win in the game of e-commerce, where everything is available (including information regarding the brand, service, or product) at the click of a mouse.
If you want to get ahead, listen to your demographic
Products and consumers share something of a symbiotic relationship. The consumer demands, and the product supplies.
However, if the company that’s producing these products continues to stay deaf and blind to the growing voices of their consumers, they will lose them at the drop of a hat.
Bearing in mind that consumers are no longer the loyal customers of generations past, and are not afraid to try something new, especially if that something is endorsed by other people and flaunted on social media in an organic manner.
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