Sydney, Australia – 15 April 2019 – IRI today announced the results of their recent research into understanding the economic needs of shoppers. Early results indicate that Australians are feeling more concerned about their financial situation, with 51 percent of respondents feeling the economy will not improve in the next six months. The research undertaken by IRI surveyed 11,000 households across Australia utilising IRI’s Shopper Panel. The shopper panel is one of the largest of its kind in Asia Pacific.
IRI’s Chief Commercial Officer, Alistair Leathwood said, “Our initial survey results show that six in ten respondents believe that changes in the price of food will impact their budgets negatively within the next 12 months. Nearly half stated that they have already made cutbacks to save money.”
“56 percent of shoppers confessed they are already going to hair salons less often to save money and 53 percent are making personal care products last longer to save money.”
“34 percent of respondents are also giving up their favourite brands to save money and looking at alternatives that will fit within their budget.”
Overall, the survey shows that Australian respondents are feeling more concerned about their financial situation. Only 11 percent of those surveyed believe the economy will improve in the next six months.
Alistair said: “The mood across Australian households is not as positive as it could be. One third of respondents believe that their financial situation has worsened compared to last year. Only two in ten respondents believe their financial situation has improved since last year.
“While this feedback is concerning, it also tells us a lot about how Australian shoppers are feeling, which is essential in determining the types of strategies and solutions needed by retailers and manufacturers to maintain engagement with households and achieve desired growth.
“Despite the negative sentiment, strong growth will still be achieved across many areas of the grocery, liquor and pharmacy sectors. However, growth will require a deeper understanding of shopper attitudes and behaviour in order to hone offerings that deliver perceived value for both essential and non-essential items. For shoppers, affordable luxuries represent a way to live the good life on a tight budget."
“Shoppers will still continue to spend in the current market however their spend will be more thoughtful, considered, value driven and price sensitive.”
IRI’s complete research will be released at the end of May 2019.
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help FMCG, OTC health care, retailers and media companies to grow. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand cloud-based technology platform, IRI guides over 5,000 clients globally in their quests to remain relentlessly relevant, capture market share, connect with consumers and deliver growth. www.IRIworldwide.com.
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