Beyond the noise of seasonal activities there was a disquieting reality evident during the Christmas period.
The hype failed to kindle exuberant spending. Most consumers tended to be measured, influenced by repeated cost-of-living references and aware that personal debt was at, or nearing limits.
Noticeably, spending restraints were not greatly determined by prudent budgeting and disciplined shopping-list documentation. Belts were simply being tightened in a general sense. Less than 12% of adult Australia reported setting budgets for gift giving, food purchases, celebratory activities and intended outlays for holidays. Some 42% of people declared writing a partial Christmas period shopping list, of which 16% was a complete list.
Anecdotal evidence reported strong and conspicuous foot-traffic. Revenue count was less, reflecting purchases of house-brands and cheaper substitute brands. Hence, unit sales recorded marginal increases, but monetary turnover was contracted.
Online purchases totalled around 16% across a broad section of products, services and categories. It was a channel widely utilised by a significant majority (exceeding 64%) for searching, evaluating and pricing desirable and available merchandise, services and experiences.
Interestingly, the trend to spending on a host of life experiences continued, with an emphasis on elite sporting events, concerts and like activities. Clearly, there were highlights in an economy reflecting suppressed expectations, perceptions and realities.
EXTERNAL INFLUENCES
The prospects for reductions in interest rates and offers of bargains, discounts and specials were countered by the cessation of government subsides and concessions on power, energy and utility costs. Cah-flows and personal liquidity were the key determinants and drivers on buying intentions and actualities.
PERSPECTIVE
In essence, transactions are functions of NOW forces. The future and past are secondary considerations. In short, expectations and past experiences count for little in many present buying cycles.
Those are salient reference points for all business leaders, marketers, advertising professionals, merchandising experts and communications consultants.
Forward planning and marketplace stimulations will be best deployed by inducing immediate purchasing and consumption.
CAREFUL – WHAT YOU ASK
Some may be reassured by the publication of research findings.
Beware research that contend consumers intend to spend specific amounts on planned purchases during seasonal and annual trading periods. Likewise, with references to budgets and payment options.
Overwhelmingly, a significant percentage of adult Australians are not disciplined. At best they have undocumented and uncommitted guestimates.
Words matter. Researchers need to be careful in the wording of questions. Many consumers are gracious and try to be obliging. Therefore, where the intent of the question or questions is apparent, they will provide answers that they think is being expected of them. That is why questionnaires are constructed and conducted to substantiate hypotheses. They have questionable validity or accuracy. Misleading findings inevitably lead businesses to nowhere.
THE FUTURE
The future has arrived. Enjoy it and capitalise now.
Barry Urquhart
Marketing Analyst
Marketing Focus
M: 041 983 5555
E: urquhart@marketingfocus.net.au