Half of Aussie consumers will spend more during Black Friday Cyber Monday sales despite concerns over the cost of living, with quality and value set to rule spending decisions, new research from Shopify has revealed.
Ahead of the 2022 Black Friday Cyber Monday (BFCM) weekend — an event that last year saw more than 47 million shoppers buying from brands powered by Shopify in 2021 — Shopify surveyed 4,000 consumers and 500 businesses across Australia and New Zealand (ANZ) to learn how cost-of-living spikes will influence spending habits and retailers over the holidays.
Despite the gloomy economic outlook, retailers are optimistic about consumer spending, with 72% saying they are planning a “big Black Friday Cyber Monday (BFCM)” to kick start holiday season shopping, with 78% of retailers saying there will be better deals available to customers compared to last year’s BFCM.
“This year, we can clearly see a shift towards more considered spending, as many Aussies prioritise value for money — in terms of quality and cost savings — as inflation and interest rates bite,” said Shaun Broughton, APAC Managing Director at Shopify. “Despite gloomy economic conditions, consumers are setting aside extra money for holiday spending, which presents an opportunity for retailers offering quality products and smart incentives to accelerate growth.”
“With the cost of living continuing to rise, we’ve noticed a shift in the way our customers are shopping,” said Zhoe Low, General Manager at Australian luggage brand, July. “We quickly realised that our customers are planning trips in advance and shopping earlier than usual, most likely to take advantage of peak sales times. To accommodate and react to this trend in pre-holiday prep, we are distributing gifting messaging sooner as well as being much clearer with our shipping timeframes.”
The findings reveal:
As bills bite, consumers drop disposable spending but are saving more to maximise Black Friday shopping
- Over a third (36%) of Australian consumers are cautious about spending in the current economic environment, and more than three quarters (75%) say they have reduced their disposable spending in the past couple of months.
- Despite this, Black Friday Cyber Monday and holiday season sales are a bright spot for consumers, with half (52%) putting more money aside for the holiday season than they have done previously this year, and over a third (40%) intending to spend more this Black Friday / Cyber Monday before the real pinch of price hikes kick in.
- Retailers are also optimistic, with (72%) saying they are planning a “big Black Friday Cyber Monday (BFCM)” to kick start holiday season shopping, and 78% saying there will be better deals available to customers compared to last year’s BFCM.
Shoppers are looking more carefully for value that lasts, but open to monthly treats to spark joy
- Quality and value rule consumer spending, with two-thirds (69%) of consumers looking to spend money on higher quality products that last to make their money stretch further and 64% more likely to shop during BFCM to get more bang for their buck.
- And, two thirds (68%) of consumers say they’re likely to treat themselves about once a month (68%), and two-thirds (69%) are looking to spend money on smaller purchases that bring them joy amidst the uncertainty.
Considered bargain hunting a foundational shopping behaviour
- Price rules right now, and as a result, loyalty is up for grabs. Australian shoppers ranked higher than the global average (74%, versus 65% globally) saying that cost savings would convince them to switch to a rival brand’s product.
- And, almost all (84%) are making more considered purchases by comparing prices to see where the best discounts are and more than a quarter (26%) are considering whether they really need something before committing to buy.
- The good news is that 78% of businesses in the region think better deals will be available to customers compared to last year’s BFCM season. Cost conscious shoppers will be able to take advantage.
About the study Online survey conducted by Sapio Research, on behalf of Shopify, among 24,009 consumers and 9,012 businesses (under 1,000 employees) across the UK, France, Germany, Spain, Italy, Netherlands, Sweden, Australia, New Zealand, Japan, US and Canada. The survey took place between September and October 2022