Newly minted online buying habits are proving sticky, consumer spending will rebound quickly, and working from home is here to stay.
These are some of the lessons the rest of the world can learn from Australia, according to management consultants Bain and Company, which says that Australia, which has largely controlled the Covid-19 spread, offers insights into how consumer habits are changing in a post-pandemic landscape.
The insights are contained in an online paper called What Retailers Can Learn from Australia about the Post-Covid Consumer
The shift to online grocery – long the ecommerce hold out – seems to be one of the key changes. This is consistent with the results of the analysis we and Stocard did on their customer data yesterday.
As we reported, the data suggests that consumers are feeling safe enough to return back to stores and consumer spending is on the rise.
As Stocard ANZ managing director Radinck van Vollenhoven noted “Our data shows that every category is now performing better than before the pandemic. Most notably, weekly in-store fashion and clothing purchases were up 103 per cent during the recovery phase and now stand at 40 per cent in the new normal.”
The Bain data meanwhile confirms that necessity in this case really did prove the mother of reinvention, as the Bain study actually found many consumers had poor e-grocery experiences but nonetheless, they persisted.
As the Bain paper notes, “Even though 54 of those who tried to buy groceries online failed at least once during Covid-19, digital still delivers higher customer satisfaction.”
Take heed of the message consumers are sending, and innovate, say the authors. “As consumption patterns shift to prior norms, companies must innovate their offerings to capitalize and take market share while it is there to be taken”
There are clear lessons for innovators say the authors Yngve Andresen, Melanie Sanders and James Brooks. “Reinvent your consumer value proposition for the new retail landscape. revisit your asset base and make online channels profitable and shed complexity in anything and everything,” say the authors.
They also advise retailers to take advantage of scale and unique assets to create a retail ecosystem and to maintain the new pace of innovation and decision-making.