Australians are starting their festive shopping increasingly early, with most planning to finalise their shopping lists by October (53%) and do the bulk of their shopping by November (58%), new research from Shopify has revealed.
This trend is more pronounced for Australians with children living at home, with 70% finalising lists by October and 68% having done the bulk of their shopping by the end of November.
One in two (49%) Australian consumers intend to do the majority of their holiday shopping across the Black Friday and Cyber Monday weekend (29 November to 2 December). More than half (56%) plan to set a ‘clear’ spending budget, however 36% of Australians say they usually exceed their festive shopping budget.
The biggest spenders this year project to be people that ‘cherish’ the festive shopping season, comprising 9% of respondents. In second place, people with children living at home, who project to spend more than twice as much as those with no kids or with kids that live out of home. A small minority (10%) who ‘can’t stand’ the holiday season are projected to be the lowest spenders.
Australian Retailers Association CEO, Paul Zahra said, “The ongoing hit to discretionary spending means consumers are being extremely strategic with their dollars, a reality reflected both at the till and in Shopify’s data.
“Many discretionary retailers make the majority of their profits during the festive shopping season, but this evolution in consumer habits means they need to adapt how and when they prepare for an earlier gift purchasing period, accommodating customers who are searching for the best deals much earlier.”
Communicating deals to customers earlier helps retailers reach busy shoppers. While 39% of Australians have signed up to brand updates to get the best deals this BFCM, this flips to a majority for those looking to spend more than $430 (65%), young people 25 to 34 (57%), and parents with kids living at home (56%).
Shopify managing director for Asia Pacific and Japan, Shaun Broughton said, “Merchants need to strategise around a longer sales season, as consumer behaviour shifts towards conscientious planning and away from spontaneity.
“We’ve observed that Australians planning to do the majority of their shopping online tend to start the process earlier than those planning to do it in store. Understanding when certain types of consumers will be planning and shopping can help retailers decide how to best communicate with their customers, manage operations and plan merchandising to maximise the festive shopping opportunity.”
Nearly one-third (31%) of Australian shoppers are exclusively shopping for items at a reduced price or with a discount code. Sales and offers are highly valued, with 45% feeling satisfied with their ability to take advantage of deals, and 27% feeling they can buy higher quality items thanks to sales.
A hybrid approach to shopping is popular, with 63% buying small things online but going into stores for larger purchases. With 66% also searching for items online and then going in-store to get them, it demonstrates the need for Australian businesses to ensure a unified and consistent offering across commerce channels.