Shopify reveals what’s hot in Australian shopping this year

Australian consumers are bargain hunting more than ever before, and are also more likely to shop in person than they were last year, according to new research from Shopify.

It’s no wonder that, given the huge rise in the cost of living over the past few years, Australian consumers are looking for a better return on their investment. Research published by Shopify found that 79% of Australians are tightening their belts to save money. A third of respondents are pessimistic about the economy and its impact on their personal situation, and the number of people who prioritise best value has increased by 10% compared to 2023 data.

“More than half of consumers in the country look for the best deal when shopping
– whether it’s lower prices, higher product quality or other elements – driven by cost-of-living pressures, further increasing competition,” the report said.

A quarter of consumers still want to treat themselves from time to time, the report found, presenting an opportunity for retailers to attract customers with sales and discounts.

Mosaic Brands is Australia’s largest specialist apparel retail group, with 1,000 Noni B, RIver, Katies, Autograph and other stores. CEO Richard Facioni says that in 2024, retailers need to show shoppers that what they buy has value.

“We’ve found that when they get something they want or desire, they find the money to buy it. The money is there, but they’re more selective.”

Richard Facioni, president, Mosaic Brands.

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“Retailers will focus on both online and offline sales”

Perhaps the most unexpected takeaway from Shopify’s report is the discovery that consumers are increasingly making omnichannel purchases—meaning a return to shopping in brick-and-mortar stores, as well as continuing to shop on e-commerce sites and social media platforms.

43% of respondents said they prefer to shop in-store, up 5% from last year. Only 31% said they prefer to shop online. Consumers want multiple touchpoints with a retailer.

“With more than a quarter (26%) of consumers enjoying shopping both in-store and online, retailers need to focus on both online and offline channels to meet shopper needs,” the report said.

Not only does it give shoppers options to make their shopping experience as convenient as possible, but it also gives retailers more data to analyze. Shaun Broughton is the Managing Director of Shopify, APAC.

“Unified commerce will be a compelling growth driver, enabling retailers to sell better across channels while delivering the best customer experiences and accessing unified data sets to make the best business decisions,” says Broughton.

According to research, retailers’ top priority is to provide customers with the experience they expect, so they plan to innovate to achieve this goal.

“99% of Australian retailers surveyed plan to invest in customer experience in 2024, with those planning to do so investing an average of 11% of their total annual revenue. Almost all (99%) retailers also plan to invest in innovation, allocating an average of 18% of their total annual revenue,” the report says.

Loyalty at stake

Research reveals that to be loyal to a brand, shoppers want consistently low prices, a loyalty program, and high-quality goods. The vast majority (92%) of respondents said they would be loyal to a brand if it offered them “something” beyond the product.

Paying for shipping costs is the most important deciding factor for online shoppers, with 60% of respondents saying free shipping is a must. Consumers also want to experience the same high level of customer service when using e-commerce channels.

Omni-channel retailer Brand Collective sells Reebok, Review, Superdry and Lonsdale products in Australia.

“Customer expectations for service quality have increased dramatically,” says Aaron Gard, head of digital and loyalty at Brand Collective.

“When it comes to customer service, customers intuitively feel that every brand should operate in an omni-channel manner and that they should receive the same high-quality online experience that they would receive in a traditional retail store.”

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