OUTLOOK
4 . Willingness to pay Sustainably marketed products are often overlooked as too expensive , especially with the perception of core functional benefit being compromised . The allure of sustainability rarely exists in isolation , even for the most ardent environmentalists . Other components must be in place . Addressing these four major barriers can help provide clear value to Australian shoppers and close the persistent “ value action gap ”.
Ethical and sustainably sourced ingredients Spirit brands have been one of the best responders to the sustainability sentiment and are using it to engage consumers . Patrón Tequila has sustainability as a key to its brand positioning – so much so that it is recognised as an industry leader in waste reduction and environmental consciousness , and rewarded with very strong sales (+ 38 per cent ). 41 Domestically , Antipodes Gin Co was Australia ’ s first certified organic and carbon neutral distillery , generating nearly $ 2 million . Despite being a small craft distillery from Canberra , Antipodes is increasing distribution across Coles Group at + 16 per cent . 42 And the shift in liquor is expected to move towards “ climate positive ” products , for example Arbikie ’ s Nàdar Gin showcasing innovative pea-based gin .
Consumers will demand transparency of sustainability initiatives from brands Half of Australians stopped buying certain products and services “ because of their impact on the environment or society ” ( 46 per cent ) and are “ prepared to invest time and money to support companies that try to do good ” ( 48 per cent ) while about two in five ( 37 per cent ) actively seek out brands that offer ways to offset impact on the environment . A sustainability mindset influences grocery spend allocation ; however , there is a clear , ongoing need to close the gap between intent and action . Ultimately , nearly three-quarters of Australians ( 72 per cent ) are willing to pay a price premium for brands with sustainability practices 43 and with the focus firmly back on climate change on the back of the COP26 UN Climate Change Conference and other initiatives , the power of the planet will be more important than ever as the focus moves away from the pandemic . The question to answer is , what is your brand or business doing about it ? •
Range Address choice barriers when making ranging decisions to be more sustainable , with visual nudges to guide shoppers towards more sustainable products .
• Innovate extensions and new lines to make positive action easier for shoppers
• Use curation and transparency to nudge shoppers into action
• Improve choice approachability via accessible and leading prices Reassure Take steps to convey your sustainability virtues wherever you have them , as 85 % of Australians want retailers and brands to be more transparent about provenance , product sustainability , and ethical practices of producers . 46
• Share stories about what ’ s being done to support sustainability
• Reinforce local contributions regardless of brand origin
• Develop measure of basket or brand portfolios ’ sustainability Representation Help tackle social inequality and exclusions by elevating focus on diversity equity and inclusion for positive social change .
• Celebrate Australia ’ s many diverse and thriving cohorts
• Be an enabler for marginalised members of society
• Champion better standards for your industry , including supply chain
THE FUTURE IS OMNI
Omnichannel expectations are higher than ever , and getting the right balance between physical and digital is key .
Covid-19 continues to change and influence how we live and shop . With near limitless access to almost everything , shoppers enjoy a new and alwaysevolving retail landscape . Yet as pandemic effects expedite the emergence of new ways of shopping , we expect experiences to align , no matter the channel or retailer . In fact , almost two-thirds of Australians ( 64 per cent ) who shopped online over the three months to September 2021 did so on the websites of retailers with physical shops . 48
Capitalising on the pandemic shift It ’ s no secret that Covid-19 impacted behaviours and expectations . As technology is integrated into our daily lives more than ever ; digital , and mobile platforms create new shopper journeys and transform decisions . Shoppers ’ new digital habits will force e-commerce and traditional retail to reconsider the post-pandemic environment . Don ’ t forget that our values – tested throughout the last two years – are also influencing shopping behaviours . More than half ( 54 per cent ) of Australians are willing to pay for shipping and two-thirds ( 66 per cent ) higher prices to support small business . 49
New omnichannel shopping habits are here to stay Getting omnichannel right is key to capitalising on Australia ’ s pandemic shift . We continue to flock online 50 and use e-commerce to meet our needs and optimise search-to-win purchases . But be aware of the impending demise of thirdparty digital cookies . Put more emphasis on firstparty data to learn about your customers and save their shopping cart . With opt-out of tracking apps in place as well , it will be harder than ever to know where Australians are shopping and what they ’ re interested in . Your data – and knowing how to effectively use it – will be more valuable than ever .
Price and value remain a priority As many of us tighten the belt , price and value remain important . Australians are accustomed to using every channel at our disposal to shop safely , ascertain availability and get the best prices . More and more shoppers are going digital , which we expect to continue . Larger and more valuable basket sizes , and the ability to save a shopping list , should be front of mind in the shopper consideration . ‣