Environmental, sustainable, ethical and organic. These well-known words have become a more common contender in consumers choices during their buying experience.
While these words are multi-faceted, we found in recent research that Australians are increasingly prioritising sustainability and ethical practices when making purchasing decisions. The future consumer is reshaping the retail landscape, calling for accountability in their operations.
A recent study commissioned by QIC Real Estate revealed that more than half of Australians (54%) exclusively support brands that are transparent about their supply chains. Consumers are no longer satisfied with merely purchasing products but are seeking to understand the origins and production process behind their chosen brands. Transparency is becoming an essential factor for today’s consumer.
Awareness of Shopping Choices
Australians are becoming increasingly conscious of the impact of their purchasing decisions. Almost two in three (63%) report being more aware of the effects of their purchases compared to a year ago. This trend is particularly prominent amongst younger generations, with 74% of Gen Z expressing heightened awareness of their buying impacts (compared to 69% Gen Y, 60% Gen X and 50% Baby Boomers). This collective shift reflects the desire for consumers to align their consumption with their values and leverage their purchasing power for positive change.
The Importance of Product Origins
Clarity of the origin and production of products holds significant weight for Australians with 53% stating that they are more likely to shop at stores that provide transparent information in these specific areas. The desire for information stems from a growing appetite for responsible consumption. Consumers are looking to make informed choices that align with their values and support brands that uphold ethical and sustainable practices.
Not Just About Price
While more than four in five Australians (85%) see the price of a product as an extremely/very important factor in the buying experience, it is not just the price tag influencing purchasing decisions. Three in five Australians (61%) see the authenticity of the brand as important, as well as buying from a brand that aligns with their personal values (41%).
An identical proportion (41%) also consider the environmental credentials of the brand or product to be important in their buying experience.
Australians are looking beyond the cost of a product and reshaping how they purchase goods. This shift encompasses much more than the item; it now also includes the product and brands ethos, as well as the operations and processes, which encourages businesses to be authentic and transparent to their customers.
The Future Consumer
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Article supplied with thanks to McCrindle.
About the Author: McCrindle are a team of researchers and communications specialists who discover insights, and tell the story of Australians – what we do, and who we are.
Feature image: Photo by Franki Chamaki on Unsplash