Has the Pandemic Changed the Way Australians Spend and Live?
The pandemic has changed lots of things. One example is relationships. If you’re like most people, you no longer take time with family for granted. Before the pandemic, Sunday afternoon meals around the table with extended family were a normal occurrence. Suddenly, it wasn’t possible, causing us to miss these simple events.
Read More: Out with the Old, In with the Virtual: The Shift to Virtual Events
The pandemic has also changed the way that Australians spend their money. Of course, physical stores were closed. Even when they reopened, many consumers wanted to order online rather than visit a store with dozens of other people (and potentially expose themselves to the virus).
But, has the pandemic changed the way that Australians spend and live? Or has everything returned to normal now that the number of people vaccinated against the virus has grown? Will the pandemic-induced behaviors remain?
Spending
First, we want to look at online shopping since this experienced a huge surge during the pandemic. As noted, the closure of physical stores meant that consumers had no option but to get products delivered to their doors. For example, this included the necessities like groceries. Even though supermarkets remained open for food, millions of consumers in Australia were nervous about the virus and preferred to get groceries delivered.
As well as necessities, it also included entertainment and luxury items. For instance, people were stuck at home with their families for extended periods. Parents took to Amazon and similar platforms to order products to keep the family entertained. For the first time in many years, stores ran out of jigsaw puzzles and board games. What’s more, electronic items like the Nintendo Switch flew off the shelf.
However, even as the COVID-19 pandemic starts to fade away in Australia, it seems as though these forced online purchases have now become a habit. Take groceries, for example, consumers suddenly recognized the convenience of having food shopping delivered to the door. As life gets busier and people return to work, why visit the physical store when you can have food delivered at a convenient time?
According to one NAB study at the end of 2020, 25% of people admitted to purchasing a product online that they would have bought in a brick-and-mortar store before the pandemic. Back in 2019, traditional retailers were worried about the threat from online retailers, and the pandemic seems to have expedited the transition.
Not only are people shopping online more frequently, but they’re also demanding better experiences (both online and in the physical world). If your website is lacking, users won’t think twice about clicking away. Consumers are informed these days, and they’re aware of their options. If you want to sell products, you need to accommodate them and offer an excellent experience.
According to the consumer anxiety index from NAB, the number is falling. As 2021 progresses, Australian consumers are returning to some form of normality with their anxiety. Yet, this doesn’t mean that the habits built during the pandemic will disappear immediately. In 2020 alone, Australians spent 44% more money on online retail compared to 2019 (over $44 billion).
People will tell you that the move to digital experiences was caused by the pandemic, but there’s a wider story to tell here. Yes, the pandemic may have caused more people to shop online. However, it simply quickened the pace of a transition that was already underway. Even before the pandemic, more and more consumers were choosing to order products from the comfort of their own homes.
The modern-day consumer is cautious, sophisticated, informed, and demanding. Although anxiety fell towards the beginning of 2021, it’s still high in certain age groups. For example, men between 18 and 30 were the highest category when it came to anxiety in December 2020. Unfortunately, a lack of job security meant tighter control over the purse strings, and this remains true later in 2021.
In terms of permanent changes after the pandemic, online shopping is going to be one of the most prevalent. Especially for those who avoided online shopping before, they’re just discovering the marvel of having products delivered to their door. Elsewhere, experts expect Australians to take staycations rather than traveling abroad. Also, fewer people will travel on public transport, footfall in shopping centers will continue to fall, and more intense handwashing will stick around.
With all of this in mind, it’s not hard to say that the pandemic has changed the way Australians spend and live.
Living
As we’re all aware, the pandemic has also led to certain lifestyle changes. In a recent Tremor International survey with 3,000 participants, around half believed that they now spend more time online than before the pandemic. In 2019, some experts were questioning whether the time spent online had peaked…it turns out we weren’t even close to the ceiling.
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Though some areas are still experiencing lockdowns to control the spread of the virus, many locations are also entering the next stage of recovery after the pandemic. Despite relaxation in many restrictions, Australians are still adhering to many of the old rules whether social distancing, wearing a mask, or others. Consequently, consumers believe that brands should advertise to them differently.
In one survey, around half of respondents wanted more informed marketing materials from brands. As well as wanting to know how the brand protected customers, they also wanted to know how the company looked after employees. Elsewhere, one in five people wanted positive and entertaining content as an escape from all the negativity surrounding the virus. Interestingly, 15% wanted companies to change nothing as it provides a sense of normality among the new conditions.
While consumers in the US and UK are turning to comedies and dramas during the pandemic, Australians are watching the news instead. Additionally, social media usage is up for those under the age of 45.
Predicted Trends in 2021 and Beyond
You’ve seen how the pandemic has changed the way that Australians spend and live, but what trends can you expect in the coming months? How do you apply this knowledge to your business and marketing strategy?
Working from Home
The pandemic might have forced companies into sending their employees home, but they realized that it wasn’t a terrible proposition for the business. Suddenly, employees were productive, happy, and everything worked smoothly. As time goes on, experts expect businesses to keep workers at home, move to smaller offices, and operate like this for the foreseeable future.
While a few businesses will keep all employees at home, the more likely solution is a split schedule with half the team at home on some days and half the team at home on others. Either way, businesses can save money with a smaller office and fewer overheads. Tools like Zoom allow employees to communicate effectively and maintain a positive user experience.
Read More: How Your Business Can Support WFH Employees
Before COVID, 27% of the national workforce worked at least one day a week at home. An L.E.K survey suggests that this will increase to over 40% after the pandemic.
Green Space Usage
Next, Australians are known for their use of green space, but this has grown even more since the pandemic. Nothing makes you appreciate nature and public parks like a pandemic forcing you inside. The NSW Department of Planning, Industry, and Environment recently found that nearly half of all people now spend more time in gardens and parks. While the Centennial Park welcomed 100% more guests, the Western Sydney Parklands enjoyed 144% more visitors compared to one year earlier.
Read More: Top Health and Wellness Brands 2021
More Regional Living
As more workers are allowed to work from home, they can find their dream home in the coastal regional areas rather than being forced to live close to their workplace in the city. Capital city residential vacancies are on the rise while demand for coastal properties is growing. In the second half of 2020 alone, migration from major cities grew by 200%.
Energy Demands and Waste
We’ve seen that more people are working from home, and this means an increase in energy demands. While commercial energy usage plummets, residential energy usage continues to rise. With this in mind, it has led to homeowners thinking about solar installations and other efficiency measures.
Sadly, the trends mentioned in this guide have also led to more wastage than Australia has seen in some years. For 15 years, various government initiatives and changes in behavior allowed the per capita municipal waste to reduce, but it increased by 20% in 2020. The waste sector has many challenges ahead, including the ban on sending low-grade recyclable materials to China and other countries.
Read More: The Dos and Don’ts of Sustainable Marketing
Conclusion
Yes, the pandemic has changed the way Australians spend and live. As a business, you need to adapt to their changing needs. For example, an advanced delivery service will meet their need for online shopping. Evolution is the key to success in 2021 where the environment continually changes!
