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Research confirms online shopping uptick but with increased consumer expectations of brands

2 September, 2021 | 
Pureprofile 

Posted at 8:46 am 

by Pureprofile 

Sydney, Australia, 2 September 2021

Local, sustainable and ethical brands predicted to be biggest winners
New research released today by IAB Australia and Pureprofile has found that marketers will need to shift gears into 2022 to ensure they provide satisfying omnichannel shopping experiences amidst escalating consumer expectations. The Australian Ecommerce Report 2021, which was conducted in June this year at a time when most of Australia was out of lockdown and people had resumed some of their pre-covid lifestyle, also flagged local, sustainable and ethical brands as the biggest winners in the year ahead, particularly for direct-to-consumer brand shoppers.
Based on research conducted with 1,000 Australian online shoppers examining the consumer attitudes, behaviours and influences driving ecommerce in Australia, the Australian Ecommerce Report 2021 found that there has been a fundamental shift in consumer shopping behaviour driven by COVID-19 and Australian retailers have adapted with investments in digital transformation that have resulted in extraordinary growth in ecommerce expenditure.  
The Report also found that while convenience was named by 76% of online shoppers as the biggest driver of online shopping and one that was worth paying a premium for, it’s no longer a strong differentiator for brands to simply be online and offer choice. Marketers will now need to ensure they are consistently reviewing the entire buying journey they offer their customers, from the research phase through to delivery of the goods purchased. 
While most shoppers during COVID in 2020 were not new to online shopping, 84% of those who increased online shopping during the pandemic have sustained this increase or purchased even more frequently so far in 2021. In June this year, 76% of online shoppers indicated they were buying online at least once a month.

Online search was identified as the most popular source by consumers for inspiration and discovering brands when buying something online, while social played a significant role for millennial shoppers – half indicating social media is now an important part of how they find products to buy. Retailer marketing channels were also found to play an important role in communicating to online shoppers, with 59% often reading content produced and distributed by retailers via retailer websites, emails, catalogues etc.
Gai Le Roy, CEO of IAB Australia commented: “It is no surprise that the pandemic has changed retail habits and sped up the adoption of ecommerce for brands and consumers, but we felt it was important to not only provide the market with industry data on shopping habits and future intentions but to explore drivers for brand selection, sources for inspiration and discovery. For a nation that has been in lockdown for most of the last 12 months, it seems like many of us have made comfortable additions to our wardrobe with clothing being the #1 shopping category with 72% of online shoppers making a clothing purchase online over the last year.”
Martin Filz, CEO of Pureprofile commented: “The great migration to online retail has accelerated during the COVID-19 pandemic, and this research suggests an evolution in how consumers are finding and connecting with brands. In an increasingly saturated online retail marketplace, consumers are seeking recommendations through search and social, looking for easily contactable customer service, and placing a premium on fast local delivery. To thrive in this new environment, marketers must adapt and upgrade the buyer journey to reflect these new shopper expectations and behaviours.”
Other research findings include:

  • 56% of direct brand shoppers and 39% of non-direct brand shoppers are more likely to buy from retailers who have behaved well during the pandemic. This presents an opportunity for all brands to authentically showcase their values and ethical credentials.  
  • 46% of online shoppers are now buying more things online from local retailers, presenting a clear opportunity for brands to develop a sense of community and connection.  
    • Ethical and sustainable propositions resonate more strongly with direct-to-consumer brand shoppers, with some 54% of direct brand shoppers preferring to buy from brands they know are sustainable (compared to 38% of non-direct brand shoppers).
  • Direct brands should amplify communication of brand proof points over hygiene factors 
    • Value for money has increased as a compelling reason for choosing direct brands this year, however other hygiene factors such as being simple to buy and having quick and easy returns are not distinguishing direct brands as much as they did last year.
    • Brand proof points such as innovation, personalisation, socially responsible, environmentally friendly and Australian owned have become more compelling reasons for purchasing a direct brand.
  • Shopper rewards programs are popular with online shoppers, but trust and increased transparency are needed
    • 9 in 10 online shoppers signed up to at least 1 shopper rewards program and amongst these 45% are signed up to 4 or more cards.
    • 54% of online shoppers have at least some concerns regarding how retailers use the data about them provided via the loyalty program or reward card, but concerns are reduced when consumers have a high level of trust with an individual retailer.  
    • Most loyalty card holders understand retailers use their data to target advertising and market products to them but nearly a third (30%) lacked knowledge on whether their data was provided to other companies.

– ENDS-

About the Interactive Advertising Bureau
As an independent industry association with more than 150 members in Australia and nearly 9,000 globally spanning media owners, publishers, technology companies, agencies and advertisers, IAB works to align industry stakeholders to develop solutions for the issues faced by the market and develop standards that are integral to the operation of digital advertising.
IAB Australia also works closely with other industry associations including MFA and AANA to help shape the rules of play around measurement, Australian Digital Ad Practices, mentorship, global tech and policy work, Tech Lab standards, standardising terminology and supporting the broad media and marketing community.
www.iabaustralia.com.au 
About Pureprofile
Pureprofile’s vision is to deliver more value from the world’s information.
We are a global data and insights organisation providing online research and digital advertising services for agencies, marketers, researchers and publishers.
Our research division delivers rich insights into real human behaviour and provides the “Why” behind the “What” through ResTech and SaaS solutions. Our digital advertising division taps into these rich insights on behalf of advertisers and publishers and executes impactful, targeted digital marketing strategies.
We build in-depth profiles of consumers via our proprietary and partner panels and give businesses the ability to understand, target, and ultimately engage with their audiences.
The Company, founded in 2000 and based in Surry Hills, Australia, now operates in North America, Europe and APAC and has delivered solutions for over 700 clients.
For further information please contact:
Gai Le Roy
CEO – IAB Australia
T: 0408 431 455
E: gai@iabaustralia.com.au
Pru Quinlan
Einsteinz Communications for IAB Australia
T: 0405 100 585
E: pru@einsteinz.com.au 

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