Australians are optimistic when it comes to COVID-19 recovery, with less people saying it will have a big impact on their personal finances, and most expecting a delay in purchases until the pandemic is over.
The new study from Audience Precision, ‘COVID-19 – Marketers Action Plan’ looks at trends spanning the generations from Generation Z to Boomers, and also across the top 25% household income band.
Gen Z are the most ready to spend up big as soon as the pandemic is over in Australia but have delayed their purchases until then, while Boomers are not delaying purchases to any significant degree. Millennials are the most cautious, becoming the ‘wait and see’ generation.
All generations, however, are less concerned and more optimistic about COVID-19 than the UK and US.
Gen Z is the least concerned, along with Boomers, who also have the highest levels of optimism.
Millennials have the lowest level of optimism, with 40% saying COVID-19 will have a major impact on their personal finances, the highest of all generations. Gen X were the second highest generation group to say COVID-19 will have a major impact on their personal finances (38%), and 36% of Boomers believe the same.
“These are very encouraging signs for marketers, and this further highlights the need to be ready to accommodate a surge in expenditure,” says Audience Precision Head of Business Development, John La Rosa.
“It’s important to start to brand build now to ensure awareness is achieved prior to full pre-COVID-19 conditions. Marketers need to have agile and quickly executable strategies ready for further signs of speedy recovery.”
Mr La Rosa emphasises that, “Having a deep understanding of what your consumers’ wants and needs are will drive repeat purchase and build longer term brand loyalty, as we know that they will choose brands based on past experiences.”
When asked which purchases the generations were willing to delay, it was noted:
Gen Z: technology items, luxury items, clothes, flights and concert tickets.
Millennials: cars, home appliances, clothes, tickets to events, luxury items.
Gen X: day to day items, vacations, concert tickets, cars, home furnishings, technology and smart phone.
Boomers: day to day items, vacations, flights, sporting events, concert tickets.
Among the top 25% income band, holidays, flights, cars, luxury items and home appliances were the top 5 categories that were most likely to be delayed.
Purchase category priorities post COVID-19
In terms of higher priced items, the top 5 categories that each generation and top income band will buy first are:
Gen Z: clothes, smartphone, home appliances, luxury goods and smart devices.
Millennials: clothes, technology, smartphone, home furnishings and smart devices.
Gen X: clothes, home appliances, home furnishings, technology, and smartphone.
Boomers: home appliances, clothes, home, furnishings, technology and smartphone.
Top 25% income band: clothes, home appliances, technology, home furnishings and smartphone.