More Australians (44%) are changing their spending habits to beat the cost of living crunch, according to new insights from NAB. The report reveals that shoppers are spending more time researching brands and products before they make a purchase, demonstrating caution in their online shopping habits. Australians are increasingly loyal to their trusted favorites and are less likely to try new websites or retailers.
NAB Economics’ latest Consumer Sentiment report highlights the shifting consumer behavior in response to the rising cost of living and the prevalence of online scams. Almost half of Australian shoppers (44%) are making changes to their spending habits in order to save money and resist the temptation to splurge.
Paul Riley, NAB Personal Banking Executive, commended consumers for taking steps to ensure they get the most out of their money. While online retail sales continue to increase, more people are opting for less expensive brands (36%) and spending more time researching before making a purchase (23%), said Riley.
The data indicates a growing loyalty to established brands, with consumers prioritizing trusted products and retailers. Compared to the previous year, there has been a significant decline in the number of consumers shopping on new websites (-7%), trying new retailers (-7%), or experimenting with new products (-5%).
This loyalty to trusted brands not only reflects a desire for value for money but also demonstrates an increased awareness of online scams. Riley noted that people are becoming more adept at identifying the warning signs of retail scams, such as unrealistically low prices or websites that lack trusted online payment methods like PayPal. Consequently, consumers are now more cautious about trying new websites or products, opting to reduce their risk of falling victim to scams by sticking to familiar options.
In addition to their cautious approach, customers are also utilizing spending insights provided by NAB’s app and Internet Banking to keep a closer eye on their finances and make their money go further.
The findings from NAB’s report shed light on a growing trend among Australians to exercise caution when it comes to online shopping. By prioritizing research and loyalty to trusted brands, consumers are mitigating the risks associated with online scams while striving to cope with the rising cost of living.
While this cautious approach may limit the growth potential for new websites and retailers, it is a testament to consumers’ desire for security and value for money. By staying informed and aware, Australian shoppers are navigating the online shopping landscape with greater confidence and making informed decisions about where and how they spend their hard-earned money.
