The Consumer Divide

NIQ’s 2024 Australia Consumer Outlook Report looks at two core consumer groups - ‘Strugglers’ and ‘Cautious’. Although Strugglers and Cautious are both careful with their spending, there are significant differences in their profiles and strategies to win within these consumers.

Personalise your approach to providing value to key consumer segments. Consumers are under pressure. Unemployment rates remain steady, but wages continue to lag behind inflation rates. As factors like global crises (and conflict escalation) rise to consumer consciousness, expect heightened competition for a smaller pie of consumer spending.

Significant external factors, most of which are beyond our control, contribute relentlessly to our FMCG industry. Therefore, it begs the question of how manufacturers and retailers can best prepare for these inevitable challenges and be equipped and agile to respond?

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Although Strugglers and Cautious are careful with their spending, there are significant differences in their profiles and strategies to win within these consumers.

Strugglers

66% only have enough money for food, shelter and basics
23% are employed full time (vs 39% of the panel)
34% are likely to change jobs (vs 20% of the panel)
Are 30% more likely to be renting

There top 3 Strategies to Manage Expenses:

Stop buying certain products (59%)
Shop at stores with loyalty points (55%)
Monitor the cost of my overall basked of goods (53%)

Cautious

74% live comfortably and are able to buy certain things just because they want them
42% are employed full time (vs 39% of the panel) and 27% are retired (vs 24% of the panel)
59% are unlikely to change jobs (vs 57% of the panel)

There top 3 Strategies to Manage Expenses:

Shop at stores with loyalty points (53%)
Buy whatever brand is on promotion (47%)
Select lowest priced product from preferred range (44%)