Save
‘A marathon not a sprint’ means Aussies are holding back
More cautious spending habits are already translating to long-term conservative attitudes when it comes to money, a new study has found.
‘A marathon not a sprint’ means Aussies are holding back
More cautious spending habits are already translating to long-term conservative attitudes when it comes to money, a new study has found.
McKinsey & Company has conducted research that identified distinct Australian consumer segments as emerging out of the COVID-19 crisis, while also revealing a strong intent to pull back spending from “almost all” types of consumers.
Titled Australia’s next normal: The cautious consumer, the analysis found that price consciousness is on the rise in Australia, with just-in-time consumption to be depressed for some time.
In addition, McKinsey & Company expects spending capacity to continually be “radically and unpredictably affected as government support is progressively wound back”.
Far from a passing phenomenon, the cautious consumer is “here to stay”, according to McKinsey & Company leader consumer packaged goods and retail practices Australia and New Zealand, Jenny Child.
“Concern over the health of our finances is having an impact on sentiment, which will deepen and broaden over the rest of the year, as lagging economic effects from lockdown impact more individuals and households,” she said.
Since April, six in 10 Australians (approximately 60 per cent) of individuals surveyed in McKinsey’s consumer insight surveys reported being “very” or “extremely concerned” about the economy.
It has maintained its status as the top concern ever since.
According to Ms Child, it’s because Australians are realising that battling COVID-19 “will be a marathon not a sprint”.
“Longstanding recession behaviours such as frugality, reuse and shifts to promotional hunting and discount channel shopping are on the rise,” the leader observed.
About the author
About the author
Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. ...Read more
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Expenses
Price no longer the prime factor for energy bills
Many Australians are intrigued but unconvinced when it comes to greening their energy bill. ...Read more
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
