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
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
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more
Expenses
The financial products giving Australians the most grief during COVID-19
The Australian Financial Complaints Authority (AFCA) has received 7,420 complaints about financial products since the onset of the pandemic. ...Read more
Expenses
Tips for managing your finances during a recession
When a recession hits, it’s natural to be concerned. After all, an economic recession can spell disaster for your financial welfare. ...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
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more
Expenses
The financial products giving Australians the most grief during COVID-19
The Australian Financial Complaints Authority (AFCA) has received 7,420 complaints about financial products since the onset of the pandemic. ...Read more
Expenses
Tips for managing your finances during a recession
When a recession hits, it’s natural to be concerned. After all, an economic recession can spell disaster for your financial welfare. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
