Two-thirds of Australians are planning to take advantage of sales during Black Friday Cyber Monday (BFCM) despite cutting discretionary spending in recent months, new research from Shopify has revealed. A third of Australian holiday shoppers plan to spend between $170-$430.
- As shoppers grapple with the high cost of living, 70% are more likely to shop during the BFCM weekend and upcoming peak sales moments to get more for their money.
- Despite a challenging economy, 63% of Australian shoppers plan to spend as much or more during the BFCM weekend this year compared to last year.
- Consumers are more intentional than ever as they look to make their money go further, with 53% planning to do the bulk of their holiday shopping during the BFCM weekend.
Black Friday Cyber Monday saw 52 million global shoppers spend $7.5 billion dollars with brands powered by Shopify last year. Ahead of this year’s event, Shopify surveyed 2,000 consumers and 350 businesses across Australia to learn what will motivate consumers and drive business performance over the upcoming holiday shopping period.
The study, conducted by Sapio Research, found that three-quarters (76%) of Australians have cut back on spending in recent months. Yet the vast majority of those who are planning to shop during BFCM (63%) intend to spend the same or more this year compared to last. In fact, the number of people planning to spend more (27%) is twice that of those who are planning to spend less (13%).
“Consumers are looking to make high-quality purchases that bring a sense of happiness or well being this year,” said Shaun Broughton, APAC Managing Director at Shopify. “While Australians are concerned about the rising cost of living, 80% still value high quality products that last. Retailers who strike a balance between price and quality are best placed to maximise sales throughout BFCM and other peak shopping periods.”
The prospect of finding great deals is a strong motivator for consumers, with 70% saying they will shop over BFCM weekend to get more value for their money. Brand loyalty could take a back seat throughout the sales period, however, as 84% of consumers say they will compare prices to try and find the best deals and discounts possible.
“Customers are certainly being shrewder when parting with their money,” said Kelly Lavery, CEO, Strucket. “It’s up to us as retailers to validate the customer’s purchase as a need rather than a want, ensure that their purchase will make a positive impact on their life, and make them feel confident they spent with the right business. Essentially they are looking for value and trust.”
“Aussies respect retailers that offer regular discounts. Shopify’s research mirrors our own data, which shows that nine in ten respondents view those retailers as ‘value for money’ – a brand perception that is particularly important in today’s cost of living crisis,” said Matthew Herbert, Co-Founder and Co-CEO of brand tracking platform, Tracksuit.
“Retailers looking to capitalise on BFCM this year should remember that it’s not just transactional. By aligning your brand with the highly anticipated sales periods, you demonstrate empathy and support. It’s an opportunity to deliver value for money to consumers while boosting sales, and fostering longer term brand loyalty and trust. It’s a win-win scenario where both consumers and retailers stand to benefit.”
The research also revealed that technology has become a core part of the shopping experience — and there’s value in embracing technology for retailers as well. Close to 1 in 4 holiday shoppers are more likely to buy from brands with technology-enabled shopping experiences (24%). Another quarter expect brands to embed technology into the shopping experience (24%), while 23% are more likely to spend money with brands that offer tech-enabled shopping experiences.
In addition, consumers are excited about the possibilities that AI will bring as they hunt for the best deals this shopping season. More than two-thirds (69%) of shoppers believe AI will make it easier to discover new brands and products, while three-quarters (74%) believe it will help them find deals or special offers.
Interestingly, it is the biggest spenders who are most likely to adopt the latest shopping technology. Consumers planning to spend over $850 this BFCM, are also the most likely to make use of virtual fitting room services or smart mirrors (32%), use virtual assistants (31%), shop for things like furniture using spacial commerce (30%), and over a third (36%) engage with QR codes or digital display screens while shopping. In addition, big spenders are twice as likely to purchase products with personalisation, such as name monogramming, as those who are planning to spend the least.
Key findings from Shopify’s latest research also reveal:
Despite cutting discretionary spending, consumers are willing to pay for a great deal
- Consumers are more intentional than ever as they look to make their money go further, with 53% planning to do the bulk of their holiday shopping during the BFCM weekend.
- While 48% of shoppers still value quality, 67% are open to switching brands based on cost savings.
Retailers are looking to tech to help manage peak sales season
- To meet the demand for technology-driven shopping, 72% of Australian retailers surveyed said they plan to increase their investment in tech to prepare for the holiday sales season.
Online and offline commerce channels are both important
- Preferences towards browsing in a shop vs browsing on an online store are almost evenly split (42% vs 41%) as the top way for Australian consumers to make new product discoveries.
- More shoppers are open to making purchases through social media platforms, with nearly 37% willing to purchase products directly on Facebook, 35% willing to buy through Instagram, 31% willing to buy via YouTube, and 26% willing to buy via TikTok. Only 16% were willing to buy from X.
- Surprisingly, 25-34 year olds are the highest adopters of social shopping behaviours with 48% being willing to purchase products on Facebook, compared to 30% of Gen Z shoppers. In addition, 25-34 year olds were more likely than 18-24 year olds to message brands on social media platforms for customer support (26% vs 24%).
- Almost a third (30%) of businesses think that, out of all the available selling surfaces, social media platforms will provide the highest volume of sales for them by the end of the decade.
