CONSUMER BEHAVIOR – AUSTRALIA

Decline in proportion of Australians drinking alcohol

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Original article by Roy Morgan
Market Research Update – Page: Online : 7-Feb-19

New research from Roy Morgan shows that 67.9% of Australians aged 18+ consume at least one type of alcoholic drink in an average four-week period, compared with 70.1% in 2013. Wine is now consumed by 43.3% of Australians, ahead of beer (38.4%) and spirits (26.7%). Cider is now consumed by 12.3% of Australians, up from 10.3% five years ago, making it the only type to increase. Cider is now more popular than RTD (11.4%), Liqueurs (7.2%) and Fortified Wine (5.2%). Roy Morgan’s ‘Alcohol Consumption Currency Report September 2018’ is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including detailed questioning of over 15,000 regarding their alcoholic drinking habits.

CORPORATES
ROY MORGAN LIMITED

Housing bust, lower wages hit retail sales

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Original article by David Uren
The Australian – Page: 2 : 6-Feb-19

Data from the Australian Bureau of Statistics shows that retail sales fell by 0.4 per cent in December, while sales grew by just 0.1 per cent in the December quarter. The figures also show that Western Australia is the only state that did not experience a decline in retail sales during December. Gareth Aird of the Commonwealth Bank says consumer spending is being affected by the downturn in the housing market. He notes that this is particular evident in New South Wales, where house prices have fallen the most and retail sales were down 1.1 per cent in the December quarter.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA

Declining intentions to take out health insurance

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Original article by Roy Morgan
Market Research Update – Page: Online : 29-Jan-19

The latest Roy Morgan ‘Private Health Insurance Intender Profile Report’ September 2018 shows that 1.31 million Australians who currently do not have private health insurance intend to take it out over the next 12 months. This represents the lowest number over the last five years and is down by 17.1% (from 1.58 million) from the intention level over the same period 12 months ago. In order to improve the chances of converting health insurance intenders to fund members there is a need to understand in-depth who they are and what drives them. Intenders are dominated by the under-35 age groups with 55.4%. The 14-to-24 segment is the largest group with 28.4%, followed by the 25-to-34 year olds with 27.0%. Both of these age groups are well over-represented compared to their overall population share.

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ROY MORGAN LIMITED

Why have private health insurance?

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Original article by Roy Morgan
Market Research Update – Page: Online : 29-Jan-19

New research by Roy Morgan shows that 70.9% of Australians aged 14+ with health insurance agree that ‘above all else, private health insurance is about knowing that you will be able to cover the cost of big medical expenses if they arise’. This has declined from 77.5% over the past four years, but it remains the top priority for fund members. The number of people who agree that ‘health insurance gives me peace of mind’ has fallen from 74.5% to 68.1% over the last four years. The biggest drop in agreement over the last four years was for ‘it is essential to have private health insurance’, which has declined by 10.0% points to 56.2%. Roy Morgan’s Single Source Survey is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including detailed questioning of over 8,000 with members of health insurance funds.

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ROY MORGAN LIMITED

Majority of Australians now use digital payments – a potential threat or opportunity?

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Original article by Roy Morgan
Market Research Update – Page: Online : 23-Jan-19

New research by Roy Morgan shows that awareness of digital payments among Australians aged 14+ has reached 93.9%, and 72.4% have used at least one digital payment method over an average 12 months. The survey also shows that 7.2% of Australians have used ‘buy now, pay later’ systems such as Afterpay in the last 12 months, while 6.8% have used fintechs such as Android Pay and Google Wallet. Banks’ own mobile payments systems were used by 5.8% of Australians over this period. Meanwhile, 59.1% used bill payment services and 33.9% used online payment platforms such as PayPal. Roy Morgan’s ‘Digital Payment Solutions Currency Report’ November 2018 represents some of the findings from the Single Source survey, which is based on in-depth interviews conducted face-to-face with over 50,000 consumers in their home.

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ROY MORGAN LIMITED

Hayne gets blame for retail spending squeeze

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 4 : 17-Jan-19

Australian retailers had mixed fortunes during the crucial Christmas shopping period, according to analysts. Data from ShopperTrak shows that shopping centres recorded a 12.2 per cent decline in customer traffic in December, including a 23 per cent fall in the week to December 30. Meanwhile, retail adviser James Stewart says factors such as falling house prices and tighter access to credit in the wake of the financial services royal commission are weighing on consumer spending. He adds that more retailers are likely to go into administration in 2019 following the recent collapse of clothing chain Ed Harry.

CORPORATES
SHOPPERTRAK INCORPORATED, ED HARRY MENSWEAR, MORGAN STANLEY AUSTRALIA LIMITED, MICHAEL HILL INTERNATIONAL LIMITED – ASX MHJ, KATHMANDU HOLDINGS LIMITED – ASX KMD, THE REJECT SHOP LIMITED – ASX TRS, KMART AUSTRALIA LIMITED, NONI B LIMITED – ASX NBL, THE PAS GROUP LIMITED – ASX PGR, WESFARMERS LIMITED – ASX WES, NOMURA AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Goldman hits at doomsday savings chatter

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Original article by Tim Boyd
The Australian Financial Review – Page: 12 : 21-Dec-18

Andrew Boak and Tom Kennedy have differing views on whether low savings rates are a sign that Australian consumers are optimistic. Boak, who is Goldman Sachs’ chief economist in Australia, believes that low saving rates show that consumers are using their savings to spend, and it reflects a sense of optimism. However, Kennedy, who is JP Morgan’s global fixed income strategist, says if consumers were feeling that optimistic this would also be reflected in similar moves in credit card debt and short-term debit items.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, JP MORGAN AUSTRALIA LIMITED, NOMURA AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

Retailers hope for big bang finish

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Original article by Sue Mitchell
The Australian Financial Review – Page: 3 : 20-Dec-18

The Australian Retailers Association expects consumers to spend nearly $15bn during the last five trading days before Christmas. It still anticipates that Christmas spending will increase by 2.9 per cent in 2018. Many retailers are also counting on a spike in sales during the final days before Christmas, after less price discounting than in 2017. Meanwhile, Craig Woolford of Citigroup says consumers may spend less during the traditional post-Christmas clearance sales due to the impact of recent online promotions such as Black Friday and Cyber Monday.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, CITIGROUP PTY LTD, VEND LIMITED, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, REBEL SPORT LIMITED

Hybrid and fully electric vehicles now considered as serious alternatives to petrol

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Dec-18

A Roy Morgan Single Source survey shows that 52.2% of Australian drivers would now seriously consider buying a hybrid vehicle, compared with 48.8% a year ago. Interest in buying a fully electric vehicle has increased from 31.6% to 36.2% over the last 12 months. The overall consideration for electric based vehicles (hybrid or fully electric) is now 56.1%, an increase from 52.4% last year and well ahead of the nearest alternative, diesel on 45.5%. Diesel and LPG had been seen as the main alternatives to petrol up to 2015, but both have shown a declining trend over the last three years. Meanwhile, an estimated 77.5% of vehicles currently run on petrol, but this is likely to decline as only 63.7% of drivers say that their next vehicle is most likely have a petrol engine. These are some of the latest results from Roy Morgan’s ‘Automotive Currency Report’, which is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own home, including over 37,000 drivers aged+18.

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ROY MORGAN LIMITED

Huawei & Oppo fastest growing mobile phone handsets

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Dec-18

A Roy Morgan Single Source survey shows that 471,000 Australians aged 14+ owned Huawei mobile phone handsets in the 12 months to September 2018, which represents growth of 87% over the last two years. Meanwhile, 368,000 Australians now own an Oppo handset. However, Australia’s most widely-held handset is again the Apple iPhone, which is used by over 8.6 million Australians (up 16% on two years ago). The handsets of key rival Samsung are used by over 5.6 million Australians in 2018, virtually unchanged on two years ago. Meanwhile, analysis using Roy Morgan’s Helix Personas consumer segmentation and data integration tool shows that a fifth of Australians who own Huawei handsets are members of the Metrotechs community, while a quarter of Australians owning Oppo handsets are in the Fair Go community and 22% are in the Hearth & Home community.

CORPORATES
ROY MORGAN LIMITED, HUAWEI TECHNOLOGIES COMPANY LIMITED, OPPO ELECTRONICS CORPORATION, APPLE INCORPORATED, SAMSUNG ELECTRONICS COMPANY LIMITED