CONSUMER BEHAVIOR – AUSTRALIA

$39 billion purchase of Afterpay highlights value of buy-now-pay-later services such as Zip, Humm and LatitudePay

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Original article by Roy Morgan
Market Research Update – Page: Online : 11-Aug-21

The latest Roy Morgan Digital Payments Report shows that 16 million Australians aged 14+ (75.5%) are now aware of buy-now-pay-later services such as Afterpay, Zip, Latitude Pay, Humm and Openpay. The high and growing awareness for buy-now-pay-later services comes as Silicon Valley ‘tech giant’ Square has lodged a bid of $39 billion ($US29 billion) to buy Australian market leader Afterpay. Awareness of buy-now-pay-later services has overtaken that of traditional online payment platforms (74.5%) such as PayPal, Visa, Western Union and masterpass for the first time. Afterpay is the clear market leader, with 73.4% of Australians aware of the service in the year to June 2021, up 3.4% points since February 2021 and up 39.6% points since September 2018. Meanwhile, 52.9% of Australians are now aware of main rival Zip, an increase of 4.3% points since February 2021; awareness of Zip amongst Australians is now rising at a faster pace than Afterpay. The two main buy-now-pay-later services have been joined by a host of second-tier fintech companies in the space, including Humm, LatitudePay and Openpay – and awareness of all three is growing rapidly.

CORPORATES
ROY MORGAN LIMITED, AFTERPAY LIMITED – ASX APT, SQUARE INCORPORATED, ZIP CO LIMITED – ASX Z1P, HUMM GROUP LIMITED – ASX HUM, LATITUDE PAY, OPENPAY GROUP LIMITED – ASX OPY

Supermarkets dominate Australia’s most trusted brands in 2021 led by Woolworths, Coles, Bunnings & ALDI

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Original article by Roy Morgan
Market Research Update – Page: Online : 6-Jul-21

Roy Morgan data scientists analysed nominations from more than 20,000 Australians to identify the nation’s 20 most trusted brands, and the 20 most distrusted brands. The COVID-19 pandemic has led to a retail sales boom on the back of record Government support for the economy, and it is perhaps unsurprising that leading supermarket and retail brands fill five of the top six spots as Australia’s most trusted brands. The latest Roy Morgan Risk Report reveals that the nation’s two largest supermarket brands, Woolworths and Coles, took out first and second places on the list of most trusted brands in the country in early 2021, followed closely by leading hardware retailer Bunnings Warehouse and fellow supermarket ALDI. The Roy Morgan Risk Report also reveals the top-20 list of Australia’s most distrusted brands, with several brands entering the top 10 for the first time including Amazon, Rio Tinto and Huawei, and brands such as Crown Resorts, Uber, Twitter and TikTok new entrants into the top 20 list. Leading banks including NAB, ANZ and CBA were among the big improvers on the distrust ladder with all three dropping well out of the top-10 most distrusted brands. The Roy Morgan Risk Monitor surveys approximately 1,800 Australians every month to measure levels of trust and distrust in more than 900 brands across 26 industry sectors.

CORPORATES
ROY MORGAN LIMITED, WOOLWORTHS SUPERMARKETS, COLES SUPERMARKETS AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, ALDI STORES SUPERMARKETS PTY LTD, AMAZON.COM INCORPORATED, RIO TINTO LIMITED – ASX RIO, HUAWEI TECHNOLOGIES (AUSTRALIA) PTY LTD, CROWN RESORTS LIMITED – ASX CWN, UBER AUSTRALIA PTY LTD, TWITTER INCORPORATED, TIKTOK, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

More Australians switching insurance since COVID-19

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Original article by Roy Morgan
Market Research Update – Page: Online : 9-Jun-21

New data from Roy Morgan shows that since the COVID-19 pandemic began, Australians with either vehicle insurance or household insurance have been far more likely to switch their insurance provider, and also far more likely to consider switching after looking for deals from other companies. In the year to March 2021, only 62.9% of the nation’s 30 million+ vehicle insurance policies (including Compulsory Third Party) were renewed without approaching another company, down from 77.9% in the year to March 2020. There was a significant increase in vehicle insurance policies that were renewed only after approaching other companies, up 9.2% points to 23.5%. There was a similar trend in the household insurance market, which comprises nearly 25 million policies. Some 68.1% of these policies were renewed without approaching another company, down 12.3% points from the year to March 2020 when 80.4% of household insurance policies were renewed. Meanwhile, 22% of household insurance policies were renewed after approaching other companies, up 7.7% points from a year ago, and 6.1% of policies were ‘switched’ from another company, up from 3.7% a year ago. These are some of the latest findings from Roy Morgan’s Single Source insurance data derived from in-depth personal interviews conducted with over 50,000 Australians per annum, including details of over 75,000 vehicle insurance policies and over 65,000 household insurance policies.

CORPORATES
ROY MORGAN LIMITED

McDonald’s, KFC, Hungry Jack’s & Domino’s Pizza are Australia’s favourite restaurants

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Original article by Roy Morgan
Market Research Update – Page: Online : 25-May-21

New research from Roy Morgan shows that 15.9 million Australians aged 14+ (75.3%) ate take away food in an average four weeks from fast food outlets in 2020. This was a significant increase on 2019, when there were 13.3 million (63.7%) customers of fast food outlets. There are now ten quick service restaurants with at least one million Australian customers buying food in an average four weeks, with old favourite McDonald’s again the leading restaurant with over 8.1 million. In clear second place is KFC (Kentucky Fried Chicken) with over 6.8 million customers, while third place is a close contest between burger franchise Hungry Jack’s (4.2 million) and Domino’s Pizza (4.1 million). Filling out the top five is sandwich and salad outlet Subway with 3.2 million customers, followed by chicken-based Red Rooster with over 2.1 million customers. Analysing the leading quick service restaurants by generation shows that Millennials are the biggest customers of all three of the leading fast food outlets, narrowly ahead of the younger Generation Z. Older generations are less frequent customers of fast food outlets, but McDonald’s remains the leading choice for Generation X, Baby Boomers and Pre-Boomers ahead of KFC and Hungry Jack’s.

CORPORATES
ROY MORGAN LIMITED, McDONALD’S AUSTRALIA LIMITED, KFC, HUNGRY JACK’S PTY LTD, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, SUBWAY SANDWICHES PTY LTD, RED ROOSTER FOODS

Queensland is the favoured pick for longer holidays during the pandemic with international borders closed

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-May-21

New data from Roy Morgan’s Holiday Travel Intention Leading Indicator Report shows that 5.68 million Australians (26.9% of those aged 14+) in the March quarter intend to take a holiday during the next 12 months. Of these travellers there were 5.24 million set on taking a domestic holiday and a further 340,000 planning an overseas holiday – although according to the Federal Budget the international borders are set to remain closed for holidaymakers until early next year. There were a small number of prospective travellers who couldn’t decide whether their holidays would be domestic or international. For those planning a holiday of at least three nights Queensland is now the top destination for 24.9% of travellers, just ahead of New South Wales (22.7%); Victoria (11.6%) and Western Australia (11.1%) are significantly further behind. Other holiday makers have opted for another domestic destination, an international destination (which will have to be reconsidered with borders set to remain closed), or do not yet have any particular destination in mind at all. In 2019 prior to the pandemic New South Wales had been the top domestic destination for holidays of at least three nights, chosen by 17.2% of travellers – just ahead of Queensland (16.4%) and Victoria (15.3%). These are the latest findings from the Roy Morgan Single Source survey, derived from comprehensive in-depth interviews with 1,000 Australians each week or over 50,000 each year.

CORPORATES
ROY MORGAN LIMITED

Full strength beer is preferred by Australia’s beer drinkers

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-Apr-21

New data from Roy Morgan’s Alcohol Consumption Report shows that 6,277,000 Australians aged 18+ (34.6%) drink beer in an average four weeks. This is second only to wine as the alcoholic drink of choice for Australians. Nearly a third of Australians aged 18+ (30.2%) consumed full-strength beer in an average four weeks in 2020, down 3.1% points from 2019 (33.3%). In comparison only 8.6% of Australians consumed mid-strength beer (down 2.2% points on 2019) and just 2.8% (down 1.1% points) had low-alcohol beer in an average four weeks during 2020. Men are the main consumers of beer, with over half (52.4%) consuming beer in 2020 compared to only 17.5% of women. The ratio is very similar for full-strength beer with nearly half of men, 45.9%, consuming full strength beer in 2020 compared to only 15.2% of women. Less than one-in-seven men (13.9%) drink mid-strength beer and only 4.6% drink low-alcohol beer. Even fewer women (3.5%) drink mid-strength beer and just 1.1% of women drink low-alcohol beer. The findings are from the Roy Morgan Single Source survey, Australia’s most trusted and comprehensive consumer survey, derived from in-depth interviews with 50,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED

Economy gets caffeine hit as spending soars

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Original article by Matthew Cranston
The Australian Financial Review – Page: 3 : 22-Apr-21

Data from the Australian Bureau of Statistics shows that retail sales increased by 1.4 per cent nationwide in March, after falling by 0.8 per cent in February. Retail sales grew by 5.5 per cent in Western Australia and four per cent in Victoria, with both states having been affected by snap COVID-19 lockdowns in February. Consumer spending totalled $30.7bn overall in March, which is 10.6 per cent above pre-pandemic levels. The growth in retail sales has been driven by service-oriented businesses such as cafes and restaurants.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

Number of Australians drinking alcohol increases for first time in 4 years in 2020 – powered by wine, spirits and RTDs

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Original article by Roy Morgan
Market Research Update – Page: Online : 21-Apr-21

New data from Roy Morgan’s Alcohol Consumption Report shows that the proportion of Australians who drink alcohol increased by 0.8% points to 67% in 2020. It is the first year-over-year increase since 2016, when 69.6% of Australians drank alcohol, up 0.7% points on 2015. A total of 13,337,000 Australians (67.0%) aged 18+ consumed alcohol in an average four-week period in 2020, up from 13,021,000 (66.2%) a year earlier. The number of Australians drinking wine increased from 8,065,000 (41.0%) to 8,814,000 (44.3%), an increase of 3.3% points over the year. In addition, some 6,277,000 Australians (31.5%) drank spirits in 2020, up from 5,465,000 (27.8%) a year earlier – an increase of 3.7% points. Consumption of Ready-to-drinks (RTDs) increased from 2,101,000 Australians (10.7%) to 2,392,000 (12.0%). However, outside these three categories the long-term trends continued, with fewer Australians drinking beer, cider, liqueurs and fortified wines in 2020. Beer led the decline and was down from 7,353,000 Australians (37.4%) in 2019 to 6,878,000 (34.6%) in 2020. If the trends of last year were to continue this year the number of Australians drinking spirits would overtake those drinking beer. The findings are from the Roy Morgan Single Source survey, Australia’s most trusted and comprehensive consumer survey, derived from in-depth interviews with 50,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED

E-commerce is booming: PwC

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Original article by Eli Greenblat
The Australian – Page: 15 : 29-Mar-21

PwC has reported that non-food online sales recorded more than five years’ growth in just 11 months, due to the pandemic. The increase in both food and non-food online sales during the pandemic was reflected in the latest reporting season, with Woolworths reporting that its online sales rose by 92 per cent in the December half, while furnishings and bedding retailer Adairs advised that its online sales had increased by 95.2 per cent. Pure-play online marketplace Kogan stated that its sales rose almost 90 per cent, while Myer’s online sales increased by 71 per cent. Vanessa Brennan from PwC says that the consumer is "now in charge" and that this means that innovation is "now business as usual".

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, ADAIRS LIMITED – ASX ADH, MYER HOLDINGS LIMITED – ASX MYR, KOGAN.COM LIMITED – ASX KGN

Australians support masks and border closures and are willing to be vaccinated for COVID-19

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Original article by Roy Morgan
Market Research Update – Page: Online : 18-Jan-21

A special Roy Morgan survey into Australian attitudes towards COVID-19 conducted on Thursday and Friday shows 72% of Australians say mask wearing should be compulsory, 68% don’t want State borders to be completely open and 77% would be willing to be vaccinated if a new Coronavirus vaccine became publicly available – unchanged from mid-November. Support for compulsory mask wearing is highest in NSW (80%) and Victoria (77%) but at only 53% in South Australia. A large majority of 85% of people in WA don’t want State borders to be completely open today – a higher rate than any other State and in line with the tough border policies of Premier Mark McGowan who faces an election in early March.

CORPORATES
ROY MORGAN LIMITED