Sunday, May 26, 2024

Consumers born overseas driving retail growth

Grocery spend for overseas-born Australians will grow to 28 per cent of total spend in the next five years, with Asian-born shoppers to contribute 57 per cent of this growth, according to Nielsen’s Ethnic-Australian Consumer Report.

The report indicates that overseas-born Australians will spend a total of $18.7 billion on grocery items in the next five years, representing an increase of $4.4 billion in incremental revenue, with Asian-born consumers making up more than half of this growth.

“Asian-born Australians are the biggest growing demographic in Australia today, and represent more than 10 per cent of the overall population – more than doubling in 20 years and showing no signs of slowing,” Nielsen Pacific CEO Justin Sargent said.

“This is a great opportunity for brands and retailers. Asian-born consumers are growing in importance and engaging with them requires a change in focus. Very few companies in Australia have embraced this to date.

“For example, Asians’ food preferences are very different compared with the rest of the consumer population – they want more fresh produce, more seafood and healthier food options.”

According to the report, Asian-born consumers devote almost a third of their grocery spend to fresh food and, importantly, three-quarters would shop more at mainstream supermarkets if there was a greater international selection.

Asian-born Australian consumers tend to be well informed, with almost half being influenced by retailer catalogues and brochures. This group are highly price sensitive and are most likely to compare prices online before buying. They are more likely to read product labels, are influenced by comments and reviews online, and are willing to pay extra for well-known brands. They are also twice as likely to be influenced by their children when shopping.

“Meeting the needs of Asian-born Australians is key to maximising these growth opportunities,” Mr Sargent said. “Marketers need to re-examine their short- and longer-term strategies to engage with this growing consumer group.”

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