Saturday, August 13, 2022

Seniors shift shopping to cyberspace

Almost all (98%) seniors in Australia are expected to be online by 2030 (up from 91% today). Consumption by the senior segment is expected to grow by 60% over the next decade, twice as fast as the general population.

The findings come from a new McKinsey Global Institute report, Beyond income: Redrawing Asia’s consumer map, which shows shifts in Australia’s consumer landscape.

Thomas Rüdiger Smith, a McKinsey associate partner in Sydney and leader in McKinsey’s consumer practice said companies need to get to know the distinct segments of consumers who are set to drive growth in the region.

“The key feature for our region over the next ten years and beyond will not just be scale and growth, but further diversity in what are already incredibly diverse consumer markets,” he says. “We expect consumers in the region to trailblaze new paths.

“Most interesting for Australia will be almost all seniors shifting online. This is clearly accelerated by the pandemic, and the challenge is now on for businesses to grab and understand the opportunity within that trend,” Mr Rüdiger Smith says.

“To capture these new and evolving growth opportunities, companies need to rethink their entire customer map. Doing so can help make effective decisions on a range of activity, from product development, marketing, resource allocation to what kind of ecosystem to operate in.”

The report also found:

  • 78 percent of adults in Australia are expected to have at least one subscription service, up from 67 percent in 2018.
  • Buy-now-pay-later grew in Australia by 57% per annum from $2 billion in 2016 to $9 billion in 2019; and is expected to grow 30% per year over the next three years.

The paper is available to download at www.mckinsey.com/mgi and at www.mckinsey.com/featured-insights/future-of-asia.

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