During EOFY sales.
Two thirds of Australian consumers are considering making a purchase during the EOFY sales this year, if the price is right, according to new research from marketing services company, Salmat.
The study found that one fifth (20%) of respondents said they ‘plan to purchase’ something in the EOFY sales this year. Just under half (46%) of shoppers indicate they ‘may purchase’ something, while a small amount (13%) are ‘undecided’.
Respondents were asked when they like to start their shopping for EOFY sales, with 22% reporting as soon as the sales are announced, 32% said sometime in the month of June, and 14% said in the last week of June for the final markdowns.
Salmat retail business consultant, Dan Salter said, “Marketers should heed consumer behavior ahead of the sales periods. Our research shows that the majority of respondents plan their EOFY shopping in advance, so retailers can garner a real advantage by ensuring timely and effective communication in the critical planning stages of consumers purchase journey.
“Promotions delivered to consumers at key times will ensure greater ROI in key sales periods and deliver real value to consumers. Our advice would be to start heavy promotion from the start of June, with one third of our respondents stating that they do will start EOFY then.”
Appliances top the list
From the research, it’s expected there will be a strong focus on purchasing items for the home, with home appliances (37%) and furniture/homewares (35%) being the most popular categories. At the other end of the spectrum, shoppers are least interested in purchasing automotive items (9%) and holidays (11%) in the EOFY sales.
When considering making a purchase in the sales period, findings were consistent for both 2017 and 2018, and the overwhelming majority of shoppers (86%) indicated price is the most important factor when shopping, followed by quality (69%), convenience (62%), product availability (58%) and promotions (50%).
“Retailers of all types should consider how they can get the best out of the EOFY sales. Those selling bigger ticket items, like homewares and appliances, are well placed to get the best out of the EOFY sales given consumer demand for these types of products. The EOFY sales are also a great time to move stock and tap into consumers’ focus areas,” Lane said.
Online vs offline
According to the research, half of shoppers indicated that the physical store is an influential touchpoint when deciding on which brand to purchase. Other touchpoints that are influential to shoppers include promotions (36%), retailer websites (29%) and web searches (29%).
The growing investment by local and international retailers in e-commerce channels, also means there is now more choice for shoppers during the EOFY sale period. With more choice comes more need to research, and in terms of where EOFY shoppers gather information on sales items, the ACRS research uncovered that an equal number of respondents (35%) prefer to browse and buy in-store, or browse online and buy in-store.
The most popular ways shoppers research and plan EOFY shopping is via internet search (42%), online stores (41%) and in-store (36%), followed closely by online catalogues (31%) and letterbox catalogues (30%).
“To capitalise on consumer preference, marketers and retailers need to ensure they are adopting strong, hybrid marketing strategies that work harmoniously across both in store and online channels – doing so will ensure a smooth customer journey,” Lane said.
“For retailers and marketers, investment in the brand’s website and e-commerce channels, along with SEO and SEM to improve a brand’s visibility in online channels is becoming increasingly important as consumers are shopping around for the best deals. Catalogues are another proven channel to drive purchases. By creating a print catalogue and extending its life online on sites like lasoo.com, you create greater ROI and reach consumers both online and offline,” he added.