tronics by 49 per cent and home furniture by 52 per cent, according to research by Shopfully. Essentials have also been the priority for 74 per cent of American consumers in the last three months, with 31 per cent of Americans reducing non-essential purchases as their number on savings strategy, according to a survey conducted by NIQ. This shift in shopping behaviour is not particularly surprising for retailers but it does present a unique marketing challenge. By identifying new trends in how consumers are making purchase decisions around promotional discounts and impulse purchases, retailers can meet the consumer where their budget is and potentially bend it. Playing into the discount frenzy  The majority of consumers are approaching new purchases with a clear long-term strategy.  “Our recent research peaks have been consistent in uncovering the concerns of the Australian consumer around the cost of living crisis the country finds itself gripped by,” said Brendan Straw, country manager of Australia at ShopFully. Shopfully’s research found that discounts are set to be a priority for consumers with 57 per cent of consumers flagging they will be alert and on the lookout for promotions all year.  “It is encouraging to see that – although spending is set to decline – consumers are being more savvy about when they spend, relying on promotional deals and big sales events to make up for planned cutbacks on a variety of different goods,” said Straw. With cost predominantly driving consumers’ purchase habits, 65 per cent of Australians indicated that attractive prices and discounts would be a top motivator to try new brands, according to Shopfully.  There is a long-standing fear amongst retailers that overuse of discounts and promotions can decrease a brand’s perceived value; however, sales aren’t the only stimuli that encourage consumers to checkout. Reigniting the impulse purchase spark The cost-of-living crisis is also causing downward pressure on impulse purchases and has marketers focussed on winning back consumers’ impulse to spend.  “Every category relies to some degree on unplanned shopper purchases, but there are many factors in play right now that are bad news for impulsive behaviour,” said Andrew Wardlaw, chief ideas officer of MMR Research.  Purchases made on a whim without any planning or forethought constitute an impulse purchase, and they make up a staggering portion of retail’s overall revenue. It has been estimated that roughly 62 per cent of in-store purchases are made impulsively and online buyers are even more likely to purchase on impulse. But Wardlaw cautioned that brands will have to walk a fine line between creating a fear of missing out mentality while simultaneously staying aligned with core consumer values. The detrimental effect of tightening household budgets is only exacerbated by the low-attention economy – with brands finding it harder and harder to pull focus and encourage consumers to make a cost sacrifice on a whim. “The collapse of impulse buying necessitates a shift in our approach to product development and consumer engagement,” said Wardlaw. To recapture the impulsive shopper Wardlaw suggests that brands take a three-tiered approach: create scarcity with a limited-edition collaboration, lean into the values a product embodies and ensure the packaging is nothing short of eye-catching.  The infamous lipstick index, commonly referred to as the “lipstick effect”, a term coined by Estée Lauder’s Leonard Lauder, suggests that in times of economic crisis consumers are drawn to purchasing affordable luxuries.  Brands and retailers don’t have to be amongst the discretionary purchase casualties if they play by consumers’ rules and psychology.