Overseas born consumers are outspending Aussie born shoppers at a faster rate, according to the latest research from Nielsen.
Findings from Nielsen’s Ethnic-Australian Consumer Report indicate that those born overseas will spend a total of $18.7 billion (or 28 per cent) on grocery items in the next five years. This represents an increase of $4.4 billion in incremental revenue, with Asian born consumers making up 57 per cent 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,” said Justin Sargent, CEO Pacific at Nielsen.
“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 to the rest of the consumer population – they want more fresh produce, more seafood and healthier food options.”
Nielsen’s research found Asian born consumers devote almost a third of their grocery spend to fresh food and three-quarters would shop more at mainstream supermarkets if there was a greater international selection.
According to the report, Asian born Australian consumers ‘tend to be well informed with almost half being influenced by retailer catalogues and brochures’ and this group are highly price sensitive and are most likely to compare prices online before purchasing.
The report stated Asian born consumers 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. Marketers need to re-examine their short and longer-term strategies to engage with this growing consumer group,” said Sargent.
“Brands and retailers may consider more in-store product variations, increased nutritional information and more focused promotional events.
“Importantly, the changing Australian demographic impacts on the whole population. Australians as a whole are buying more international foods and flavours.”
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.
