PayPal has released its 2019 mCommerce Index, revealing the shopping habits of Australian consumers.

According to the 2019 PayPal mCommerce Index, more than half of Australian consumers (55%) are ‘Conscious Consumers’ who have made purchase decisions, based on their values around the environment, ethics or fair-trade, in the last 12 months.

The Index, now in its fourth year, also found that while Australian shoppers are becoming more conscious, shopping habits remain heavily based on convenience. Consumers are shopping from the comfort of their couches (40%) or while scrolling through social media, with the number of Australians shopping on social media growing by a massive 42% YoY (27% in 2019, 19% in 2018).

What is the Conscious Consumer doing differently?

Conscious Consumers know that their purchases have an impact and are willing to back their beliefs with their wallets. They use their purchasing power to boycott brands that have a negative impact on society or the environment and reward those that align with their values.

This emerging wave of consumer power is being driven by the young, with 66% of Aussies aged 18-35 years making values-based purchase decisions in the last 12 months. Conscious consumer behaviour is lower for older Australians, with 55% of Aussies 35-49 years and 46% of the over 50’s being Conscious Consumers.

1-in-10 Aussies (10%) has boycotted a brand because of their values, a number that increases to 1-in-5 for Gen Z (19%); 1-in-7 Aussies (14%) had purchased a product specifically because it was sustainably produced or environmentally friendly, which jumps to 1-in-5 for Gen Z (19%) and 10% of Aussies buy environmentally-sustainable products and services wherever possible – regardless of price.

Additionally, 1-in-10 (11%) Aussies believe that fast fashion should have added levies to cover environmental impact, and 1-in-5 (19%) agree that companies should be banned from destroying unsold clothing (a quarter of Aussies (25%) under 35 years hold this opinion).

This emerging type of consumer does not buy whatever brands tell them is ‘on trend’. Instead, they actively seek out reviews to determine whether a product or service is right for them or aligns to their values. According to the Index, 2-in-5 (40%) Conscious Consumers have purchased products or services based on a positive online customer review.

Conscious Consumers don’t just seek out this information, they provide it as well. More than three quarters (78%) of this emerging consumer profile have posted a review after buying something online in the last 12 months, and contrary to the beliefs of half of surveyed Australian businesses (48%) who feel that consumers are more likely to leave reviews that are negative, 70% of these reviews were mostly (60%) or all (10%) positive.

Jess Rix, PayPal Australia’s Shopping Expert, said, “There’s a new wave of consumer behaviour and it’s being driven by the young. Aussies are putting their money where their mouth is when it comes to environmentally and socially sustainable products. Every buying decision has the power to change the world a little and we’re beginning to see a shift as Australians are increasingly choosing brands that operate ethically and sustainably over those that don’t.”

Cost is a consideration for both consumers and businesses, with 2-in-5 Aussie businesses (41%) saying that while they’d like to sell more ethical products or services it’s too expensive. 1-in-6 consumers (16%) say they try to buy sustainable products and services but can’t always afford to.  Additionally, 24% of Aussies find it difficult to identify if a brand operates ethically or sustainably, this jumps to 33% of Conscious Consumers.

Staying in is the new going out

Aussies will do anything to shop conveniently and the most popular place to mobile shop is when we’re at home relaxing (68%). Almost 2-in-5 of Aussies are shopping on our mobiles when watching TV on the couch (40%), in bed (38%) and 1-in-8 of us admit to mobile shopping while in the dunny (12%).  

Whether it’s a reflection of sluggish wages growth, the impact of high energy costs or simply that Aussies are taking some downtime, it appears that ‘staying in’ is the new ‘going out’. In 2019, mobile purchases of experiences such as concert and theatre tickets decreased 21% YoY (38% vs 48% in 2018) with flights and hotels also down 13% YoY (35% vs 40% in 2018).  Instead, Aussies are opting for at-home subscription services, such as Stan, up 36% YoY (30% vs 22% in 2018) and convenient home delivery grocery services, increasing 32% YoY (37% vs 28% in 2018).

“Convenience reigns supreme among consumers: we are choosing not to leave the comfort of our own homes, let alone our own sofas, to shop – and why would we when we’ve all got the equivalent of a limitless shopping centre sitting in the palm of our hands and only a click away. 

“Some people might think we’re a nation of lazy shoppers, but with our busy lifestyles, it’s more the case that we want to be able to buy the things we need whenever and wherever we want, and have access to everything in one place,” said Jess Rix.

The constant pursuit of convenience goes beyond just browsing on smartphones, but also making payments with them when we do physically go out shopping. More than half (55%) of Aussie consumers have used their smartphones to make tap-n-go payments in stores or physical locations, a figure that rises to 81% our youngest shoppers, Gen Z. The rise of paying with contactless devices makes consumers’ lives easier, eliminating the need to carry anything other than their mobile when they leave the house.

Spending via social media is fast becoming a reality of everyday life

Social commerce, or shopping via social media platforms like Facebook and Instagram, has grown exponentially, with a 42% YoY increase and more than doubling since 2017.  More than a quarter of surveyed consumers (27%) have made purchases via social media in the last six months, compared to 19% in 2018 and just 11% in 2017. Young Australians, in particular, have latched on to the trend, with 38% of Gen Z and 36% of Gen Y purchasing via social media in the last six months.

While Facebook remains the most popular platform among social media shoppers (83%), Instagram saw the largest YoY growth (34% in 2019 and 25% in 2018 vs Facebook 81% in 2018).

Social media shoppers spend an average of $121 per month via social channels. In fact, nearly a quarter of social media shoppers (21%) purchase or pay at least weekly via social media.

Despite this surge in popularity, trust is proving to be the biggest barrier to social commerce adoption. As many as 1-in-3 surveyed consumers (31%) are wary of social media and 37% are concerned about the safety of personal information when bank details are uploaded to make a payment.  However, 41% of social shoppers would buy from a social media platform if they could use their PayPal account for safety and convenience.

“The lines are blurring between social media and e-commerce and the sheer amount of time spent by younger Aussies on social media means that social is poised to boom as shopping channel. With Gen Y and Gen Z almost constantly connected, and mainly on social media, it’s natural that we’d take the opportunity to discover, explore and buy the products and brands we love in the social spaces where we spend most of our time,” concluded Jess Rix.

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