Consumer spending predictions in 2022

(Source: Bigstock.)

If the past two years have taught us anything, it’s that being available to consumers across different channels is key to your success. In the fourth report of its kind, Pattern Australia polled 1000 online shoppers in March 2022 to learn about customer behaviour last year and how shopping habits are likely to change in the year ahead. 

Each month Pattern releases research into online performance trends, benchmarking a range of metrics and channels for the Australian market. This data along with the recently launched 2022 Australian Shopper Report paints a data-driven prediction of what 2022 may look like in the months ahead.

According to Statista, Australian e-commerce user penetration will be 74.7 per cent this year and is expected to hit 77.2 per cent by 2025. With continued growth on the horizon, we’ve highlighted five key predictions for this year.

  1. Online share of wallet will increase

Eighty-five per cent of those polled plan to maintain or increase their online spending levels this year, with 19 per cent expecting to spend ‘a lot more’. Confidence levels are increasing in newly converted online shoppers with 38 per cent of respondents planning to buy from different online stores this year and we’ve also seen a notable increase in those planning on spending more on marketplaces such as Amazon, Ebay and Catch.

  1. D2C has a huge opportunity – but also huge competition ahead

Each year we hear that price is the major determining factor in deciding who to buy a product from. When asked why consumers purchased specifically from a D2C site, aside from price, the perception of a wide range and exclusive products was a key driver. Following this was the idea that a D2C site was easier to use. Understanding the key factors influencing consumers to buy from your site over others will be key to your 2022 D2C success. 

  1. Brands will be found first on marketplaces

Seventy-five per cent of Australians used Amazon to inform purchase decisions in 2021 with 48 per cent stating they visited the site to check prices. Sixty-five per cent of consumers made a purchase on Amazon last year and of these, 64 per cent bought from a brand for the first time. Marketplaces such as Amazon are being treated as search engines for consumers to discover, research and try new products. Of those who had shopped on Amazon in 2021, 44 per cent expect to increase their spending on the platform this year.

  1. Luggage and travel goods will fly

The biggest online growth categories expected are in Luggage & Travel, with 60 per cent more consumers expecting to make a purchase in 2022, compared to the previous year.  DIY and Home Improvement showed the next highest potential with 13 per cent more consumers planning to spend online compared to last year. 

Looking specifically at Amazon, aside from luggage, both Haircare and Sports, Fitness & Outdoor categories showed the highest growth potential, with more respondents indicating they would purchase these categories from Amazon this year than they did in the past year.

  1. Brands will reconsider store locations

Thirty-six per cent of those polled expect to spend less in brick-and-mortar stores this year; this sentiment was shared mainly with those in metropolitan areas. Australian retailers need to consider what this means for the role of their physical locations in the year ahead. 

With 73 per cent of consumers expecting their shopping habits to change this year (up significantly from our 2021 report), brands also need to strategise how their business will change and continue to evolve to the changing behaviours of Australians.  

You can download the full report here

To discuss how Pattern can help to define your digital strategy, trade your direct-to-consumer website or support your sales on Amazon and other marketplaces please contact us at au@pattern.com or visit pattern.com/au.

About the author: Kathryn Coleman is head of customer marketing at Pattern Australia