3 minute read
Continued product shortages leave shoppers frustrated
NATIONAL
Brand switching is on the rise, putting brand loyalty at risk
Supply chain issues continue to impact Australians, affecting both their mood and shopping behaviour, according to new research by Toluna, a leading consumer intelligence platform.
Research surveyed 1,031 Australians between 4 to 9 February 2022. Results showed many shoppers are happy to switch brands when their preferred brand is not available, leaving longterm brand loyalty in question.
Most Australians surveyed (73%) have recently experienced product shortages because of ongoing supply chain issues. In stores, shoppers continue to experience empty shelves (88%) and buying limits (66%), while online shoppers are experiencing delivery delays (50%) and brand unavailability (51%). When it came to online shopping, almost half (47%) of respondents said they were willing to go back to instore shopping due to products being temporarily unavailable online.
Grocery stores appear to be most affected, with 85% of respondents citing availability issues.
However, shoppers also report having experienced product shortages in clothing and footwear retailers (19%), homewares (16%), and electrical stores (14%). According to two-thirds of respondents (64%), fresh meat is proving the most difficult item to source, with pantry products (44%), fresh fruit and vegetables (40%), and household cleaning products (33%) also difficult to find. Brand loyalty and changing behaviours
When the preferred brand is unavailable, most (77%) Australians are willing to substitute a new brand. This poses an issue for long-term brand loyalty. Across the various categories, shoppers were happiest to switch to a different brand of chilled dairy (54%), household cleaning products (49%), or alcohol (44%) when their preferred brand was unavailable. However, Australians are more likely to shop around in search of their favourite fresh meat (40%), pet food (40%), or baby products (35%).
Results also highlighted that half (50%) of respondents now shop in other locations, such as local butchers or farmers markets, that are less impacted by supply chain issues. Just under half (43%) buy extra of the products they need once back in stock, and one in five (20%) are stockpiling products such as canned goods, paracetamol, and toilet paper to boost supplies. Stressed out and in prep mode
More than just an inconvenience, the supply chain issues are affecting shoppers’ moods. Two-thirds (67%) of Australian shoppers feel disappointed and frustrated when they see empty shelves and missing products, and for some, it can make them feel stressed (35%), anxious (36%), or even angry (27%).
Australians are also preparing themselves in case they get sick and have to isolate. One in three (30%) have created a ‘COVID kit’ filled with medicines they may need if they get sick, while one in four (26%) are ensuring they have enough pre-prepared food in the fridge, so they do not need to cook if they are feeling unwell. A quarter (27%) of respondents are also ensuring they have a supply of rapid antigen tests (RAT) available on hand if they need.
Sej Patel, Country Director, Toluna, Australia & New Zealand said the ongoing issues with product unavailability are affecting shopping behaviour.
“Australian shoppers are clearly frustrated by the continued supply chain issues and are changing their behaviour as a result. Our research shows that people are brand switching more than ever, as well as shopping around to find the items they need. For brands and retailers, this may have serious implications for brand loyalty.
“While some shoppers will happily revert back to their favourite brands when they return to the shelves, other shoppers will just as happily stick with the substitute brands they tried. Even once the supply chain issues are resolved, the next six to twelve months will be a challenging time in retail as brands fight to retain new customers while trying to win back old ones.”
