New research has revealed that nearly 4 in 5 Australian shoppers will proactively support small businesses in their recovery in the next 12 months, by spending with them rather than with big businesses.
The findings were derived from a survey of an independent, nationally representative panel of 1002 Australians commissioned by parcel delivery service CouriersPlease (CP).They were released in the lead up to the popular November shopping events Click Frenzy (10th-12th), Singles Day (11th), Black Friday (27th), Small Business Saturday (28th), and Cyber Monday (30th), which present a strong opportunity for small businesses to drive consumer spend by encouraging their participation in these events.
The survey reveals that consumers plan to not only shop small, but shop local: 87 per cent said they will proactivity spend with local rather than global businesses in the next year to help with economic recovery in Australia.
CP also analysed the behavioural differences across the major States. In NSW, 90 per cent of consumers said they will spend with local businesses, and 81 per cent will proactively spend with small businesses over the next 12 months. The States’ economies were hit particularly hard this year. In NSW, State Final Demand – the total value of goods and services sold in a State – declined by 8.6 per cent.
In Victoria, the economy is set to shrink by $23.5 billion, compared with pre-COVID-19 forecast, and it’s expected there will be 79,000 fewer jobs over the next five years. Eighty-five (85) per cent of Victorians plan to shop locally and 77 per cent will shop with small businesses to help the state recover.
Queensland is facing an $8.1 billion deficit and the State Government’s debt is set to rise to $101.9 billion by next June. A higher proportion of Queenslanders (87 per cent) will shop with local businesses over the next year, while 78 per cent plan to shop with small businesses.
“The lockdowns, social restrictions, closed borders, and travel bans have directly and indirectly impacted the majority of small businesses. This month’s shopping events present multiple opportunities for local and small retailers to drive consumer spend and repeat purchases, particularly given the public’s willingness to change their spending habits in support of the small business retail sector’s recovery, Paul Roper, Chief Commercial Officer at CP, said.
Paul said the challenges for the CP network are in the processing of nearly double the normal parcel volumes while maintaining efficiency, successful first-time deliveries, and a high standard of customer service.
“Local retailers should also focus on enhancing their eCommerce platforms, including ensuring their online transaction process is seamless. This includes managing stock levels, providing a quality customer service experience, offering multiple delivery options, and ensuring their delivery partner maintains a smooth and efficient delivery process. This will help encourage shoppers to purchase with them, over global brands.”