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Online Shopping in Australia -
     A Generational View
Roy Morgan Research Single Source Survey
         January 2011 - December 2011




           Please direct any queries to andrew.braun@roymorgan.com
         Roy Morgan Research – 401 Collins Street, Melbourne VIC 3000
                            Telephone: 03 9224 5116
                             © Roy Morgan Research
About Roy Morgan Research Single Source
    The Roy Morgan Single Source Survey is a continuous survey of 50,000+
    respondents aged 14+ per annum (and has been running for over 20 years).                                                                               Single Source 360 degree consumer profile
    It is an Australia-wide survey of both city and country areas and thus is
    representative of the entire Australian population 14+.                                                                                                                                       Business decisions
                                                                                                                                                                            Sports & Leisure
                                                                                                                                                                                                         Travel & Tourism
                                                                                                                                                                    Automotive

    From this survey we gain a 360 degree profile of an individual, by collecting                                                                                                                              Retail stores
                                                                                                                                                           Home services
    information about their demographics, shopping behaviour, technology and
                                                                                                                                                                                                                   Retail products
    media consumption, financial situation, household composition, as well as                                                                                   Utilities
    1000’s of attitudinal statement about who they are and what makes them tick.                                                                                                                                  Beverages
                                                                                                                                                           Personal Care
                                                                                                                                                                                                                Groceries

    Of relevance to this report, is the Retail Monitor, where we ask respondents:                                                                                Healthcare
                                                                                                                                                                                                           Fast Food
                                                                                                                                                             Telecommunications
        1. What products have they purchased in-store in the last 4 weeks, how much                                                                                                 Consumer        Banking & Finance
             have they spent and with whom;                                                                                                                                         electronics

        2. What products have they purchased online in the last 4 weeks, how much
             have they spent and with whom; and
                                                                                                                                                                       Demographics, My Home, Attitudes to life
        3. A number of attitudinal statements about why they shop and what
             influences their shopping habits.                                                                                                                         Media consumption – TV, Print, Radio, Internet,
                                                                                                                                                                       Cinema, Outdoor, Catalogue, Mail

                                                                                                                                                                       Product/service ownership & consumption
    All data in this report is from the Single Source survey period January 2011 to
    December 2011.
© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                     1
Online Shopping in Australia – An overview

                            The Single Source Retail Monitor provides us with the following high-level insights for the year ending
                              December 2011:


                            • 53.7% of Australian’s 14+ have ever purchased something over the internet
                            • In an average four week period in 2011
                                       •      30.7% of Australian’s 14+ shop online
                                       •      $1.6b* is spent online
                                       •      eBay is the top shopping website with 31.2% of Australian’s 14+ visiting it
                                       •      6.6% of Australian’s 14+ have used group buying websites
                            • Generation Ys are the most likely to shop online with 40% having shopped online in an average four
                                week period


                          * This includes expenditure on the following categories: Books/Magazines/Newspapers; Music to Download using the Internet; Shows, Movie tickets,
                          Events etc; Travel product (tickets/accommodation); Computer Software; Computer Hardware; CDs; DVDs; Women's Clothing; Men's Clothing; Children's
                          Clothing; Underwear, Socks & Hosiery; Shoes & Footwear; Babywear & Goods; Cosmetics/Skincare; Jewellery & Watches; Fragrance/Perfume; Sports
                          Equipment; Toys or Games; Adult Entertainment; Supermarket Shopping; Alcohol; Health products; Home Entertainment equipment; Large Electrical
                          Goods; Small Electrical Goods; Communications Equipment; Homewares & Manchester; Furniture; Hardware; Plants & Garden; Pets & Pet products; Car
                          parts & Accessories; Other products




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                              2
Online shopping categories

               Outlined below are the top 10 online shopping categories (from a list of 35):

               Category                                                                      Number of Australian’s 14+                                    Average spend per category in
                                                                                             purchasing online in an average 4                             an average 4 week period ($)
                                                                                             week period
               Books/ Magazines/ Newspapers                                                                         1,072,000                                         $67.90
               Music to Download                                                                                    1,033,000                                         $22.40
               Shows, Movie tickets, Events etc                                                                     1,026,000                                         $153.80
               Travel Products (Tickets/ Accommodation)                                                              859,000                                          $489.60
               Computer Software                                                                                     529,000                                          $87.40
               DVD’s                                                                                                 519,000                                          $60.30
               Women’s clothing                                                                                      495,000                                          $112.40
               Toys or games                                                                                         469,000                                          $88.40
               CD’s                                                                                                  405,000                                          $45.70
               Small Electrical Goods                                                                                357,000                                          $118.40




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                           3
Introduction to this report


                            This report examines online shopping through the lens of different Generations. We examine how
                            Generations compare in their take-up of online shopping, what product categories they buy online and
                            their online expenditure.


                            This report also investigates the digital and traditional media which different Generations consume. This
                            is useful for retailers so they can develop targeted marketing programs to grow and retain online shopping
                            customers.


                            We also examine a number of technology and shopping attitudes by Generation. These include: a
                            person’s willingness to adopt new technologies, their attitudes to security and privacy, whether they go out
                            of their way for bargains and whether shopping is a major part of their lifestyle. This section also considers
                            some technologies that underpin online shopping, such as broadband penetration and Smartphone
                            adoption.




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                           4
Online shopping in Australia by Generations




                            This section of the report focuses on the online shoppers within each Generation, examining how their
                            different demographics impact on their online shopping spend, the categories in which they purchase
                            online, whether they prefer Australian online retailers, their mobile shopping habits and whether they
                            participate in group buying.




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                           5
Generations

                                                             Generation Z, also known as Generation M                                                                       A pre-boomer is a person
                                                             (for multitasking), Generation C (for                                                                          who was born before the
                                                             Connected Generation), the Net Generation,                                                                     Post-World War II baby
        Generation X is the largest of                       or the Internet Generation). This is a common            1,833,000                                             boom, i.e. pre 1946.
                                                             name for the group of people born from 1991.                                                       2,975,000
        the Generations with 27% of
        the Australia population 14+
        (or 5,027,000 people). Gen X
                                                                                                                                  9.9%
        have had a marginal increase
                                                                                                                                                   16.0%
        of almost 1% point since
        2008, from 26.1%                                                                                                                                                             A Baby Boomer is a person who
                                                                                                                                                                                     was born during the Post-World
                                                                                           4,580,000                                                                                 War II baby boom between the
                                                                                                                                                                                     years 1946 and 1960.
        Generation Z is the smallest                                                                                  24.6%
        but fastest growing segment,                       Generation Y, also known as the                                                                    22.5%
        having grown from 5.9% of                          Millennial Generation, Generation                                                                                     4,187,000
        the population (14+) in 2008                       Next, are the demographic cohort
        to 9.9% of the population in                       following Generation X. Roy
                                                           Morgan Research defines Gen Ys
        2011.                                              as having a birth date from 1976                                              27.0%
                                                           to 1990.

        Since 2008, Baby Boomers
        have been in decline, now                                                                                                                                 Generation X, is the generation born after the
        representing 22.5% of the                                                                                                                                 World War II baby boom ended. Roy Morgan
                                                                                                                                                                  Research defines Gen Ys as having a birth date
        population (14+) compared to                                                                                             5,027,000
                                                                                                                                                                  from 1961 to 1975.
        25.8% in 2011.

                                                                                                            Pre-Boomers        Baby Boomers         Gen X     Gen Y    Gen Z

                                                                                                                                                           Note: Generational definitions are sourced from Wikipedia

© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                       6
Online shopping versus In-store shopping

    We have identified three types of                                              50%
    shoppers:
        1. Those who have shopped                                                  45%                 44%

             online in the last 4 weeks                                                                                                                                      40%
                                                                                                                                                                                                         41%
             (who may also shop in-                                                40%
                                                                                                                                               38%
             store and research online)
        2. Those who do not shop                                                   35%
                                                                                                                                                      33%
                                                                                                                                                                                   33%
             online, shop in-store, but                     % of Australians 14+                                             31%
             do research online                                                    30%
                                                                                                                       28%         28%
        3. Those who do not shop
             online, shop in-store and                                             25%                                                                                                            24%

             do not research online                                                            20%
                                                                                                                                                             20%
                                                                                   20%
                                                                                                                                                                                                                 18%
    40% of Gen Ys are online
    shoppers, compared to 38% of
                                                                                   15%                                                                                                     13%
    Gen Xs, 28% of Baby Boomers                                                          12%
    and 24% of Gen Zs..
                                                                                   10%

    Gen Zs are the most likely to
    shop in-store but research online                                              5%
    (41%).
                                                                                   0%
    Only 13% of Gen Ys shop in-                                                           Pre-Boomers                  Baby Boomers                  Gen X                         Gen Y                Gen Z
    store only and do not research                                                                                                                Generation
    online, compared to 44% of Pre-
    Boomers.                                                                                         Online Shoppers                        Research Online, Shop In-store                       In-store only



© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                       7
Online shopping expenditure

                                                                                                  100%
                                                                                                                 5%                       5%                                              4%                   4%
                                                                                                                                                                  7%                                           1%
                                                                                                                                                                                          6%
                                                                                                                 7%
        The average online                                                                        90%                                     9%                      6%
                                                                                                                                                                                                              14%
        expenditure by online
        shoppers in a four week                                                                                  11%                                                                      17%
                                                                                                  80%
                                                                                                                                                                  17%
        period* is:                                                                                                                       18%



                                                            % of Australian Online Shoppers 14+
                                                                                                                                                                                                              17%
        • Pre-Boomer = $265                                                                       70%            13%
                                                                                                                                                                                          11%

        • Baby Boomers = $313                                                                                                                                     12%
                                                                                                  60%                                     15%
        • Gen X = $308                                                                                                                                                                                        21%
                                                                                                                 24%                                                                      19%
        • Gen Y = $259                                                                            50%
                                                                                                                                                                  22%
        • Gen Z = $203                                                                                                                    21%
                                                                                                  40%                                                                                                         11%
                                                                                                                                                                                          16%
                                                                                                                 15%
        34% of Gen Zs spend less                                                                  30%                                                             13%
        than $50 in online shopping                                                                                                       12%

        in an average four week                                                                   20%
        period.                                                                                                                                                                                               34%
                                                                                                                 25%                                                                      27%
                                                                                                  10%                                     19%                     22%



                                                                                                   0%
        * This is for an average four week                                                                  Pre-Boomers               Baby Boomers               Gen X                Gen Y                   Gen Z
        period in 2011.                                                                                                                                       Generation

                                                                                                         Less than $50    $50 - $99             $100 - $199   $200 - $299   $300 - $799         $800 - $999   $1000 or more




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                              8
Online shopping activities

                                                                                                 80%
        There is not much difference
        between Generations when it                                                                                                                         71%
        comes to only buying from                                                                70%
                                                                                                                                    66%         66%
        Australian online stores.                                                                                                         63%
                                                                                                                                                      61%




                                                           % of Australian Online Shoppers 14+
                                                                                                 60%

        Trust is important when
                                                                                                                                                                                                                                          49%
        choosing a retailer (Australian                                                          50%                                                                                                                                            48%
                                                                                                                                                                                                                                                      45%
        or not) with over 61% of all                                                                                                                                                                                                44%
        the Generations only buying
                                                                                                 40%                                                                                                       38% 39% 39% 37%
        from retailers they know; with
        71% of Gen Z online
                                                                                                                                                                                                     30%
        shoppers agreeing with this                                                              30%                                                                                                                                                        27%
        statement.
                                                                                                        21%                   21%
                                                                                                              20% 20%                                                                20%
                                                                                                 20%                    18%
                                                                                                                                                                                           17%
        Group buying websites, such                                                                                                                                            11%
                                                                                                                                                                         10%
        as Cudo and Scoopon are                                                                  10%                                                                7%
        most popular with Gen Y
        online shoppers .
                                                                                                 0%
                                                                                                       I only buy from Australian   I only buy from online         Visited Group Buying            Used online payment/money       Paid for purchases using
                                                                                                              online stores             retailers I know          Website in average 4 week        transfer system in average 4 credit card online in average 4
        PayPal is more popular with
                                                                                                                                                                            period                          week period                   week period
        Gen Z online shoppers than a                                                                                                                                     Generation
        credit card when paying for
        online shopping.                                                                                         Pre-Boomers                      Baby Boomers                             Gen X                     Gen Y                        Gen Z




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                                                  9
Online shopping activities (continued)

                                                                                                80%



                                                                                                70%                           68%
        eBay is the most popular
                                                                                                                        65%
        shopping website, followed
        by Amazon. 65% of Gen Y

                                                          % of Australian Online Shoppers 14+
                                                                                                60%
        online shoppers visited eBay                                                                              55%

        and 16% visited Amazon in
        an average 4 week period.                                                               50%

                                                                                                            42%

                                                                                                40%
        In terms of researching
        online, price comparison                                                                      32%

        websites, ratings and reviews                                                           30%
        and online catalogues are all                                                                                                                                                                         23%
                                                                                                                                                                                                        21%                    21%
        popular sources of                                                                                                                                          19% 19%
                                                                                                                                                                              21%
                                                                                                                                                                                    19%           19%                                20% 20%
                                                                                                20%
        information.                                                                                                                              16%                                       17%                          16%
                                                                                                                                    14% 14% 15%         14%   15%                                                                              14%

                                                                                                                                                                                                                    9%
                                                                                                10%
        Baby Boomer online
        shoppers are the most likely
                                                                                                0%
        to have read an online
                                                                                                      Visited ebay.com.au           Visited amazon.com         Read ratings/reviews of      Used price comparison        Read online catalogues
        catalogue in an average 4                                                                                                                             products/services before            websites
        week period (21%).                                                                                                                                           purchase
                                                                                                                                                                    Generation

                                                                                                                  Pre-Boomers                 Baby Boomers                          Gen X                     Gen Y                    Gen Z




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                                     10
Smartphones and Mobile shopping

                                                                                                 70%
                                                                                                                            64%


                                                                                                 60%
        Gen Y online shoppers are
        the most likely to own a                                                                                      52%
                                                                                                                                  51%



                                                           % of Australian Online Shoppers 14+
        Smartphone (64%), of which                                                               50%
        only about half are iPhones.
                                                                                                                                                                                                 41%
                                                                                                 40%
        33% of Baby Boomer online
                                                                                                                33%
        shoppers have a                                                                                                                                                                                32%
        Smartphone.                                                                              30%
                                                                                                                                                             29%
                                                                                                                                                                                           27%
                                                                                                                                                       25%

                                                                                                                                                                   21%
        Gen Y online shoppers are                                                                20%
        also the most likely to use                                                                       15%                                    15%
                                                                                                                                                                                     13%                                            14%
        their phone to download an
        application (41%) and                                                                    10%                                       8%
                                                                                                                                                                                                                                          9%
        research a product or service                                                                                                                                          6%                                              6%

        to buy on their mobile phone                                                                                                                                                                                      2%
                                                                                                                                                                                                                     0%
        (14%) in an average four                                                                 0%
        week period.                                                                                   Have a Smartphone as main mobile   Have an Apple iPhone as main    Downloaded an application in average Researched a product or service to
                                                                                                                    phone                         mobile phone            4 week period via main mobile phone    buy in average 4 week period
                                                                                                                                                                     Generation

                                                                                                                 Pre-Boomers                    Baby Boomers                      Gen X                      Gen Y                  Gen Z




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                                    11
Online shopping categories

               Outlined below are the top 20 online shopping categories (from a list of 35) for each Generation:
                            Pre-Boomers                                Baby Boomers                                       Gen X                                     Gen Y                                  Gen Z
#1 Rank        Books/Magazines/New spapers                 Books/Magazines/New spapers                 Music to Dow nload                          Music to Dow nload                   Music to Dow nload
               a Travel product (tickets/accommodation)    a Travel product (tickets/accommodation) Books/Magazines/New spapers                    Show s, Movie tickets, Events etc    Show s, Movie tickets, Events etc
               Alcohol                                     Show s, Movie tickets, Events etc           Show s, Movie tickets, Events etc           Books/Magazines/New spapers          Women's Clothing
               Show s, Movie tickets, Events etc           DVDs                                        a Travel product (tickets/accommodation) a Travel product (tickets/accommodation) Computer Softw are
               DVDs                                        Music to Dow nload                          Toys or Games                               Women's Clothing                     Shoes & Footw ear
               Music to Dow nload                          Alcohol                                     Computer Softw are                          Toys or Games                        CDs
               CDs                                         Computer Softw are                          Women's Clothing                            Computer Softw are                   Books/Magazines/New spapers
               Computer Softw are                          CDs                                         DVDs                                        DVDs                                 Computer Hardw are
               Health products                             Women's Clothing                            Alcohol                                     Small Electrical Goods               Men's Clothing
               Women's Clothing                            Homew ares & Manchester                     Shoes & Footw ear                           CDs                                  Toys or Games
               Small Electrical Goods                      Small Electrical Goods                      Sports Equipment                            Babyw ear & Goods                    Small Electrical Goods
               Computer Hardw are                          Computer Hardw are                          Homew ares & Manchester                     Men's Clothing                       a Travel product (tickets/accommodation)
               Homew ares & Manchester                     Cosmetics/Skincare                          Cosmetics/Skincare                          Shoes & Footw ear                    DVDs
               Shares or financial information             Health products                             CDs                                         Cosmetics/Skincare                   Jew ellery & Watches
               Toys or Games                               Jew ellery & Watches                        Supermarket Shopping                        Computer Hardw are                   Sports Equipment
               Cosmetics/Skincare                          Shoes & Footw ear                           Small Electrical Goods                      Supermarket Shopping                 Home Entertainment equipment
               Pets & Pet products                         Men's Clothing                              Men's Clothing                              Homew ares & Manchester              Supermarket Shopping
               Jew ellery & Watches                        Toys or Games                               Computer Hardw are                          Jew ellery & Watches                 Car parts & Accessories
               Supermarket Shopping                        Car parts & Accessories                     Car parts & Accessories                     Car parts & Accessories              Cosmetics/Skincare
#20 Rank       Large Electrical Goods                      Shares or financial information             Pets & Pet products                         Sports Equipment                     Underw ear, Socks & Hosiery




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                   12
Acquiring and retaining online shoppers



                            The section of the report investigates the digital and traditional advertising channels and marketing tactics
                            retailers could use to acquire and retain online shoppers. Again we will look at this through the lens of
                            different Generations.


                            This section examines the different digital marketing tactics of social media, display advertising and
                            search. It looks at the use of traditional media by the different Generations and examines a number of
                            advertising attitudes, such as the adoption of coupons or competitions.


                            What is clear is that each Generation is unique, requiring different programs of marketing activities to
                            attract and retain them to an online shopping offering.




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                           13
Overall media consumption

        Arguably, digital marketing                                            100%     93%93%
        works best as part of a multi-                                                94%       91%
                                                                                             89%                                                                                                                                                                      87%
        channel campaign. To this                                              90%                                                                                                                           86%
                                                                                                                                                                                                                                                                   87% 87%
                                                                                                                                                                   83%
        end it is worth investigating                                                                                                                                                                           81%
                                                                                                                                                                                                                          76%                                   79%
                                                                                                                                                                                                                  77%
        the different media                                                    80%                                                                                    76%
                                                                                                                                                                                                                            75%73%
                                                                                                                                                                                                                    73%
        consumption patterns the                                                                                                                                         69%                                          70%
                                                                                                                                                                                                                                 68%
                                                                               70%                                    67%
        Generations have.                                                                                                    63%
                                                        % of Australians 14+
                                                                                                                                                                              60%
                                                                                                                           60%                                                                                                                           60%
                                                                                                                  59%
                                                                               60%                                                                                                57%
        Clearly a large proportion of                                                                                                                                                    51%                                                                   51%
        each Generation watch                                                  50%                              46%                                          47%                           46%
                                                                                                                                                                                             44%
        commercial TV on weekdays;
        the Internet is also widely                                            40%                                                                                                                 36%

        adopted, although Pre-                                                                                                                     31%
                                                                               30%                                                        25%
        Boomers exhibit lower                                                                                                           22%
                                                                                                                                                                                                       24%
                                                                                                                                                                                                                                                                                      22%
                                                                                                                                     21%                                                                                                                                                 20%         17%
        adoption rates (51%).                                                  20%                                                                                                                                                                                                          14%   16% 16%
                                                                                                                                                                                                                                                                                     15%      17%
                                                                                                                                                                                                                                                                                                         13%
                                                                                                                                                                                                                                                                                                           9%
        There however is a clear                                               10%
        trend that the older
        Generations are more likely                                             0%




                                                                                                                                                                                                                                                                 Internet at least




                                                                                                                                                                                                                                                                                           Watched Pay TV in
                                                                                                                  Commercial Radio




                                                                                                                                         Been to Cinema in




                                                                                                                                                                   Read Newspaper in




                                                                                                                                                                                         Newspapers in the




                                                                                                                                                                                                                Read any Magazine




                                                                                                                                                                                                                                    Read any Catalogue




                                                                                                                                                                                                                                                                                                                Directory at least
                                                                                         WatchedCommercial




                                                                                                                                                                                                                                                                                                                Used the Yellow
                                                                                                                                                                                         Local/Community




                                                                                                                                                                                                                                                                  Accessed the
                                                                                                                                                                    last 7 days (excl.
        to read newspapers, local




                                                                                                                                                                                                                                                                                            the last 7 days
                                                                                                                                                                                                                                      in last 4 Weeks
                                                                                           TV on weekday




                                                                                                                                           last 4 Weeks




                                                                                                                                                                      Newspapers)
                                                                                                                    on weekday
                                                                                                                    Listened to




                                                                                                                                                                                            last 7 days




                                                                                                                                                                                                                                                                     monthly
                                                                                                                                                                       Community




                                                                                                                                                                                                                   (last issue)




                                                                                                                                                                                                                                                                                                                     monthly
        community papers and




                                                                                                                                                                                               Read
        magazines.

        Cinema and commercial
        Radio seem to be more
                                                                                                                                                                                                   Generation
        popular amongst younger
        Generations.                                                                                         Pre-Boomers                                           Baby Boomers                                       Gen X                                      Gen Y                                         Gen Z



© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                                                                                                                     14
Online advertising

                                                                                 60%


        Gen Zs are the most likely to
        take notice of digital                                                                                                                49%
                                                                                 50%
        advertising when watching
        online videos (39%) or when                                                                                                     42%
                                                                                                                                                                                                                                                         44%
        surfing the net (49%).
                                                                                 40%                            39%
                                                          % of Australians 14+
                                                                                                                                                                                                                                                               35%
                                                                                                                                  33%                                                                                                              34%
        Gen Ys are the most likely to
        respond to advertising with                                              30%                      28%                                                                                                                                28%
        11% of them often clicking on                                                                                       25%
        online ads and 7% of them
        clicking on sponsored links in
                                                                                 20%                                                                                                                                                   19%
        search sites.                                                                               17%
                                                                                                                                                                                                                    15%
                                                                                                                      14%                                                                                                 13%
                                                                                                                                                                                                              13%
                                                                                              11%                                                                   11%

        Gen Xs are the most likely to                                            10%
                                                                                         7%                                                                               8%                7% 7%        8%
                                                                                                                                                                                       6%
        read an email newsletter                                                                                                                               5%                                                               5%
                                                                                                                                                          4%                                        3%
        (15%); whilst Gen Y would be                                                                                                                 3%                          2%

        more responsive to                                                       0%
        personalised emails as 44%                                                     I often notice advertising I often notice advertising I often click on ads when          Clicked on sponsored      Read an email               I'm happy to receive
        of them would be “happy to                                                        when I watch videos         while I surf the net        using the Internet            links on search sites      newsletter                email advertising that is
        receive email advertising that                                                           online                                                                              (eg. Google)                                        relevant to me
        is relevant to me.”                                                                                                                                               Generation

                                                                                                     Pre-Boomers                                Baby Boomers                           Gen X                   Gen Y                               Gen Z




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                                                     15
Social media

                                                                                 80%
                                                                                                               74%
                                                                                                         73%                                      Visited the website in a four week period

        Social media is currently                                                70%
        favoured mostly by Gen Ys                                                                                                           63%
        and Gen Zs. This trend drops
                                                                                 60%
        away as the age of the
        Generation increases.                                                                                                         52%
                                                                                                   49%
                                                                                 50%
                                                          % of Australians 14+



        73% of Gen Ys have visited
        Facebook , 52% have visitied                                             40%
        YouTube and 10% have                                                                                                    33%
        visited Twitter in an average
                                                                                             29%
        four week period.                                                        30%



                                                                                 20%                                      18%
        Gen Ys are also most likely to                                                                                                                                                                                           15%
                                                                                                                                                                                                                                       14%
        have read or contributed to a                                                  11%                                                                                    12%
                                                                                                                                                                        10%                                                10%
        blog in an average four week                                             10%
                                                                                                                     6%                                                                                               7%
        period (15%).                                                                                                                                              5%
                                                                                                                                                                                                          4%
                                                                                                                                                                                                     2%          3%
                                                                                                                                                            2%
                                                                                                                                                       1%                             0%   1%   1%
                                                                                 0%
                                                                                              Facebook                     YouTube                               Twitter                   Chat rooms          Participated in blog activity
                                                                                                                                                            Generation

                                                                                                   Pre-Boomers                    Baby Boomers                                Gen X                  Gen Y                    Gen Z




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                               16
Portals

                                                                                60%

                                                                                                                                                  Visited the website in a four week period
                                                                                                              53%
                                                                                                        52%

                                                                                50%               48%
        When it comes to usage of                                                                                                     45%
        the major portals in an                                                                                                                                   43%
                                                                                                                                                            41%
        average four week period,                                                                                                                                                                       40%
                                                                                40%
        there is quite a difference in                                                                                          37%                                                                                                   37%
                                                         % of Australians 14+
                                                                                                                                                                        35%
        Generation behaviour.                                                               35%                                                                                                   35%

                                                                                                                                            30%                                                                                             30%
                                                                                30%
                                                                                                                                                                                                                                27%
        NIneMSN (excluding hotmail                                                                                                                    26%                     26%
                                                                                                                                                                                            25%               25%
                                                                                                                          24%
        and MSN messenger) is the
        most popular for Gen Zs                                                                                                                                                                                           20%
        (53%), Gen Ys (52%) and                                                 20%
                                                                                      17%
        Gen Xs (48%).
                                                                                                                    11%                                                               11%                           11%

                                                                                10%
        However Telstra/Bigpond is
        the most popular for Baby
        Boomers (41%) and Pre-
        Boomers (26%).                                                          0%
                                                                                      ninemsn (excl hotmail &       news.com.au (Portal)                 Telstra/Bigpond              Fairfax Digital (Portal)              Yahoo!7
                                                                                         MSN messenger)
                                                                                                                                                            Generation

                                                                                                  Pre-Boomers                     Baby Boomers                                Gen X                     Gen Y                     Gen Z




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                                  17
Search

                                                                               90%
                                                                                                          84%   83%
                                                                                                    81%                              Visited the website in a four week period
                                                                               80%

                                                                                             71%
                                                                               70%
        It is no surprise that Google is
        the most widely used search                                            60%
        engine.
                                                        % of Australians 14+



                                                                               50%

        The largest users of Google                                                  42%

        are Gen Ys (84%). It is worth                                          40%
        noting here that Facebook
        has almost caught Google in
                                                                               30%
        terms of penetration of Gen
        Zs and Ys.
                                                                               20%


                                                                                                                                                 10%                11%
        The largest users of Bing are                                          10%                                                       7%
                                                                                                                                                            9%
                                                                                                                                                                                              7%
                                                                                                                                                                                                     8%     8%
                                                                                                                                                                                         6%
        Gen Zs (11%).                                                                                                                                                            4%
                                                                                                                                3%

                                                                               0%
                                                                                               Google Search                                  Bing Search                                Yahoo!7 Search
                                                                                                                                              Generation

                                                                                           Pre-Boomers                Baby Boomers                          Gen X                Gen Y                    Gen Z




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                  18
Advertising attitudes

                                                                                 60%
                                                                                                                                                    57%

                                                                                                                                             53%

        In terms of special                                                                                                            49%                                                                                       50%
                                                                                 50%                                             48%
        offer/discount coupons, Gen                                                                                       47%
        Ys (41%) and Gen Zs (39%)
        are most likely to redeem                                                                         41%
        them.                                                                    40%
                                                                                                                39%                                                                                                        39%
                                                          % of Australians 14+
                                                                                                    36%
                                                                                              33%
        Gen Ys are also the most                                                        30%
        likely to regularly enter                                                30%                                                                                                                                 28%
        competitions “on packets of                                                                                                                                                                            24%
        labels on products” (20%).
                                                                                                                                                                                   20%                   20%
                                                                                 20%
                                                                                                                                                                             16%
        Over 47% of the Generations
                                                                                                                                                                                         13%
        “like to try free samples they                                                                                                                                 11%
        offer in supermarkets”, with                                             10%
                                                                                                                                                                  7%
        Gen Zs the most likely (57%).
        This is supported by the fact
        that Gen Zs are also the most
        likely to “look for new                                                  0%
        experiences every day”                                                         I often redeem coupons to get    I like to try the free samples they   I often enter competitions which are   I look for new experiences every day
                                                                                          discounts or special offers           offer in supermarkets           on packets or labels on products
        (50%)
                                                                                                                                                       Generation

                                                                                               Pre-Boomers                    Baby Boomers                          Gen X                      Gen Y                       Gen Z



© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                            19
Tailoring your offering




                            This section of the report examines a number of attitudinal statements relevant to technology and
                            shopping. The reason we have chosen these two is obvious, because online retail is where technology
                            meets shopping. We also look at technology adoption of certain technologies that underpin online
                            shopping, such as broadband adoption, Smartphone ownership and tablet ownership.


                            This section will provide businesses a deeper understanding of what people are looking for when they
                            shop and use technology. Ultimately this should provide businesses with new knowledge to help them
                            tailor their online shopping offer and experience to the different Generations.




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                           20
Technology attitudes

                                                                                     90%
        Gen Ys and Zs have the                                                                                                                                                             85%
        greatest proportion of                                                                                                                                                                   80%
                                                                                     80%
        technology adopters, with
        42% of each group saying “I                                                                                                                              70% 70%
        go out of my way to learn                                                    70%                                                                                   66%
                                                                                                                                                                                                       67%
                                                                                                                                                           64%
        everything I can about new
        technology.”                                                                 60%
                                                                                                                                                    55%                          56%

                                                              % of Australians 14+                                                            52%
                                                                                                                                                                                                             50%
        Almost 1/3rd of Baby                                                         50%
        Boomers are technology                                                                              42% 42%
        adopters, but 80% believe                                                    40%                                                38%
        that “technology is changing                                                                                                                                                                               34%
        so fast, it’s difficult to keep up                                                        28% 29%                         29%
                                                                                     30%
        with it.” Not surprisingly only                                                     26%
                                                                                                                                                                                                                          24%
        1/3rd of Gen Zs who have                                                                                            19%
        grown up with the internet                                                   20%
                                                                                                                                                                                                                                15%
        agree with this statement.
                                                                                                                                                                                                                                           9%
                                                                                     10%                                                                                                                                              8%        8%

        Interestingly over half of all
        Australians 14+ are worried                                                  0%
        about invasion of privacy                                                          I go out of my way to learn    Computers and technology    I'm worried about invasion of I find technology is changing          I would like to use the
                                                                                           everything I can about new    give me more control over my    my privacy through new     so fast, it's difficult to keep up Internet, but I am intimidated
        through new technology; with                                                                technology                       life                      technology                         with it                by the complexity of it all
        70% of Baby Boomers and                                                                                                                                  Generation
        Gen Xs agreeing with this
        statement.                                                                                    Pre-Boomers                         Baby Boomers                           Gen X                       Gen Y                     Gen Z




© 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02
                                                                                                                                                                                                                                                        21
Roy Morgan Research - Online Shopping in Australia
Roy Morgan Research - Online Shopping in Australia
Roy Morgan Research - Online Shopping in Australia
Roy Morgan Research - Online Shopping in Australia
Roy Morgan Research - Online Shopping in Australia
Roy Morgan Research - Online Shopping in Australia

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Roy Morgan Research - Online Shopping in Australia

  • 1. Online Shopping in Australia - A Generational View Roy Morgan Research Single Source Survey January 2011 - December 2011 Please direct any queries to andrew.braun@roymorgan.com Roy Morgan Research – 401 Collins Street, Melbourne VIC 3000 Telephone: 03 9224 5116 © Roy Morgan Research
  • 2. About Roy Morgan Research Single Source The Roy Morgan Single Source Survey is a continuous survey of 50,000+ respondents aged 14+ per annum (and has been running for over 20 years). Single Source 360 degree consumer profile It is an Australia-wide survey of both city and country areas and thus is representative of the entire Australian population 14+. Business decisions Sports & Leisure Travel & Tourism Automotive From this survey we gain a 360 degree profile of an individual, by collecting Retail stores Home services information about their demographics, shopping behaviour, technology and Retail products media consumption, financial situation, household composition, as well as Utilities 1000’s of attitudinal statement about who they are and what makes them tick. Beverages Personal Care Groceries Of relevance to this report, is the Retail Monitor, where we ask respondents: Healthcare Fast Food Telecommunications 1. What products have they purchased in-store in the last 4 weeks, how much Consumer Banking & Finance have they spent and with whom; electronics 2. What products have they purchased online in the last 4 weeks, how much have they spent and with whom; and Demographics, My Home, Attitudes to life 3. A number of attitudinal statements about why they shop and what influences their shopping habits. Media consumption – TV, Print, Radio, Internet, Cinema, Outdoor, Catalogue, Mail Product/service ownership & consumption All data in this report is from the Single Source survey period January 2011 to December 2011. © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 1
  • 3. Online Shopping in Australia – An overview The Single Source Retail Monitor provides us with the following high-level insights for the year ending December 2011: • 53.7% of Australian’s 14+ have ever purchased something over the internet • In an average four week period in 2011 • 30.7% of Australian’s 14+ shop online • $1.6b* is spent online • eBay is the top shopping website with 31.2% of Australian’s 14+ visiting it • 6.6% of Australian’s 14+ have used group buying websites • Generation Ys are the most likely to shop online with 40% having shopped online in an average four week period * This includes expenditure on the following categories: Books/Magazines/Newspapers; Music to Download using the Internet; Shows, Movie tickets, Events etc; Travel product (tickets/accommodation); Computer Software; Computer Hardware; CDs; DVDs; Women's Clothing; Men's Clothing; Children's Clothing; Underwear, Socks & Hosiery; Shoes & Footwear; Babywear & Goods; Cosmetics/Skincare; Jewellery & Watches; Fragrance/Perfume; Sports Equipment; Toys or Games; Adult Entertainment; Supermarket Shopping; Alcohol; Health products; Home Entertainment equipment; Large Electrical Goods; Small Electrical Goods; Communications Equipment; Homewares & Manchester; Furniture; Hardware; Plants & Garden; Pets & Pet products; Car parts & Accessories; Other products © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 2
  • 4. Online shopping categories Outlined below are the top 10 online shopping categories (from a list of 35): Category Number of Australian’s 14+ Average spend per category in purchasing online in an average 4 an average 4 week period ($) week period Books/ Magazines/ Newspapers 1,072,000 $67.90 Music to Download 1,033,000 $22.40 Shows, Movie tickets, Events etc 1,026,000 $153.80 Travel Products (Tickets/ Accommodation) 859,000 $489.60 Computer Software 529,000 $87.40 DVD’s 519,000 $60.30 Women’s clothing 495,000 $112.40 Toys or games 469,000 $88.40 CD’s 405,000 $45.70 Small Electrical Goods 357,000 $118.40 © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 3
  • 5. Introduction to this report This report examines online shopping through the lens of different Generations. We examine how Generations compare in their take-up of online shopping, what product categories they buy online and their online expenditure. This report also investigates the digital and traditional media which different Generations consume. This is useful for retailers so they can develop targeted marketing programs to grow and retain online shopping customers. We also examine a number of technology and shopping attitudes by Generation. These include: a person’s willingness to adopt new technologies, their attitudes to security and privacy, whether they go out of their way for bargains and whether shopping is a major part of their lifestyle. This section also considers some technologies that underpin online shopping, such as broadband penetration and Smartphone adoption. © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 4
  • 6. Online shopping in Australia by Generations This section of the report focuses on the online shoppers within each Generation, examining how their different demographics impact on their online shopping spend, the categories in which they purchase online, whether they prefer Australian online retailers, their mobile shopping habits and whether they participate in group buying. © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 5
  • 7. Generations Generation Z, also known as Generation M A pre-boomer is a person (for multitasking), Generation C (for who was born before the Connected Generation), the Net Generation, Post-World War II baby Generation X is the largest of or the Internet Generation). This is a common 1,833,000 boom, i.e. pre 1946. name for the group of people born from 1991. 2,975,000 the Generations with 27% of the Australia population 14+ (or 5,027,000 people). Gen X 9.9% have had a marginal increase 16.0% of almost 1% point since 2008, from 26.1% A Baby Boomer is a person who was born during the Post-World 4,580,000 War II baby boom between the years 1946 and 1960. Generation Z is the smallest 24.6% but fastest growing segment, Generation Y, also known as the 22.5% having grown from 5.9% of Millennial Generation, Generation 4,187,000 the population (14+) in 2008 Next, are the demographic cohort to 9.9% of the population in following Generation X. Roy Morgan Research defines Gen Ys 2011. as having a birth date from 1976 27.0% to 1990. Since 2008, Baby Boomers have been in decline, now Generation X, is the generation born after the representing 22.5% of the World War II baby boom ended. Roy Morgan Research defines Gen Ys as having a birth date population (14+) compared to 5,027,000 from 1961 to 1975. 25.8% in 2011. Pre-Boomers Baby Boomers Gen X Gen Y Gen Z Note: Generational definitions are sourced from Wikipedia © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 6
  • 8. Online shopping versus In-store shopping We have identified three types of 50% shoppers: 1. Those who have shopped 45% 44% online in the last 4 weeks 40% 41% (who may also shop in- 40% 38% store and research online) 2. Those who do not shop 35% 33% 33% online, shop in-store, but % of Australians 14+ 31% do research online 30% 28% 28% 3. Those who do not shop online, shop in-store and 25% 24% do not research online 20% 20% 20% 18% 40% of Gen Ys are online shoppers, compared to 38% of 15% 13% Gen Xs, 28% of Baby Boomers 12% and 24% of Gen Zs.. 10% Gen Zs are the most likely to shop in-store but research online 5% (41%). 0% Only 13% of Gen Ys shop in- Pre-Boomers Baby Boomers Gen X Gen Y Gen Z store only and do not research Generation online, compared to 44% of Pre- Boomers. Online Shoppers Research Online, Shop In-store In-store only © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 7
  • 9. Online shopping expenditure 100% 5% 5% 4% 4% 7% 1% 6% 7% The average online 90% 9% 6% 14% expenditure by online shoppers in a four week 11% 17% 80% 17% period* is: 18% % of Australian Online Shoppers 14+ 17% • Pre-Boomer = $265 70% 13% 11% • Baby Boomers = $313 12% 60% 15% • Gen X = $308 21% 24% 19% • Gen Y = $259 50% 22% • Gen Z = $203 21% 40% 11% 16% 15% 34% of Gen Zs spend less 30% 13% than $50 in online shopping 12% in an average four week 20% period. 34% 25% 27% 10% 19% 22% 0% * This is for an average four week Pre-Boomers Baby Boomers Gen X Gen Y Gen Z period in 2011. Generation Less than $50 $50 - $99 $100 - $199 $200 - $299 $300 - $799 $800 - $999 $1000 or more © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 8
  • 10. Online shopping activities 80% There is not much difference between Generations when it 71% comes to only buying from 70% 66% 66% Australian online stores. 63% 61% % of Australian Online Shoppers 14+ 60% Trust is important when 49% choosing a retailer (Australian 50% 48% 45% or not) with over 61% of all 44% the Generations only buying 40% 38% 39% 39% 37% from retailers they know; with 71% of Gen Z online 30% shoppers agreeing with this 30% 27% statement. 21% 21% 20% 20% 20% 20% 18% 17% Group buying websites, such 11% 10% as Cudo and Scoopon are 10% 7% most popular with Gen Y online shoppers . 0% I only buy from Australian I only buy from online Visited Group Buying Used online payment/money Paid for purchases using online stores retailers I know Website in average 4 week transfer system in average 4 credit card online in average 4 PayPal is more popular with period week period week period Gen Z online shoppers than a Generation credit card when paying for online shopping. Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 9
  • 11. Online shopping activities (continued) 80% 70% 68% eBay is the most popular 65% shopping website, followed by Amazon. 65% of Gen Y % of Australian Online Shoppers 14+ 60% online shoppers visited eBay 55% and 16% visited Amazon in an average 4 week period. 50% 42% 40% In terms of researching online, price comparison 32% websites, ratings and reviews 30% and online catalogues are all 23% 21% 21% popular sources of 19% 19% 21% 19% 19% 20% 20% 20% information. 16% 17% 16% 14% 14% 15% 14% 15% 14% 9% 10% Baby Boomer online shoppers are the most likely 0% to have read an online Visited ebay.com.au Visited amazon.com Read ratings/reviews of Used price comparison Read online catalogues catalogue in an average 4 products/services before websites week period (21%). purchase Generation Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 10
  • 12. Smartphones and Mobile shopping 70% 64% 60% Gen Y online shoppers are the most likely to own a 52% 51% % of Australian Online Shoppers 14+ Smartphone (64%), of which 50% only about half are iPhones. 41% 40% 33% of Baby Boomer online 33% shoppers have a 32% Smartphone. 30% 29% 27% 25% 21% Gen Y online shoppers are 20% also the most likely to use 15% 15% 13% 14% their phone to download an application (41%) and 10% 8% 9% research a product or service 6% 6% to buy on their mobile phone 2% 0% (14%) in an average four 0% week period. Have a Smartphone as main mobile Have an Apple iPhone as main Downloaded an application in average Researched a product or service to phone mobile phone 4 week period via main mobile phone buy in average 4 week period Generation Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 11
  • 13. Online shopping categories Outlined below are the top 20 online shopping categories (from a list of 35) for each Generation: Pre-Boomers Baby Boomers Gen X Gen Y Gen Z #1 Rank Books/Magazines/New spapers Books/Magazines/New spapers Music to Dow nload Music to Dow nload Music to Dow nload a Travel product (tickets/accommodation) a Travel product (tickets/accommodation) Books/Magazines/New spapers Show s, Movie tickets, Events etc Show s, Movie tickets, Events etc Alcohol Show s, Movie tickets, Events etc Show s, Movie tickets, Events etc Books/Magazines/New spapers Women's Clothing Show s, Movie tickets, Events etc DVDs a Travel product (tickets/accommodation) a Travel product (tickets/accommodation) Computer Softw are DVDs Music to Dow nload Toys or Games Women's Clothing Shoes & Footw ear Music to Dow nload Alcohol Computer Softw are Toys or Games CDs CDs Computer Softw are Women's Clothing Computer Softw are Books/Magazines/New spapers Computer Softw are CDs DVDs DVDs Computer Hardw are Health products Women's Clothing Alcohol Small Electrical Goods Men's Clothing Women's Clothing Homew ares & Manchester Shoes & Footw ear CDs Toys or Games Small Electrical Goods Small Electrical Goods Sports Equipment Babyw ear & Goods Small Electrical Goods Computer Hardw are Computer Hardw are Homew ares & Manchester Men's Clothing a Travel product (tickets/accommodation) Homew ares & Manchester Cosmetics/Skincare Cosmetics/Skincare Shoes & Footw ear DVDs Shares or financial information Health products CDs Cosmetics/Skincare Jew ellery & Watches Toys or Games Jew ellery & Watches Supermarket Shopping Computer Hardw are Sports Equipment Cosmetics/Skincare Shoes & Footw ear Small Electrical Goods Supermarket Shopping Home Entertainment equipment Pets & Pet products Men's Clothing Men's Clothing Homew ares & Manchester Supermarket Shopping Jew ellery & Watches Toys or Games Computer Hardw are Jew ellery & Watches Car parts & Accessories Supermarket Shopping Car parts & Accessories Car parts & Accessories Car parts & Accessories Cosmetics/Skincare #20 Rank Large Electrical Goods Shares or financial information Pets & Pet products Sports Equipment Underw ear, Socks & Hosiery © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 12
  • 14. Acquiring and retaining online shoppers The section of the report investigates the digital and traditional advertising channels and marketing tactics retailers could use to acquire and retain online shoppers. Again we will look at this through the lens of different Generations. This section examines the different digital marketing tactics of social media, display advertising and search. It looks at the use of traditional media by the different Generations and examines a number of advertising attitudes, such as the adoption of coupons or competitions. What is clear is that each Generation is unique, requiring different programs of marketing activities to attract and retain them to an online shopping offering. © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 13
  • 15. Overall media consumption Arguably, digital marketing 100% 93%93% works best as part of a multi- 94% 91% 89% 87% channel campaign. To this 90% 86% 87% 87% 83% end it is worth investigating 81% 76% 79% 77% the different media 80% 76% 75%73% 73% consumption patterns the 69% 70% 68% 70% 67% Generations have. 63% % of Australians 14+ 60% 60% 60% 59% 60% 57% Clearly a large proportion of 51% 51% each Generation watch 50% 46% 47% 46% 44% commercial TV on weekdays; the Internet is also widely 40% 36% adopted, although Pre- 31% 30% 25% Boomers exhibit lower 22% 24% 22% 21% 20% 17% adoption rates (51%). 20% 14% 16% 16% 15% 17% 13% 9% There however is a clear 10% trend that the older Generations are more likely 0% Internet at least Watched Pay TV in Commercial Radio Been to Cinema in Read Newspaper in Newspapers in the Read any Magazine Read any Catalogue Directory at least WatchedCommercial Used the Yellow Local/Community Accessed the last 7 days (excl. to read newspapers, local the last 7 days in last 4 Weeks TV on weekday last 4 Weeks Newspapers) on weekday Listened to last 7 days monthly Community (last issue) monthly community papers and Read magazines. Cinema and commercial Radio seem to be more Generation popular amongst younger Generations. Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 14
  • 16. Online advertising 60% Gen Zs are the most likely to take notice of digital 49% 50% advertising when watching online videos (39%) or when 42% 44% surfing the net (49%). 40% 39% % of Australians 14+ 35% 33% 34% Gen Ys are the most likely to respond to advertising with 30% 28% 28% 11% of them often clicking on 25% online ads and 7% of them clicking on sponsored links in 20% 19% search sites. 17% 15% 14% 13% 13% 11% 11% Gen Xs are the most likely to 10% 7% 8% 7% 7% 8% 6% read an email newsletter 5% 5% 4% 3% (15%); whilst Gen Y would be 3% 2% more responsive to 0% personalised emails as 44% I often notice advertising I often notice advertising I often click on ads when Clicked on sponsored Read an email I'm happy to receive of them would be “happy to when I watch videos while I surf the net using the Internet links on search sites newsletter email advertising that is receive email advertising that online (eg. Google) relevant to me is relevant to me.” Generation Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 15
  • 17. Social media 80% 74% 73% Visited the website in a four week period Social media is currently 70% favoured mostly by Gen Ys 63% and Gen Zs. This trend drops 60% away as the age of the Generation increases. 52% 49% 50% % of Australians 14+ 73% of Gen Ys have visited Facebook , 52% have visitied 40% YouTube and 10% have 33% visited Twitter in an average 29% four week period. 30% 20% 18% Gen Ys are also most likely to 15% 14% have read or contributed to a 11% 12% 10% 10% blog in an average four week 10% 6% 7% period (15%). 5% 4% 2% 3% 2% 1% 0% 1% 1% 0% Facebook YouTube Twitter Chat rooms Participated in blog activity Generation Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 16
  • 18. Portals 60% Visited the website in a four week period 53% 52% 50% 48% When it comes to usage of 45% the major portals in an 43% 41% average four week period, 40% 40% there is quite a difference in 37% 37% % of Australians 14+ 35% Generation behaviour. 35% 35% 30% 30% 30% 27% NIneMSN (excluding hotmail 26% 26% 25% 25% 24% and MSN messenger) is the most popular for Gen Zs 20% (53%), Gen Ys (52%) and 20% 17% Gen Xs (48%). 11% 11% 11% 10% However Telstra/Bigpond is the most popular for Baby Boomers (41%) and Pre- Boomers (26%). 0% ninemsn (excl hotmail & news.com.au (Portal) Telstra/Bigpond Fairfax Digital (Portal) Yahoo!7 MSN messenger) Generation Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 17
  • 19. Search 90% 84% 83% 81% Visited the website in a four week period 80% 71% 70% It is no surprise that Google is the most widely used search 60% engine. % of Australians 14+ 50% The largest users of Google 42% are Gen Ys (84%). It is worth 40% noting here that Facebook has almost caught Google in 30% terms of penetration of Gen Zs and Ys. 20% 10% 11% The largest users of Bing are 10% 7% 9% 7% 8% 8% 6% Gen Zs (11%). 4% 3% 0% Google Search Bing Search Yahoo!7 Search Generation Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 18
  • 20. Advertising attitudes 60% 57% 53% In terms of special 49% 50% 50% 48% offer/discount coupons, Gen 47% Ys (41%) and Gen Zs (39%) are most likely to redeem 41% them. 40% 39% 39% % of Australians 14+ 36% 33% Gen Ys are also the most 30% likely to regularly enter 30% 28% competitions “on packets of 24% labels on products” (20%). 20% 20% 20% 16% Over 47% of the Generations 13% “like to try free samples they 11% offer in supermarkets”, with 10% 7% Gen Zs the most likely (57%). This is supported by the fact that Gen Zs are also the most likely to “look for new 0% experiences every day” I often redeem coupons to get I like to try the free samples they I often enter competitions which are I look for new experiences every day discounts or special offers offer in supermarkets on packets or labels on products (50%) Generation Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 19
  • 21. Tailoring your offering This section of the report examines a number of attitudinal statements relevant to technology and shopping. The reason we have chosen these two is obvious, because online retail is where technology meets shopping. We also look at technology adoption of certain technologies that underpin online shopping, such as broadband adoption, Smartphone ownership and tablet ownership. This section will provide businesses a deeper understanding of what people are looking for when they shop and use technology. Ultimately this should provide businesses with new knowledge to help them tailor their online shopping offer and experience to the different Generations. © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 20
  • 22. Technology attitudes 90% Gen Ys and Zs have the 85% greatest proportion of 80% 80% technology adopters, with 42% of each group saying “I 70% 70% go out of my way to learn 70% 66% 67% 64% everything I can about new technology.” 60% 55% 56% % of Australians 14+ 52% 50% Almost 1/3rd of Baby 50% Boomers are technology 42% 42% adopters, but 80% believe 40% 38% that “technology is changing 34% so fast, it’s difficult to keep up 28% 29% 29% 30% with it.” Not surprisingly only 26% 24% 1/3rd of Gen Zs who have 19% grown up with the internet 20% 15% agree with this statement. 9% 10% 8% 8% Interestingly over half of all Australians 14+ are worried 0% about invasion of privacy I go out of my way to learn Computers and technology I'm worried about invasion of I find technology is changing I would like to use the everything I can about new give me more control over my my privacy through new so fast, it's difficult to keep up Internet, but I am intimidated through new technology; with technology life technology with it by the complexity of it all 70% of Baby Boomers and Generation Gen Xs agreeing with this statement. Pre-Boomers Baby Boomers Gen X Gen Y Gen Z © 2012 Written approval must be obtained from Roy Morgan Research before circulation or publication of this data outside the client’s institution. PTA02 21