We all know the value of brand building, right? For retail businesses, it’s an essential part of driving consumer awareness and growth. But consumer behaviours have changed over the past few years – which means retailers’ go-to brand building strategies probably need a rethink.

The economic headwinds that have blown up since Covid have hit businesses in the retail sector particularly hard, likewise their customers: 75 per cent of Australian consumers are now curbing spending to save money, according to new research by Shopify.

But the YouGov research suggests new kinds of consumers are emerging – and from these, we’ve identified new consumer categories at which brand building exercises can be targeted.

The findings, outlined in Shopify’s Australian Retail Report 2023, suggest that there are six new consumer persona types active in the Australian market today.

Each of these possess their own traits attuned to the current economic climate. These six personas are:

• The Value Valuer – As the largest persona group identified (32 per cent of all consumers surveyed), they have a tendency to prioritise value for money over other purchasing decision-making factors.
• The Loyal Local – This persona is the second-largest consumer persona group identified (24 per cent). They care about value for money, but tend to prioritise quality over price.
• The Savings Seeker – These consumers represent 22 per cent of shoppers. They are the most stressed overall, and hence the most price-sensitive above any other deciding factor.
• The Mindful Moneybags – This persona represents 9 per cent of consumers. While they are the wealthiest, they also care the most about sustainability.
• The Picky Purchaser – Representing 8 per cent of Australians, the Picky Purchaser tends to have favourite brands and are the most brand loyal by a considerable margin.
• The Social Shopper – Representing just 3 per cent these use digital channels such as social media to discover products before shopping online.

Understanding these new consumer personas and the workings of their decision-making processes when it comes to shopping can give retail businesses a valuable lever to tune brand building activities across each target segment for greater cut through and growth.

Best value wins

Value for money, most notably present among Value Valuer consumers, appears to be a priority for the majority of Australian consumers at some level. With this in mind, retailers that choose to invest in products, marketing measures and brand strategies that help to communicate a value for money message are more likely to appeal to a wider portion of the consumer market.

One example of this approach can be found in a very specific product promise by luggage retailer July. By offering a lifetime warranty on its suitcases, July successfully communicates a value for money guarantee to customers without needing to overtly adjust its pricing structure. This tactic has cemented the brand’s popularity among consumers who value good value.

With 95 per cent of retailers passing on at least some of the increased cost of doing business in the current economic climate onto consumers, finding ways to instil a value for money message through product selection, positioning and promises — without competing on price — can provide an effective point of differentiation.

Sustainability sells

But value for money is just one message that retailers can work with to build a brand narrative designed to appeal to target consumer segments.

It’s no secret that most people tend to make decisions that reflect their self-image and personal tastes, so with over two-fifths (41 per cent) of Australians claiming to prefer sustainable products, retailers have the opportunity to establish a more environmentally-friendly product range to communicate specific shared values with consumers.

Digging a little deeper, however, we can be far more targeted. A preference for sustainable products is most notable among the Mindful Moneybags consumer persona. Our research revealed that the majority of this group are Millennials, and that they are statistically less likely to prefer shopping in-store. With this information, retailers can target their marketing efforts with greater precision, prioritising online channels to communicate their sustainability message.

Loyalty bonus

Perhaps most notably, over half of all consumers (53 per cent) are likely to become loyal to a brand if it offers them consistently low prices or promotions. These particular drivers are most prevalent among Loyal Local and Savings Seeker consumers, giving retailers the chance to build brand loyalty through special sales events targeting older Australians — a prominent market segment within both personas.

More broadly, such an approach is likely to have some appeal to the 75 per cent of all consumers that have opted to cut back on spending to save money, but over half of which are still treating themselves by spending money on discretionary items. Understanding the most prominent behavioural traits of each of the new consumer personas means retailers can make their value props and messaging resonate more effectively with target audiences’ mindsets.

Just about every senior retail leader surveyed in Shopify’s research said their organisation has been impacted by macroeconomic pressures (fully 99 per cent), crafting the right message to build a brand in the mind of the right consumer has never been more important.

There’s a lot more in the report. You can download it here.