Australians dramatically reduce online spending

By Stan Beer
Friday, 14 November 2008 13:17

Market

The global economic tsunami has bitten deeply into the hip pockets of Australian consumers with a new survey claiming that 35% have reduced their online spending. What's more the indications are that online spending is likely to decrease further over the next six months.
                   

The survey, conducted by StollzNow Research and commissioned by RightNow Technologies, polled 500 Australian adults and found that:

·      35% of them have already decreased both online and retail spending
·      In the next six months 35% are likely to decrease spending in retailers and 29% will decrease online spending
·      36% will buy the same number of Christmas presents as last year but at a lower spend per person, 27% will try to buy fewer presents

The survey also found that the Federal Government’s ‘Economic Security Strategy’ whereby families, pensioners and carers will receive one-off payments, may not help stimulate the economy; when asked what they would do with $1,000 if they were given it tomorrow – 61% of Australian’s would save it, only 17% would spend it.

Commenting on the survey’s findings, Brett Waters, RightNow’s vice president, Asia Pacific-South, said: “There are tough times ahead for both companies and consumers. Consumers are concerned that the dollar in their pocket isn’t going as far as it used to, so they are more selective about whom they spend with and focusing on finding better deals.”

The survey interviewed 500 respondents from the online panel of Research Now / Valued Opinions in October 2008. Quotas were set for age, gender, and state of residents so that the findings are representative of the total Australian population. The confidence level is plus or minus 4.3% at the 95% confidence interval.

The figures don't bode well for discretionary purchases in the technology area this Christmas, such as games consoles, iPods and other portable music players and big screen TVs.