Ethnic Australians spend more at grocery stores than Australian-born shoppers: Nielsen study

Ethnic Australians spend more at grocery stores than Australian-born shoppers: Nielsen study

Report calls for multicultural selling proposition that targets Asian-born consumers

In the next five years, ethnic-Australians will contribute a total of $18.7 billion (or 28 per cent) in sales for the grocery sector, a figure that represents an increase of $4.4 billion in incremental revenue. Asian-born consumers make up 57 per cent of this growth.

Findings from a just-released Nielsen’s Ethnic-Australian Consumer Report which reveal that spend on FMCG retailing by ethnic Australians is growing at a faster rate than their Australian-born counterparts clearly indicates the origin of the ethnic-Australian consumer is altering dramatically. Today, Asian-born Australians now represent more than 10 per cent of the overall population—more than doubling over the past 20 years.

Engaging with Asian-born consumers has also assumed importance. For example, Asians’ food preferences are very different. They devote almost a third (32 per cent) of their grocery spend to fresh food (compared to Australian-born consumers who allocate 26 per cent of their spend on fresh); and they also have a strong skew toward seafood, fresh herbs and healthier food options in general.

Some brands have already begun working to cater to the needs of Asian-born consumers, but judging by the report there is increasing opportunity in this area.

The report for instance says that 75 per cent of Asian-born Australians say they would shop more at mainstream supermarkets if there was a greater international selection, while almost half say their purchasing decisions are influenced by retailer catalogues and brochures.

The report also suggests that Asian-born consumers are more likely to read product labels, inclined to purchase healthier ingredients, are influenced by comments and reviews posted online, and are willing to pay extra for well-known brands. Around a third said their food choices are influenced by their children.

The multicultural selling proposition for marketers and advertisers benefits all Australian consumers seeking unique flavours and products. Meeting the needs of Asian-Australians is clearly the key in uncovering the growth opportunity that exists.


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