Australia: a nation of Ostriches, according to M&C Saatchi consumer sentiment survey

A year ago, 63% of Australians thought wehad avoided the worst of the global financial crisis and were optimistic aboutthe outlook of the national economy, but that has dropped to 41 per cent thisyear – just ahead of 2008, when the world was in the grip of the GFC,according to the third annual M&C Saatchi annual Consumer Sentiment study. 

The study tracks the prevailing attitudes to spending and classifies them into eight major spending groups: from the positive Ostriches who carry on regardless, to the Crash Dieters who are actively seeking any way to cut back.

Despite the drop in confidence, Ostriches stillcomprise the largest group at 21%. Justifiers, the people who spend, but onlygiven the right reasons and circumstances, have grown from 17 to 20%.

“Whilethe majority of people are now quite ambivalent about the national economy, we’restill a nation of ostriches,” M&C Saatchi head of strategy Colin Jowellsaid.

“Fora long time people have been getting negative messages about the economy thatnever happened so they’ve learned to de-couple their own situation from theeconomy. Financial stability is an attitude, rather than a measure of actualwealth.”

Amongthe key changes in the past year is a shift away from saving to measuredspending, with the number of Scrimpers – who want to maintain their lifestylebut at a lower cost – falling from 18 to 12%.

Thestudy shows a move away from scrimping behaviour into justifying behaviour,meaning advertisers should include messages about quality in their marketing tohelp provide a reason to spend, rather than focusing on discounting, Mr Jowellsaid.

“Peopleare saying ‘I’m prepared to spend so long as there’s a good reason to’.

“This is great news for retailers: prestige brands oreven discounters who want to inject some quality and margin back into theirbusiness.”

Womenare more frugal, savvy shoppers who are more likely to be Crash Dieters (whoare cutting back on everything) and Treaters (those trying to cut back butallowing the occasional indulgence), while men are more likely to be Ostrichesor Justifers.

“Ironically,men can be more vulnerable to marketing messages largely because they claimthey’re more rational,” Mr Jowell said. “If someone’s looking for areason to spend, marketing messages can give them many good ones.”

“Butreflecting that overarching uncertainty, demand for major home renovations orincreases in mortgages will remain stable.”