Understanding the Future Consumer
Transcript of Understanding the Future Consumer
Generational insights to inform future strategies towards 2030
Understanding the Future ConsumerAugust 2020
AnalyseAustralia
03Understanding the Future Consumer02 Understanding the Future Consumer
Table of contentsUnderstanding the Future Consumer report is produced by:
McCrindle Research Pty Ltd
Suite 105, 29 Solent Circuit
Norwest NSW 2153
AUSTRALIA
mccrindle.com.au
+61 2 8824 3422
Authors: Mark McCrindle, Ashley Fell, Kevin Leung, Peter Chi
Data visualisation and design: Hendrik Zuidersma
Title: Understanding the Future Consumer
Publisher: McCrindle Research - mccrindle.com.au
URL: analyseaustralia.com
ISBN: 978-0-6486695-6-2
© McCrindle Research Pty Ltd 2020
This report is copyright. Fair dealing for the purpose of private study, research, criticism or review is permitted under the
Copyright Act. In addition, the Publisher grants permission to use images and content from this report for commercial and
non-commercial purposes provided proper attribution is given such as ‘Understanding the Future Consumer’
By Mark McCrindle, Ashley Fell, Kevin Leung, Peter Chi, is used by permission, McCrindle Research.
The changing consumer landscape 04
Generation Alpha 06
Generation Z 10
Generation Y 14
Generation X 18
Towards 2050 26
The Global outlook of the future 28
What does this mean for leaders? 30
How can we help 32
05Understanding the Future ConsumerUnderstanding the Future Consumer04
Case study
In 1996 the Eastman Kodak Company recorded one of their best years with a valuation of $30 billion USD, and revenues of $16 billion USD. Yet 16 years later it filed for bankruptcy.
In 1888, founder George Eastman put the first model of Kodak camera to market. His proposition? “You press the button, we do the rest.” He created the first technological wave of handheld cameras. For the next century Kodak brought the handheld camera experience from a novelty used by few, to become the ‘Kodak Moment’ used by all.
What Kodak failed to see, was that another S curve was emerging.
Kodak were convinced that analogue cameras and film would continue to appeal to the masses. They didn’t predict that the current generation at the time with the largest spending power (Gen X – 31% of income in 2005)2 were craving emerging technology, embracing the difference in their parent’s (Baby Boomer’s) ‘Kodak moment’ lifestyles.
Alongside other challenges, the Kodak company did not respond to the generational context and failed to provide a product sought after by the current market.
The S Curve: new technology adoption rates
A decade of change has seen the consumer landscape shift from mass market to personalisation and customisation, from a life of bricks-and-mortar shopping to $27.5 billion dollars in online goods spend.
Organisations that have thrived in the past decade are those who have understood their consumers and pre-empted the trends. In 2020 we are living in a time of constant change. Technology is developing faster than ever before and is shaping consumption habits in ways previous generations have not experienced. More prevalently, in the current COVID-19 environment, organisations are now adapting to change in mere weeks instead of years.
Today's consumers are increasingly prioritising simplicity, personalisation and customisation. The challenge for organisations is to not just communicate their key brand messages well, but to listen to and understand the unique needs of each generation. They then need to respond in a timely manner to set themselves apart from competitors. To set up organisations to thrive in the current market it is more important than ever to gain insight into today’s consumers. What are their defining characteristics? What are their expectations and where will they be in the next decade?
This report is for business leaders, future thinkers and communication strategists. It is for those who want to understand the consumer of the future and set their organisation up for success.
The changing consumer landscape Early
Adopters
Analogue cameras
Digital cameras
Mass Consumption
1996 Kodak valued at
$30 BILLION USD
2012 Kodak declares
BANKRUPTCY
06 07Understanding the Future Consumer Understanding the Future Consumer
Generation AlphaIf organisations want to not only exist in a decade’s time,
but thrive and flourish, then understanding Generation
Alpha is imperative.
GEN
ERATION
ALPH
A
Understanding the Future Consumer Understanding the Future Consumer08 09
While they are currently the youngest citizens, Generation Alpha have brand influence and purchasing power beyond their years. They heavily influence their parents purchasing decisions, shape the emerging social media landscape, and are the future generation of digital shoppers.
Currently there are three million Generation Alpha in Australia and more than 2.8 million are born globally every week.
In a decade’s time, Generation Alpha will be well into their teens and will be highly educated and entrepreneurial. It is imperative for leaders and marketers alike to understand this burgeoning generation as they begin their careers.
Towards 2030
GEN ALPHA ARE EARLY ADOPTERS WITH ONLINE INTERACTION SEAMLESSLY
INTEGRATED INTO THEIR WORLD.
2 IN 5 AUSTRALIAN CHILDREN AGED BETWEEN 6 – 13 OWN OR USE A MOBILE PHONE, WHICH HAS
BEEN STEADILY INCREASING SINCE 2013 (41%) .3
Shaped by technology
Gen Alpha began being born in 2010 (the same year the iPad was released) and are coming of age in unprecedented times of change. They are part of an unintentional global experiment where screens and voice assistants are placed in front of them from the youngest age as pacifiers, entertainers and educational aids. Generation Alpha are ‘up-ageing’ (growing up faster and at a younger age) which results in a greater level of sophistication not only physically, but technologically.
The voice that shapes the future
Generation Alpha are well positioned to be at the forefront of technological integration. They will transition from being a voice of influence in the household, to technological trendsetters with their economic power to match.
Personalisation as an expectation
Throughout their life technology has existed to serve them, providing instant gratification to everything they seek. Alphas are growing up in households of smart devices, apps delivering food, and personalisation - where everything from Nutella jars to story books can be ordered featuring their name. Algorithms and personalisation are an integrated and expected part of their consumer experience.
Influencing household purchasing decisions
While this generation has yet to earn any personal income, they have a strong voice in purchasing decisions and are environmentally and sustainability minded. 81% of parents have had their actions or consumption decisions influenced to be more environmentally aware by their Gen Alpha children.4
Generation Alpha
Customised
Generation ZGeneration Y
Descriptive Personalised
Generation Alpha
GEN ALPHA ARE BORN GLOBALLY EVERY WEEK
WHEN THEY HAVE ALL BEEN BORN (2025) THEY WILL NUMBER MORE THAN TWO BILLION – THE LARGEST
GENERATION IN THE HISTORY OF THE WORLD
2,800,0002,000,000,000
2025
GEN
ERATION
ALPH
A
TODAY
CURRENT AGE
POPULATION
% LIVING IN CAPITAL CITY
% OF THE WORKFORCE
2030
Demographic profile
0 - 10
3,251,125
69%
0%
6 - 20
5,514,434
70%
6%
14% of Aus population 18% of Aus population
TOD
AY
2030
BY 2030, GEN ALPHA WILL COMPRISE
6% OF THE WORKFORCE
AND ALMOST ONE IN FIVE AUSTRALIANS
10 11Understanding the Future Consumer Understanding the Future Consumer
Generation ZAuthenticity and sustainability are vital to
engaging this generation.
GEN
ERATION
Z
Understanding the Future Consumer Understanding the Future Consumer12 13
Towards 2030
Digital integrators
95% of Gen Z own a smartphone and this technology is seamlessly integrated into their lives. On average 74% of Gen Z’s time is spent online (outside of school or work). The digital is increasingly replacing the physical which is fundamentally changing their experiences of the everyday.
Established in their earning years
In the next ten years, there will be twice as many Gen Z’s in the workforce than in 2020. With Gen Z comprising 34% of the total working population they will be the largest generation of active workers in Australia.
Mobility and flexibility are essential
Gen Z are mobile and agile and on average are expected to have 18 jobs across six careers in their lifetime. One in three young Australians state they have a ‘side-hustle’ and have embraced the gig economy10. The ‘nine-to-five’ of the previous generations will cease to exist as technology and lifestyle preferences pave way for an outcomes-based workplace that rewards output, not time spent at work. Gen Z will hold multiple jobs at any given time, and will likely be both employees of an organisation and contributors to the gig economy.
Global connections and social influence
Through technology, Gen Z experience cultural and social trends globally like never before. No matter the location, Gen Zs are influenced by the same movies, music, fashion and food. Today’s youth are extensively connected to and shaped by their peers. Social proofing comes through what their peers recommend and the distance between fan and celebrity, regardless of geography has narrowed.
Sustainability as a lifestyle
Gen Z believe in protecting the planet through their purchasing decisions with many taking steps to change their behaviour because of concerns they have for the environment.
Visual communication is an expectation
YouTube outstrips Google as the number one search engine for this generation, because why would they read it when they can watch it? The visual summary drives higher engagement than the written narrative. Watched on a mobile of course, bite sized, personalised information defines this generation.
Generation Z are almost exclusively the children of Generation X. Since 2019, there are more Australians born since 1980 than before it. This means that Gen Y (born from 1980 to 1994), Gen Z (born from 1995 to 2009) and Gen Alpha (born since 2010) now comprise more than half the population. Gen Z are digital integrators. They are too young to remember the arrival of digital technology, and have grown up and in many cases, have been significantly socialised by screen-based devices.
Generation Z
TODAY 2030
Demographic profile
11 - 25
4,955,157
70%
17%
21 - 35
6,286,476
76%
32%
19% of Aus population 21% of Aus population
GEN
ERATION
Z
OF GEN Z'S AVERAGE TIME IS SPENT ONLINE (OUTSIDE OF SCHOOL OR WORK).6
OF GEN Z WOULD MAKE A PURCHASE BASED ON A SOCIAL MEDIA RECOMMENDATION7
TOP SOCIAL MEDIA PLATFORM
BY USAGE OF TEENAGERS8
95%
74%
73%
OF GEN Z OWN A SMARTPHONE5
% LIVING IN CAPITAL CITY
POPULATION
CURRENT AGE
% OF THE WORKFORCE
85% YOUTUBE
72% INSTAGRAM
69% SNAPCHAT
55% 42% 41%TAKEN STEPS TO
REDUCE THEIR OWN USE OF SINGLE-USE
PLASTICS
INCREASED THEIR PURCHASE OF ORGANIC
AND/OR LOCALLY PRODUCED FOOD
STOPPED/REDUCED THE REGULARITY IN WHICH THEY PURCHASE ‘FAST
FASHION’ 9TOD
AY
2030
14 15Understanding the Future Consumer Understanding the Future Consumer
Generation YPrioritising lifestyle and experiences over
the accumulation of more.
GEN
ERATION
Y
Understanding the Future Consumer Understanding the Future Consumer16 17
Towards 2030
A generation of mature, ethically conscious spenders
Sustainability is more than just a buzz word; it is fast becoming a framework within which to live by. Many consumers today are choosing to engage with and align themselves with organisations who live and breathe their Corporate Social Responsibility. By 2030, Gen Y will comprise the largest consumer demographic, and retailers will need to have sustainability as part of their branding and business model.
The new face of retail
The effect of a highly innovative, technological and social generation will shape and design the retail landscape in the future. In 2030:
• Online retail will become more efficient in packaging and delivery to reduce waste in order to meet the ethical standards brought about by younger generations.
• Shopping centres will still have their place, but will transform into ‘hubs’ fostering community and provide places of social interaction.
• The sharing economy will continue to become embedded into our way of life. Renting, or paying a subscription fee for goods such as transport or clothing, rather than owning outright, will suffice the needs of many consumers.
Prioritising experiences over possessions
The great Australian dream of home ownership has felt out of reach for many Gen Ys, and as a result this generation has more of a propensity to focus on lifestyle pursuits and on valuing people and experiences over acquiring real estate.
The tension of family and career
Gen Y are looking to exceed family and professional expectations – juggling work life balance and professional progression. The proportion of families with children younger than five, where both parents are working full time increased from 14% to 21% over the last decade. Dual income earners are also on the rise, with an increase of 17% over the last ten years.
Generation Y, also known as Millennials, are a generation who have delayed their traditional life markers, studied later into life and commenced their working years in greater levels of debt than ever before. Often labelled as KIPPERS (Kids In Parents Pockets Eroding Retirement Savings), this generation are currently in their family forming years, entered the workforce during the GFC and are forging ahead in their careers during the COVID-19 pandemic.
Generation Y
TODAY
CURRENT AGE
POPULATION
TOD
AY
20302030
Demographic profile
26 - 40
5,679,826
74%
34%
36 – 50
6,066,488
73%
31%
22% of Aus population 20% of Aus population
GEN
ERATION
Y
BOTH PARENTS WORKING FULL TIME WITH CHILDREN UNDER 5
% LIVING IN CAPITAL CITY
% OF THE WORKFORCE
GEN YS TOOK MORE OVERSEAS TRIPS IN 2019 (3,119,918) THAN ALL AUSTRALIANS TOOK IN 1997 (3,040,278)
1987 TODAY
Females
Males
1987 TODAY
MEDIAN AGE OF MARRIAGE
MEDIAN AGE FOR A MOTHER AT THE BIRTH OF HER FIRST CHILD
31.426.8
AVERAGE HOUSE PRICES SYDNEY
2009 TODAY
21%14%
42%
37%
36%
of millennials said they have begun or deepened a business relationship because they perceive a company’s products or services to have a positive impact on society and/or the environment.
have stopped or lessened a business relationship because of the company’s ethical behaviour.
have started/deepened a relationship because they believed a company was ethical.
32.4
30.5
27.6
25.2
AVG. FULL-TIME ANNUAL INCOME 11
1975 1995 TODAY
5x 6x 13x
18 19Understanding the Future Consumer Understanding the Future Consumer
Generation XSimplicity as a service is essential for a
generation who are caring both up and down.
GEN
ERATION
X
Understanding the Future Consumer Understanding the Future Consumer20 21
Generation X has the unique trait of taking a dual caring role, ‘sandwiching’ them between the need to care for their dependent children and their ageing parents. Gen X value services which simplify caring for people they love and can save them time.
Towards 2030
The new downagers
Having lived their formative years in the 20th Century and most of their adult years in the 21st, this generation are a unique hybrid of traditional, structural, and analogue approaches combined with the adaptive, collaborative, and digital thinking of today.
Generation X are poised to become ‘downagers’ – where age is just a number and they feel and act far younger than their age would expect. They value travel, lifestyle, social connection and adapt quite easily to new technology. Generation X will easily utilise services or products that will save them time and money so they can experience their own retirement painlessly.
The sandwich generation with increasing responsibility
Time poor, but in the wealthiest stage of their lives, Generation X will be caught in the middle of the family dynamic where they make choices for their parents as well as their children, whilst navigating the senior years of their careers.
Their experience as early adopters to technology in their formative years will resurface, armed with the spending power to match. Many will opt for a combination of luxury and innovation to ‘keep up with the Joneses’ but also fit with their busy lifestyles.
Expect autonomous vehicles, smart phones and internet-of-things devices to fulfil a burgeoning need to take care of others, while looking good.
Generation X
TODAY 2030
Demographic profile
41 - 55
4,818,744
68%
29%
51 - 65
4,753,666
66%
24%
19% of Aus population 16% of Aus population
OF MOTHERS WITH CHILDREN BETWEEN SIX AND 14 YEARS ARE CURRENTLY EMPLOYED IN THE WORKFORCE AT SOME CAPACITY14
From against ‘the Man’ to being ‘the Man’
Having grown up with a healthy dose of MTV and heroes of the counter-culture of authority (Bon Jovi, Freddy Mercury, Angus Young, to name a few), the ‘slackers’ have now emerged as leaders and managers to many organisations globally.
The oldest of Generation X have had more than 30 years in the workplace. In this time they have worked to establish their careers and as the Baby Boomers move into retirement many are stepping into the C suite or Executive roles.
As John Mayer the musician (and Gen Xer – born 1977) said, ‘One day our generation will rule the population’ and Australia now has a Gen X Prime Minister in The Hon Scott Morrison.
CURRENT AGE
POPULATION
% LIVING IN CAPITAL CITY
% OF THE WORKFORCE
75%
50YRSIS THE AVERAGE AGE OF PEOPLE WORKING AS CEOS IN AUSTRALIA
GEN
ERATION
X
The shift in wealth and income
Currently Generation X have an equal share of the nation’s wealth in comparison to their demographics. Boomers are the best off financially, having around double the share in national wealth compared to their population size. They also have the highest average income, showing a person’s middle-aged years as their highest earning years.
Over the next few decades, we will see the older generations pass on much of their wealth. By the time they move from the growing to the spending side of this accumulation, it would have exceeded the $3 trillion level. Therefore, the decades ahead will see the biggest intergenerational wealth transfer in Australia’s history and many of the younger generations will be the main beneficiaries.
The original dual-income couple
Gen X were the first to make dual income earners the norm, reinventing the concept of the working family.
TOD
AY
2030
22 23Understanding the Future Consumer Understanding the Future Consumer
Baby Boomers & BuildersAn increasingly large market of late adopters looking
for modern solutions for a comfortable retirement.
BABY BO
OM
ERS & BUILD
ERS
Understanding the Future Consumer Understanding the Future Consumer24 25
Towards 2030
Redefining retirement
While Baby Boomers are currently more active in the workforce for their age than those before them, the next decade will see a changing of the guard in the workforce. The youngest of the Baby Boomers will sail past 65 and ease out of the workforce, leaving a very significant knowledge, labour and leadership gap for the following generations to take up.
But that doesn’t mean a quiet retirement. The reality is that Baby Boomers are living longer, more active in the workplace and are staying actively involved with their children and grandchildren more than any previous generation. Boomers will continue to be the most accommodating, supportive and financially endowing of their children’s generation which leads to a hive of activity in ten years.
Highly adaptable, digital consumers
Baby Boomers may not be early adopters in the smart phone age but show no indication they are laggards either. They have adapted to more technology in their lifetime, been resilient across more economic and social cycles (and still counting) and responded to more change than any prior generation.
In the next ten years Baby Boomers and Builders will continue this trend, adapting to change and integrating it into their lifestyles.
Living longer, working harder
When Australia’s Age Pension was introduced in 1909, life expectancy at birth was 57. Today it exceeds 80, averaged across males and females. Australians have gained 25 years of life expectancy in the last 100 years. Or three months of life for every 12 months of time!
65 is the new 50
Today’s Baby Boomers are the ultimate downagers, redefining life stages, and reinventing retirement. They’re buying and selling property later in life and remaining active in the workforce later than ever before. This is a response to the improved life and health realities.
Baby Boomers & Builders
TODAY 2030
Demographic profile
56+
6,811,654
61%
19%
66+
5,170,890
61%
6%
26% of Aus population 17% of Aus population
BABY BO
OM
ERS & BUILD
ERS
Tough early experiences followed by years of unmatched prosperity forged the eldest two generations in our nation. Baby Boomers and Builders have adapted to more technology in their lifetime, been resilient across more economic and social cycles and have responded to more change and trends than any prior generation.
AUSTRALIANS AGED 65 AND OVER HAVE A WORKFORCE
PARTICIPATION RATE OF
BABY BOOMERS AND BUILDERS COMPRISE 34% OF DIGITAL PURCHASES, WHICH HAS GROWN FROM 25% IN 2016.
1 IN 3 BABY BOOMERS (31%) WILL INCREASE THEIR DIGITAL PURCHASES POST COVID-19.17
CURRENT AGE
POPULATION
% LIVING IN CAPITAL CITY
% OF THE WORKFORCE
LIFE EXPECTANCY 16
1920
2006
TODAY
TODAY
61 YEARS
8%
81 YEARS
13%
TODAY 3.9 MILLION BABY BOOMERS AND BUILDERS ARE ELIGIBLE TO RECEIVE
THE PENSION.
BY 2030 THAT WILL INCREASE TO 4.27 MILLION
AUSTRALIANS.
THERE ARE CURRENTLY OVER HALF A MILLION (517,812) AGED 85 AND
OVER.
BY 2030 THAT WILL INCREASE
TO 735,000.
34%
TOD
AY
2030
Understanding the Future Consumer Understanding the Future Consumer26 27
1990
MEDIAN AGE
2020 2030 2050
32 36 36 38 Engaging the generations of the future
Towards 2050Ageing society
25.8 MILLION
40 MILLION
Australia has a population of more than 25.8 million, by 2050 it is predicted to be
40 million.
When looking generationally, our youngest generation (Alpha) comprise 14% of our total population, but will be the largest
generation in 2030 (20%).
2030 will see the emergence of a new generation (Gen Beta will be born between 2026 and 2040)
and 2050 will see the birth of Generation Gamma (born between 2041 to 2055).
Currently, at the retirement age of 65, the average male can expect to live to 85, and female to
88. Based on these longevity gains, by the time Generation Alpha reach this age, the average life
expectancy will be in the mid-90s.
% of Australians by Generation
TODAY
2050
Alpha
13%
14%
19%
19%
22%
20%
19%
18%
27%
15% 10% 4%
Gamma
Z
Beta
Y
Alpha
X
Z Y X Boomer
Builders & Boomers
Builder + Boomer Gen X Gen Y Gen Z Alpha Beta
Marketing
Radio and TV Mass market channels Social media Digital influencers Automated algorithms Virtual influencers
Technology
Colour TV The internet Facebook Smartphones Internet of Things Autonomous vehicles
Payments
Cash Credit and loans Physical card Online payments Digital card Block chain
Personalisation
Brand loyalty Brand switchers Descriptive Customised Personalised Predictive
Movers and
shakers
Bill Gates Elon Musk Mark Zuckerberg Greta Thunberg ? ?
Learning
Thinkers Questioners Experiencers Adapters Integrators Co-creators
Understanding the Future Consumer Understanding the Future Consumer28 29
1 China 1,439,323,774
2 India 1,380,004,385
3 United States of America 331,002,647
4 Indonesia 273,523,621
5 Pakistan 220,892,331
As globalisation becomes the norm, we need to not only understand the consumers on our shores, but also those outside of it. By 2030, our youngest generation, Gen Alpha will comprise one-fifth of the global population (19%), growing faster in developing nations. Generation Z will be largest generation (24%), with some already making their mark on the global workforce.
The Global outlook of the future2020
The next decade will be fast and full of opportunity. Forward thinkers will already notice the next wave of early consumers – Generation Beta, the children of Generation Z will emerge. The African continent will continue to grow, while first world mainstays such as Japan and Italy begin to show signs of an ageing population. Generation Alpha will overtake Z as the largest generation (23%) and enter the workforce.
2030
Alpha (0 to 10) 1,472,757,774
Z (11 to 25) 1,839,077,550
Y (25 to 40) 1,728,362,768
X (41 to 55) 1,399,701,738
Boomer & Builder (56+) 1,354,898,899
1 India 1,503,642,327
2 China 1,464,340,150
3 United States of America 349,641,876
4 Indonesia 299,198,430
5 Nigeria 262,977,344
new Beta (0 to 5) 811,958,652
Alpha (6 to 20) 1,995,589,917
Z (21 to 35) 1,818,676,077
Y (36 to 50) 1,686,714,664
X (51 to 65) 1,312,179,148
Boomer & Builder (66+) 923,368,913
1
4
2
53
1
23
4
5
Africa Asia EuropeSouth
AmericaNorth
America Oceania
Alpha 31% 17% 12% 17% 13% 18%
Z 30% 23% 16% 25% 19% 22%
Y 20% 23% 20% 23% 21% 21%
X 11% 19% 21% 18% 19% 18%
Boomers/ Builders 8% 17% 31% 17% 28% 22%
Africa Asia EuropeSouth
AmericaNorth
America Oceania
Beta 16% 8% 6% 8% 7% 9%
Alpha 34% 22% 16% 22% 17% 22%
Z 23% 21% 16% 22% 20% 20%
Y 15% 21% 20% 21% 20% 19%
X 8% 17% 20% 16% 17% 15%
BB 4% 11% 22% 11% 19% 14%
Top 5 countries by population Top 5 countries by populationPopulation by generations
Population by generations
% of continent by generation % of continent by generation
Global population: 7,794,798,729 Global population: 8,548,487,371
Top countries by generation Beta Alpha Z Y X BB
2030 2020 2030 2020 2030 2020 2030 2020 2030 2020 2030
1 India India India India India India China China China China China
2 China China China China China China India India India India India
3 Nigeria Nigeria Nigeria Indonesia USA USA USA USA USA USA USA
4 Pakistan Pakistan Pakistan Pakistan Indonesia Indonesia Indonesia Indonesia Indonesia Japan Japan
5 Indonesia Indonesia Indonesia USA Pakistan Brazil Brazil Brazil Brazil Russia Brazil
31Understanding the Future ConsumerUnderstanding the Future Consumer30
Predicting trends by knowing your generations
We are on the cusp of a new technological revolution. Within your industry there will be smaller waves of innovation. As business leaders you are charged with the balancing act of knowing whether your wave is peaking or a new one is forming, and whether your customers are going to be amongst those waves.
Understanding your consumer is the compass that enables your business to stay relevant and competitive. A strong understanding means that your sales, marketing and product teams are aligned and can bring about the most appealing brand messages and product designs that fulfil your customer’s needs.
Demographics is the glue that holds data together
Data is the oil of the 21st Century. Big data and machine learning mean that nearly every company can gain billions of data points on their prospective customers. Information to the most granular level can be bought and built to profile your customers.
Generational studies provide a macro-level foundation that underpins consumer profiling. It contains the consistent drivers that compel individuals and their peers.
How to make demographic data usefulThe Australian Bureau of Statistics contains a wealth of data and it can be easy to get lost amongst all the spreadsheets and releases.
Here are three principles that we use to guide our demography.
What does this mean for leaders?
Understanding generational nuances plays an increasingly important role in the process of
developing strategies, with more diversity now existing between the generations than ever before.
For business leaders and marketers, generational segmentation is a logical first step.
– MARK MCCRINDLE
Where
Geographic analysis of ABS information can be categorised in a range of ways. Understand that
national, state, LGA, suburb and granular data may exist, and select the level that is most relevant for
your analysis.
What
The ABS has technical definitions for its variables – for example, is a family the same as a household? Be sure to understand the variable (no matter how innocuous it seems). Definitions can be found in the
ABS Classifications Index.
When
Think about the analysis of any data in a relevant area over time. Look into historical and future
projections for the data to reveal the key trends over time. Past releases and forecasts may exist.
33Understanding the Future ConsumerUnderstanding the Future Consumer32
How to use data analytics to understand customer segments
In a time of uncertainty, knowing key demographic insights allows us to lead with confidence, and make informed, evidence-based decisions.You may have anecdotal evidence to guide your next business decision, but know a sophisticated level of analysis is needed on a large volume of data before making a commitment.
There is no shortage of information out there ranging from the Australian Bureau of Statistics, to state population projections and industry specific reports. But drawing insights from complex datasets may become a challenging exercise for even a seasoned business leader.
We discover the insights, tell the story, and guide the journey
For more than a decade, McCrindle has been helping provide a clearer picture by using data to inform strategic planning and mission-critical decisions. All the tools, methods and processes we have developed are used to explore and interpret the unknown and bring clarity to complexity. We want you to help lead confidently towards 2030 with our demographic skills and expertise.
Our Site Analysis not only identifies your current target markets, but where they will be in the future. We don’t just provide facts; we bring the data to life with engaging visual insights to tell the story and guide the journey.
How can we help
Methodology
The Future Consumer of Australia is based on quantitative research, as well as
scoping research and data analytics.
National demographic data is collected from the Australian Bureau of Statistics.
Global demographic data is collected from United Nations World Population
Prospects.
Future predictions utilise existing data that has been extrapolated using internal
projections.
References
1. Australia Post, Inside Australian online shopping, 2019
2. Lesonsky, R (2014) Gen X: How to Market to the Forgotten Generation,
American Express, accessed 30 July, 2020 <https://www.americanexpress.
com/en-us/business/trends-and-insights/articles/gen-x-how-to-market-to-the-
forgotten-generation/>
3. 2020, Kids and mobiles: how Australian children are using mobile phones,
Australian Communications and Media Authority, accessed 30 July 2020
<https://www.acma.gov.au/publications/2019-11/report/kids-and-mobiles-how-
australian-children-are-using-mobile-phones>
4. McCrindle, national survey of parents, 2020
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<https://www.statista.com/statistics/730101/australia-smartphone-ownership-
by-age/>
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Always-On Mindset, Commscope, accessed 30 July 2020 <https://www.
commscope.com/press-releases/2017/commscope-research-on-gen-z-tech-
intimates-reveals-an-always-on-mindset/>
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30 July 2020 <https://www.alabamamediagroup.com/2018/03/07/gen-z-
spending-habits-infographic/>
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media-technology-2018/>
9. Deloitte, Global Millennial Survey, 2020
10. Triple j Census for Young People, 2018
11. Australian Bureau of Statistics 2019 Average Weekly Earnings, Australia, Nov
2019 cat. No 6302.0, ABS, Canberra
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