effectively engage with local consumers of South Asian or Mainland Chinese descent.  As a result, these diasporic groups have tended to favour international luxury and premium brands over Australian businesses.  Bastion Insights general manager for cross-cultural insights, Isabel Zhang said that cultural knowledge was key for brands in authentically engaging with Asian Australian communities. “Many Australian brands and organisations remain in a very transactional relationship with our multicultural CALD [culturally and linguistically diverse] communities; this will not lead to any conversions,” Zhang said. Cutting through According to Annabel Pittendrigh, a client executive at Bastion Insights, many Australian retailers have missed the mark when it comes to customising and tailoring their marketing and communication efforts to resonate with these diasporic communities. In order to do so effectively, she stressed the importance of understanding the various factors and intricacies that inform their consumer behaviour. In discussing this research, she explained that a strong proportion of people from South Asia tend to be single- or double-income earners with no children (known as SINKs and DINKs) and hold strong educational or career aspirations – with over 50 per cent of migrants from India and Pakistan holding skilled or working visas In contrast, the Mainland Chinese diaspora tend to be more advanced in their careers when arriving in Australia, often have families and are often financially secure. Further, according to this research, she explained that Chinese Australians are more likely to incorporate luxury items in their everyday purchases.  Pittendrigh said that luxury Australian retailers have, on the whole, not made significant headway in building strong awareness with these communities. “A lot of Australian brands have had it [relatively] easy with [non-migrants] considering local brands first before going global,” she said. “They would have seen their parents buy from them, and purchasing from Australian retailers would have been ingrained in them. This is in contrast with the experience of migrants, who might have had exposure to – and awareness of – other retailers, who have successfully pushed the boundaries and better catered to their needs. “There’s more work [to be done] by Australian brands to cut through with these groups,” she said. Driving awareness and conversion Despite these challenges, there is strong commercial incentive for premium and local retailers to meaningfully engage with South Asian and Mainland Chinese Australians, due to the strong demand for luxury goods.  According to the report, 92 per cent of South Asian Australians have contemplated buying from luxury brands, with 68 per cent of them converting this into purchases. This compares to 80 per cent among Chinese Australians, with a 90 per cent conversion rate. Bastion Insights client coordinator Vedant Bhusari noted that department stores Myer and David Jones are considered by many to be operating in luxury retail. However, research showed that there are key differences in how South Asian and Mainland Chinese Australians perceive David Jones and Myer – with the former group more likely to see these department stores as offering a premium shopping experience compared to the latter. He believes that this is partly due to the maturity of the luxury and premium retail market in Mainland China, which has a strong presence of international and premium brands. Regarding the alcohol category, Bhusari observed that certain brands have been more effective than others in generating awareness and conversion among these community groups. For instance, Penfolds has effectively resonated with many Mainland Chinese Australians, with Bhusari attributing its relative success to their efforts in engaging a diverse range of customers in Australia and abroad. He said the brand emphasised values such as tradition, prestige, and heritage, developed relevant partnerships, and celebrates events like Lunar New Year. “It’s about educating these communities about the origins and production methods, because customers care about these things, and it [in turn] helps to drive awareness,” Bhusari said. Key lessons Regarding Australian brands that have successfully engaged with culturally and linguistically diverse communities, Pittendrigh pointed to Country Road as a strong example, with the brand said to be promoting values consistent with modern and contemporary Australia. However, she believes there is still work to be done, with awareness still relatively low among Mainland Chinese and South Asian communities in Australia.  And with cost-of-living pressures ever-present, she believes that it’s increasingly important for retailers to effectively engage with different communities, including – but not limited to – Asian Australian migrants. “When it comes to luxury goods, they are spending,” Pittendrigh said. “For Australian brands, they need to work a lot harder to capture their attention and reap the benefits.”