More and more Kiwis are delaying buying a product with over half of them considering ‘value for money’ as the main driver to decide on a purchase, research shows.
According to Mediahub’s The New Value Economy study in New Zealand, 75 per cent of high income-earners and 43 per cent of low-income earners have delayed a purchase.
Moreover, 51 per cent of high-income earners and 40 per cent of low-income earners skipped a product purchase.
Over the past year, 36 per cent of Kiwis have purchased groceries less regularly.
The research states that 54 per cent of New Zealanders view ‘value for money’ as the most important factor when choosing a brand or product.
“Many New Zealand brands and businesses across most sectors and categories are doing it tough right now. For many, it is a war of attrition,” said Hugo Winter, GM at Mediahub NZ.
“It has allowed us to have many informed and valuable conversations with brands to help them navigate the current climate and shape strategies to redefine their value to budget-conscious Kiwis.”
Linda Fagerlund, chief strategy officer at Mediahub ANZ, said that the trade-offs at both low and high-income levels are resulting in declining purchases from high-end or luxury brands to mid-range and lower-cost brands.
The study showed that New Zealanders view the cost-of-living crisis and resulting financial-related stresses, as their primary concern.
“Brands need to apply empathy and not shy away from the realities of the cost-of-living crisis and the anxious age we are living in when planning how best to connect with their audiences, regardless of income,” said Fagerlund.
