Australian Mums response to Reserve Bank

Overview

On Federal Budget Eve, the Reserve Bank served up a reminder to households saying it’s a good idea to cut back on your spending during challenging economic times, noting the whole point of the RBA raising interest rates is to get people to spend less so inflation cools.

Research just conducted by Mumpower found that Australian Mum Shoppers, who control or influence approximately 85% of household discretionary spend in family households, have already heeded this message with 94% stating they are likely to cut back their household spending in some way over the coming 6 months.

The research found that some categories are set to weather current conditions and these spending cuts better than others.  Specifically:

• Discretionary “enjoyment” categories are going to feel the pinch the most, with the majority of Mums intending to cut back their spend in the next 6 months on Eating out (69%) and Travel/Holidays (51%).
• Spring / Summer Fashion sales will also be challenged and brands will be competing harder for share of the fashion dollar with 50% of Mums saying they will cut back on their Fashion spend.
• Categories least likely to be impacted by cuts in spend include both discretionary and non-discretionary categories, specifically: Health & Wellbeing Products / Services (16%); Baby/Children products / Services (under $100) (15%), Financial Services / Insurance (Home, Health, Car etc) (14%); Utilities (electricity, gas, water etc) (13%); Education/Training (10%) and Telecommunications / Internet Providers (8%).
• Mums are prioritising spend on their children with only 1 in 4 stating they will cut back on spend of Baby / children products / services >$100, compared to half of all Mums (2 in 4) who say they will cut back on their Fashion spend.