Catalogues turbocharge spending spree

This year’s Christmas will see retailers spruiking discounts to persuade shoppers to get out their wallets, says the Australian Catalogue Association (ACA) – good news for the catalogue printing industry with its talent for getting special offers in front of consumers’ noses.

While Australian Bureau of Statistics data shows a rise in sales over the last six months, with October figures for clothing and footwear up by one per cent and department stores bolstered by 0.8 per cent, a recent Deloitte report forecasts that margins will remain flat as December draws to a close as retailers offer up discounts to boost consumer spending.

Kellie Northwood, executive director of the ACA, says catalogues are just the ticket for retailers as an affordable and effective medium for advertising to consumers. She says, “ACA’s industry report released earlier this year found that 85 per cent of Australians are happy to receive catalogues, and 73 per cent of Australians said that catalogues helped them to find bargains and save money.

“As retailers face tough competition, this medium remains one the most effective communication channels to consumers, with proven return on investment.”

The results are backed by a recent Australia Post study, which found that Australians feel themselves to be more receptive to catalogues and flyers than other advertising channels – including television and radio.

Australians may be noticing more brochures arriving in their mailbox this year; the ACA says economic reports showing consumer confidence is beginning to lift are now driving retailers to send out catalogues across all market segments, particularly in grocery and discount variety.

Northwood says, “’Food retailers realise the difficulty many families face at this time of year and are offering great deals in the lead up to Christmas, especially on higher cost items such as meat, taking the pressure off cash strapped consumers.”

She adds that in recent months the ACA has seen a shift in how and when retailers are communicating with their consumers, with a more personalised and relevant approach to specific households. This change may bode well for next year’s figures.

She says, “Talking and meeting with retailers, I see firsthand the changes in marketing approach being adopted as we approach the end of the year. Retailers are using savvy approaches to discounting, ensuring they have a solid understanding about what delivers better returns, while meeting consumer demand.

“Being more specific and timely with catalogue price reductions and promotions will help retailers to see a lift in sales. This shift in marketing approach and strategy aimed to deliver results in increased returns as we enter first quarter of 2014.”

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