Australians are willing to pay more to buy from small businesses over larger competitors this holiday season, new research from GoDaddy has revealed.
The report found that 55% of shoppers surveyed aim to have gift shopping for the festive season completed ahead of December, with seven in 10 reporting that, despite cost-of-living pressures, they’re willing to spend more with smaller retailers over large corporations.
Seasonal shopping competition heating up
Competition for consumer spending is hotting up, in particular around the key sales dates in the festive calendar. A fifth of consumers (21%) reported doing the bulk of their gift buying on Black Friday, rising to nearly a third (32%) amongst 18-24 year olds.
With a fifth of Australians (20%) now buying gifts for between six and 10 friends and family members each Christmas, nearly half (48%) are finding out about the best shopping deals through social media ads. Online cut-through is key for retailers targeting sales-savvy shoppers, with nearly two-thirds of those under 34 (62%) and over half of 35-44 year olds (59%) reportedly finding their best festive shopping deals online.
This resonates with the challenges and focus of small business owners. According to GoDaddy’s Venture Forward, a research initiative that quantifies the impact online microbusinesses have on their local economies, over a third (36%) of entrepreneurs said that marketing was one of the biggest challenges when setting up their business. Meanwhile, a fifth (21%) of microbusiness owners have prioritised investment into social media, ads and promotion in recent months.
Competing for customers is also one of the biggest sources of ongoing stress for small business owners, with over a quarter (26%) of entrepreneurs saying that remaining competitive on pricing, marketing and attracting customers is part of their biggest headaches.
It’s beginning to look a lot like ChristmAIs
However, it has never been cheaper or easier to set up your own business. A quarter (25%) of small business owners in Australia reported needing less than $1,000 to get their companies up and running.
Importantly, small businesses can benefit from the use of new technologies for efficiencies and connecting with customers. Artificial intelligence (AI) is one of the tools increasingly helping in a competitive market, with just over of three in 10 (33%) Australian entrepreneurs using AI to support their small business.
AI-powered tools have the potential to help entrepreneurs get online quickly and easily, lowering the barriers to entry. However, it is also helping with the sticky points around marketing and attracting customers. Nearly four in 10 (38%) entrepreneurs are using AI for marketing, using tools to help with content creation for social media posts, and nearly a third (32%) are using it to gain business or market insights to boost sales.
GoDaddy’s AI-powered customisable experience, GoDaddy Airo™, helps entrepreneurs create and enhance their online presence by finding a perfect domain name and building a website in just a few minutes, including designing a business logo, and more.
“The festive season has long become synonymous with gift giving, and we’re seeing that despite the cost-of-living pressures, Australians are happy to carry on with festive gift buying. Tamara Oppen, vice president developed English markets for GoDaddy, said.
“With consumers increasingly making purchasing decisions based on what they see on their daily scroll of social media, it’s never been more important for small businesses to be front of mind and top of the screen.”
“We know that marketing and content creation can be a challenge, and at GoDaddy, we support entrepreneurs and microbusiness owners providing tools and online resources that simplify making your business known, from the start-up process through to customer attraction. With these factors in place, we’re keen to help make this the ‘smallest’ Black Friday of all time, with microbusinesses at the epicentre of festive shopping.”
So many tools and resources to help small businesses this holiday season
Small businesses looking for guidance on how to maximise their seasonal sales should visit GoDaddy’s Guide to Selling on Black Friday. Valuable resources include steps to selling online, how to win-price sensitive shoppers and FAQs about selling online.