Bunnings will radically “reimagine” its business in response to rising house prices in Australia.
Bunnings will radically “reimagine” his business in an attempt to target high-spending Z-generation Australians born between 1997 and 2012, who have been hit by an astronomical rise in house prices.
Home ownership in Australia is at an all-time low that has not been seen since the 1950s, posing a major threat to the hardware giant that depends on customers wanting to make improvements to their homes.
Bunnings is clearly aware of this, and his CEO Michael Schneider is committed to transforming the business to attract a younger generation, most of whom are still living with their parents.
Speaking at the Global DIY Summit in Denmark, he said Bunnings would increasingly target social media bloggers and bloggers, as well as increase their presence on YouTube and develop apps to help young people view their living spaces.
He appeared to be sympathetic to the Gen Z Australians, who he said accounted for about 20 per cent of the population in the Asia-Pacific region, but who had been devastated by rising house prices. and spent some of their most formative years in confinement.
“We believe Generation Z has defined attitudes and preferences that will require a reimagining of the DIY shopping experience,” he told the conference, according to the The Australian.
“Today, they are rare buyers of DIY products, compared to the average DIY product. And while it’s probably not too surprising, since most of them still live at home, it means there are great opportunities to connect , involve them and inspire them in all the DIY.
Bunnings has a fantastic effort at goal
Bunnings ’drive to attract a younger market comes when Generation Z and millennials are fast becoming a force to be reckoned with when it comes to retail spending.
Afterpay’s research shows that they currently account for 36% of total retail spending in Australia for these two generations alone, spending up to 7% above pre-Covid levels.
Its share of retail spending is projected to grow to 48% by 2030, as more than Generation Z (currently between the ages of 9 and 24) enters the workforce.
Home ownership is a key barrier for these generations to spend their disposable income on stores like Bunnings, as they have become increasingly frozen in the housing market due to over-inflation. real estate prices.
Mr Schneider, however, said he believed young Australians were still focused on buying a home.
“I say this because our research shows that they are absolutely thinking about their future homes and despite the challenges of affordability, they are optimistic that one day they will have a home,” he said. seconds The Australian.
He said Bunnings would target influencers and social media platforms like YouTube to help Gen Z discover the Bunnings brand and draw inspiration from home projects.
“They want to be inspired by DIY and discover products in the same way that they write their social media channels and use other digital services,” he said. “For Bunnings, that means doing things a little differently, looking for social influencers and brands on social media, and thinking about apps that help visualize an online space, blogs, and YouTube videos.”
Bunnings faces a new challenge
All this comes when a new rival has committed to taking over Bunnings ’dominance in the DIY commercial space with a wide range of home improvement products such as fans, lamps, bathroom sinks, kitchen accessories and wallpapers, and more.
Online furniture retailer Temple & Webster this month announced it would move into the $ 26 billion DIY space with the launch of a new business called The Build, no doubt with the goal of claiming some of the renovators who would otherwise go to Bunnings.
The company said it will spend $ 10 million on the creation of The Build, with plans for an initial offering of 20,000 products in 39 categories.
Temple & Webster CEO Mark Coulter said more categories will be added in the coming months, such as construction tools and equipment.
“Australia is a country of home renovators, we love our homes and we love to make them more beautiful,” Coulter said.
“The Build by Temple & Webster aims to make home improvement work, big or small, easier, cheaper and better.”
Having already made a place in the furniture space, Coulter said The Build aimed to fill a gap in the online DIY market, which accounts for only 4% of home improvement sales. in Australia compared to 25% in the UK.
The company does its job, as Bunnings currently accounts for approximately half of the Australian market.
– with NCA NewsWire
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