2021 was to be the year we returned to a post-COVID normal however the pandemic has fundamentally changed the way many of us operate in our personal and work lives. In the past, most office workers were asked to work from home, and training sessions were even provided because offices had to close and business travels had to be canceled. Almost every aspect of our lives has changed in the last year.
Here is some of what we can expect in 2022:
Federal Election
The Commonwealth Electoral Act 1918 (the Act) and the Australian Constitution govern the timing of federal elections. The precise technicalities are discussed in detail in a Parliamentary Library publication; however, the abbreviated version is that, if the Government intends to hold a regular (House of Representatives and half-Senate) federal election, election day must be no later than 21 May 2022
Text messages, robo messages, and advertising are on their way in preparation for the upcoming federal election! This is due to the fact that the influx of change has spread to the marketing department. There are numerous tools and opportunities available to engage voters.
Federal Budget in March
The timing of the election will bring the Federal Budget forward to March 2022. It’s an election year; expect many of the productivity based tax concessions to be extended. This means direct benefits to a subset of taxpayers – it can attract investments, increased employment, higher number of capital transfers and also improvement to less developed areas.
But according to new research from The Australia Institute, men receive more than two-thirds of the benefit of four tax concessions that cost the federal government a total of $60 billion per year.
The report also discovered that the tax breaks help the rich get richer, with roughly 39% of the benefit going to the top 10% of income earners and 41% going to the top 10% of wealth owners.
Lock-in digital gains
McKinsey & Company reports that consumer digital adoption rates accelerated dramatically during the pandemic. Coming from a lower base, developing countries have seen much faster growth in digital adoption than developed countries, equating global access.
- Many sectors will lock in the digital gains they made. Some, however, will see a decline in digital sales as consumers are no longer forced to shop online – groceries for example.
With the rapid advancement of new technologies and channels for interacting with generic and niche audiences, businesses must adapt quickly in order to remain relevant and to their audience while also out-maneuvering the competition.
- To lock in the gains of digitalisation, consumers expect trust, end-to-end digital service (from start to after sales service), and an improved online experience. Customers must be given compelling reasons to stay, such as a superior brand experience or incentives.
For businesses, it’s about ensuring that you’re playing to your strengths – are you a dependable source or supplier with whom consumers engage over time? Are you maintaining your industry’s authority, listening to your customers, and staying ahead of the competition? Developing an effective digital marketing strategy is essential for preserving company brand and relevance.
- Forced online adoption has changed the consumption habits of an older and wealthier portion of the market. The average age of online users in the McKinsey Global Sentiment Survey increased by around 3 years and spent around 4% more. This means that market segments have changed as the digital world has accelerated during the pandemic.
As the world was forced to hide inside their homes to protect themselves from the virus, our consumption and needs increased rather than decreased. We were forced to shop online instead of going outside, and this trend does not exclude anyone in the consumer pie chart.
- Coming from a lower base, developing countries have seen much faster growth in digital adoption than developed countries, equating global access.
The developed world was further ahead in terms of digitization speed and percentage of adults with internet access. As a result, developed countries may experience a slower rate of digital adoption than developing countries.
When it comes to growth rates, it’s worth noting the obvious: countries that are already heavily digitised have less room for expansion than countries with low digital adoption.
Going green
Many sought refuge in the great outdoors in 2020, a year when the coronavirus decimated international travel and introduced terms like “quarantine” and “social distancing” into the vernacular.
During the crisis, customers developed a renewed relationship with nature and are willing to pay more for products or services from companies that are committed to having a positive impact on the environment. Most consumers now prefer to participate in environmental protection, even if it comes at a higher cost.
Business and consumers will be expected to be mindful of their carbon footprint. A wasteful process is likely to diminish consumer appeal.
Businesses that make an effort to capitalise on being environmentally conscious will have a better chance of market establishment, which will likely result in attracting new customers, client loyalty, and cost savings.
“You can’t change conditions. Just the way you deal with them.”
Jessica Watson, 2011 Young Australian of the Year, sailor