Domestic merchants saw a 6 percent growth, which BNZ says is similar to the growth in spending at physical stores. The bank says annual growth in online spending seems to have settled into single digits, typically tracking between 4 and 8 percent per annum.
When viewed in terms of total online spending, some markets saw solid growth. “Other” specialised food was up by 38 percent – The Register team wonders whether this category might be reflecting the growth of grocery delivery services such as MyFoodBag and Farro Foodkids.
Online sales of entertainment (including downloads) have risen by 23 percent, clearly spurred on by the launch of new streaming services such as Lightbox, Neon, Quickflix and Netflix, and sales of electrical and electronic appliances have risen by 27 percent.
Online purchases of computers and peripherals are up by 19 percent, and online sales of clothing are up 17 percent.
BNZ spoke to Mighty Ape’s Dylan Bland about the state of Kiwi online retail. He told the bank that local e-commerce retailers had an edge over foreign players as the Kiwis could focus on their own market. Overseas online retailers often did not have distribution centres in New Zealand, he said, meaning Mighty Ape also had a speed advantage.
“Stock warehoused locally can be delivered overnight anywhere in New Zealand. High service levels and fast, reliable delivery is an area where all local companies can effectively compete.”