As consumers become more savvy, the migration to shopping online nears a tipping point in New Zealand with over 2 million people purchasing goods and services over the internet. The latest data from Nielsen follows a shift from the retailer dictating behaviour to the consumer taking control of their buying habits.
Last year, 20.6 million items were purchased online in New Zealand, totalling $4.7 billion in spending. The data from Nielsen revealed that the number of online shoppers grew by 4 percent with an additional 77,000 people taking part. By the end of 2016 the number of online shoppers is expected to hit 2,140,000.
The obvious drivers behind this spend and growth is a combination of the 24/7 convenience of using the internet as a marketplace, the price and value, as well as the product assortment being much broader than traditional channels.
Tony Boyte, research director, Nielsen NZ says: “Ecommerce engagement has come of age. Online expenditure by New Zealanders has reached $4.7 billion. While growth has steadied over the past year, the market has grown by an exceptional 28 percent since 2012.”
The brands leading the charge online are Trade Me – with 44 percent buying from the site – followed by Air New Zealand, The Warehouse, Mighty Ape and GrabOne. With a small group of large companies dominating the online domain and ecommerce set to grow even more, how can online retailers win more clicks?
“For retailers to attract consumers today, they need to put themselves in their shoppers’ shoes,” Boyte says. “Fast tracking the consumers’ experiences on their mobiles and allaying delivery concerns mean online retailers could enjoy double digit growth over the year ahead.”
Boyte suggested online retailers should optimise their mobile offering to stand out from the crowd in addition to building trust and confidence in the area of mobile device shopping as well as the overall payment experience.
“The prize of being able to ‘talk’ to consumer one-on-one, including location marketing is a strategy that will also push retailers into strengthening their mobile position,” says Boyte.
He highlighted differentiation in delivery as a major factor in building trust. The pain points related to delivery concerns are recognised as making up a third of reasons for not shopping online – the foremost being cost.
“Taking cost out of the equation, through premium service offerings for multiple purchases and/or allowing consumers to collect items in-store after buying online, are now being offered by brands as a way to go the extra mile.