Two Thirds of Kiwis Online are Buying Online

Kiwis Shopping on the Internet

Research Finds Two Thirds of Kiwis Online are Buying Online

Online shopping mall Ferrit today revealed that more New Zealanders than Australians buy online and on average spend more when they purchase. The data comes from the first Nielsen//NetRatings Online Retail Monitor – research primarily sponsored by Ferrit to understand New Zealanders’ internet shopping behaviour.

The research canvassed 759 New Zealand internet users over a month during December and January. Key findings include:

• 66 percent of adult New Zealand internet users surveyed made a purchase online, higher than Australian internet users, 54 percent of whom purchased online in the lead-up to Christmas
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• 95 percent researched goods or services online (87 percent in Australia)
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• The average spend was NZ$774 compared to A$570 (NZ$642) across the Tasman.
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Cate Bryant, Ferrit’s market strategy manager, says Ferrit is a major supporter of this ongoing monthly research because it fills the research gap of real data about New Zealand shoppers and retailers online.

“To improve online performance you need good information,” says Cate. “Retailers don’t want to make significant business-changing investment decisions based on guesswork. This regular report will provide valuable information for all retailers investing in the online retail market in New Zealand. It’s a way of ensuring that everyone has the best information available to support their decision-making.”

Online dollars going off shore

The Online Retail Monitor reveals that 70 percent of New Zealanders who shopped online bought items from overseas sites. The two main reasons consumers gave for not making the purchase at a New Zealand site were they couldn’t find the item on a site in this country or it was cheaper from the overseas site.

Jacqui Jones, manager - Search and Online Marketing at web design company Netconcepts, says New Zealand retailers have a long way to go to build their businesses online.

“The research shows that New Zealanders are shopping online and many times not finding what they want from New Zealand retailers, simply because they are not there. We are sending our customers offshore and New Zealand businesses are missing out on the online opportunity,” says Jacqui.

Consumers adapt to online retail faster than retailers

Mark Ottaway, managing director Nielsen//NetRatings New Zealand, says New Zealand retailers have been slower to adapt to online retail than consumers.

“What is clear from these early results is that New Zealand was well overdue to have a proper research monitor for online retailing,” says Mark. “New Zealanders have taken up online as a research and purchase medium with gusto and local retailers are starting to wake up to that fact. Without Ferrit’s support for this initiative, however, it is likely that the market would have had to wait even longer.”

The research also shows that New Zealanders spent more on new goods and services from etailers than on used or new goods from auction sites.

• Average spend on new goods and/or services from etaliers was $390
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• Average spend on used goods from auction sites was $131
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• Average spend on new goods and/or services from auction sites was $95
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• Average spend on used goods from etailers was $31
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Ferrit’s Cate Bryant says that bricks and mortar retailers can leverage the advantage of being a trusted and recognised brand, experienced at their physical stores, to increase their online sales.

“They simply need to better understand what works in the online channel and integrate it into their store offering so that consumers get the best shopping experience possible,” she says. “This information is a valuable resource to validate and educate retailers that online retailing is a viable business opportunity – if it is executed well.”

Neilsen Media Research estimates the online market in New Zealand consists of around 1.25 million consumers spending approximately $1.5 billion.

Those who are investing are seeing benefits. “Online is complementary, not cannibalistic, to our instore sales,” says Justin Boyes, group marketing manager, A&R Whitcoulls Group.

Colin Daly, general manager of Repco New Zealand, says that e-commerce will drive sales for physical Repco stores as well as being a significant channel in its own right.

“Ferrit is a key partner in our online strategy and its site enables us to reach a growing audience of online shoppers,” says Colin. “Ferrit’s investment in this kind of research is invaluable.”

Cate says that Ferrit’s goal is to make it easier for consumers to choose the best product for them from the New Zealand online retail sector.

“Customers are telling us they like Ferrit but they want more – more products and more information from more retailers,” she says. “In separate research we asked 750 consumers what they thought of Ferrit and three quarters of them like the site and would recommend Ferrit to their friends, so we’re on the right track.”

ENDS

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