Kiwi Exporters See Opportunity Online

Kiwi Exporters See Opportunity Online

Auckland, 14 May 2012 – New Zealand exporters are realising the opportunity of selling online. In a recent DHL Rapid Response Survey, 88% of exporters surveyed stated they perceive the growth of online shopping to be an opportunity as opposed to a threat. Even of those exporters that don’t currently sell their products online, 80% still perceive the online retail as an opportunity.

However just under half (46%) of exporters surveyed sell their products online. Furthermore, of those that sell online, the majority of exporters (40%) only sell about 1-5% of their total sales via the Internet.

Tim Baxter, DHL country manager New Zealand says. “The response by exporters reflects the overall situation, that New Zealand is very much in the early stages of adopting and embracing online sales. Especially compared to countries such as the US and UK. While the majority of exporters see the potential opportunity presented by online exports, only a minority are capitalizing on this opportunity and maximizing their sales potential.”

The survey also revealed that there is a divide between those exporters who have embraced the online retail environment and those who have not.

Of those exporters that sell online, 65% have an online strategy with a further 15% planning to develop one this year. Furthermore, 59% of exporters that sell online use some form of analytics tools to track customer behaviour on their website.

Exporters are also beginning to offer multiple channels for customers to purchase their product. Of those exporters that sell online, the majority (55%) sell via their own website, 23% sell via retailers, 13% sell via their own retail outlets and 9% sell via a third party website.

“It’s positive to see exporters providing customers multiple channels to purchase and taking advantage of the large well-established third party websites. These can become conduits to purchasers at home and abroad and can increase the profile of a company in a global e-commerce environment. When coupled with a sustainable and reliable delivery solution, exporters can have to have access to any market in the world,” says Tim Baxter

In contrast, of those exporters that don’t sell online, the vast majority of exporters (45%) primarily sell their products via someone else’s retail store. A considerable 20% of exporters still rely on their own bricks and mortar retail stores as the primary sales channel, with only 35% selling via both their own and third party stores.

“The cost of bricks and mortar retail models makes international expansion a barrier for many smaller organizations and overseas retailers take a large cut of the profit. Online retail creates a unique opportunity to maximize local profits,” says Tim Baxter.

About the survey
The DHL Rapid Response Survey (RRS) was conducted in late April and there were 111 respondents.

The DHL Rapid Response Survey is an initiative aimed at providing insights into the factors impacting on New Zealand’s export trade.

DHL – The Logistics company for the world
DHL is the global market leader in the logistics industry and “The Logistics company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 275,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of 53 billion euros in 2011.

ENDS

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