10 NEW ZEALAND eCommerce Facts - Amazon Web Services

[Pages:1]10 NEW ZEALAND

eCommerce Facts

Once perceived as a slower adopter of eCommerce, New Zealand's online market is quickly transiting into a period of tremendous growth. According to Nielsen's Online Retail Report in July 2014, there were 1.9 million New Zealanders shopping online, reflecting a six percent growth from 2013. There was also a year-on-year increase in shopping on smartphones (127%) and tablets (73%), highlighting the growing potential of mobile commerce and New Zealand's overall opportunity for new entrants.

ECOMMERCE MARKET VALUE & GROWTH POTENTIAL

1

According to the Bank of New Zealand (BNZ), the local eCommerce market was worth NZ $2.7 billion in 2013, representing 6.2% the size of traditional retail. 60% of this was from domestic retailers. In 2014, MasterCard found that 57% of New Zealand consumers made an online purchase at least once every month.

Online Retail Sales (2013)

Annual Value

$2.7

Billion

Almost

60% from local retailers

THE NZ ONLINE SHOPPER

3

According to the World Internet Project New Zealand, 86% of

daily internet users made a purchase online in 2013.

PowerRetail also found that the average shopper spent NZ

$1,906 in 2013. NZ online shoppers are also very mobile savvy;

Econsultancy found that 74% of online users had researched a

product or service via a mobile device in 2014.

86%

made an online purchase in 2013

74%

use mobile devices for product research

MOBILE'S INFLUENCE ON ECOMMERCE

5

New Zealand's mobile penetration is projected to hit 90% by

2018 (Frost & Sullivan). In 2014, Econsultancy found that 33%

of smartphone users made a direct purchase through their

smartphones. In the same year, 58% of tablet owners made a

purchase via the device, according to Nielsen's Online Retail

Report. The report also stated that as of 2014, there were

655,000 people shopping on their smartphones (127%

year-on-year growth) and 414,000 on their tablets (73%

increase from 2013).

eCommerce Penetration on Mobile Devices (2014)

58% 33%

90%

Penetration Rates by 2018

A SIGNIFICANT SHOWROOMING SCENE

7

Nielsen cited in 2013 that two key drivers for online shopping

were lower prices (76%) and product comparisons across

brands (71%). In the same year, a Colmar Brunton study found

that more than 50% of mobile shoppers were influenced by

online promotions and that 58% admitted to showrooming so

that they could purchase at lower costs.

SALE!

58%ENGAGED IN SHOWROOMING

GROWTH OF CROSS BORDER TRADE

9

Overseas online spending made up 34% of the country's total online

expenditure by July 2014, a 26% increase from the previous year

(Nielsen Online Retail Report). In November 2013, data from BNZ

also highlighted several markets that accounted for majority of

offshore retail spending: US (30%), UK (18%) and Australia (15%). To

cater to this growth in cross-border purchases, New Zealand Post

partnered with Singapore Post to set up leading cross-border

commerce service provider YouShop, which offers NZ shoppers

delivery address options in markets such as the US. Overall,

purchases from international retailers were up 11% in September

2014. In the 12 months to October 2014, the online market share

held by international retailers grew by 2.5%.

2

AN INCREASINGLY CONNECTED MARKET

A 2013 World Internet Project New Zealand report found that in

2013, 80% of internet users spent over an hour online every day.

In 2014, Internet Live Stats revealed that NZ's internet

penetration rate had reached 91.45%. According to Google's

Consumer Barometer, 73% of users aged above 55 go online

every day, compared to of those aged 25 to 34 years (88%) and

35 to 44 years (90%).

91.5%

Internet

penetration

80%

spend over 1 hour

online daily

4

AN ACTIVE SOCIAL MEDIA SPACE

In July 2013, research by Colmar Brunton found that 90% of 18 to 39 year olds used social media. comScore's 2014 report further revealed that this grew to 94.6% of the population by November that year. In 2013, Digital Universe also highlighted that Twitter and LinkedIn saw an increase of 14% and 13% in their users respectively. According to First Digital, the number of Facebook users in the country had also increased to 2.4 million by September 2014, an approximate 6% increase from the previous year.

NZ Social Media Landscape (2013)

2.46 million

2.4 million

921,320

743,057

676,307

356,036

6

WHAT NEW ZEALAND'S CONSUMERS ARE BUYING ONLINE

According to the BNZ Online Retail Sales Report, categories with the largest growth in 2014 were groceries, liquor and specialized foods (17%), electrical and electronics (14%), and furniture and homeware (11%).

What NZ Consumers Are Buying Online

Department and Variety Stores

26%

Groceries and Liquor

14%

Electrical and Electronic Goods

Recreation, Toys, Games, Entertainment media, Books

Clothing, Footwear and Accessories

Furniture, Housewares and Hardware

Pharmacy, Cosmetics, Stationery, Antiques, Flowers

14% 14% 12% 6% 3%

Daily Deals

2%

8

PRIMARY ONLINE RETAILERS ACROSS THE COUNTRY

Local auction and classified site Trade Me was the top commerce site in 2013, reaching 56% of the population and 1.9 million unique monthly visitors. This was followed by The Warehouse, the largest retail operating group in NZ, with a 22% reach and 750,000 unique monthly visitors (Nielsen).

Top eCommerce Sites (2013)

Rank

Site

Monthly Audience ('000)

% Active Reach

1

1,875

56

2

745

22

3

627

19

4

587

17

5

477

14

10

THE LOGISTICS LANDSCAPE IN NEW ZEALAND

According to the World Bank's Logistics Performance Index in 2014, New Zealand was ranked 26th worldwide. It also ranked 22nd in terms of trade and transport-related infrastructure and 6th in the aspect of custom clearance efficiency.

34% ONLINE SPEND IS CROSS BORDER

26th

Logistics Performance

22nd Transport Infrastructure

6th

Customs Efficiency

SOURCES:

Adcorp, Bank of New Zealand, Colmar Brunton, Digital Universe, Econsultancy, First Digital, Frost & Sullivan, Google Consumer Barometer Report, Internet Live Stats, Mad Daily, Mastercard, Nielsen, PowerRetail, The New Zealand Herald, World Bank and World Internet Project

Want to learn more about how SingPost eCommerce can support your online business in New Zealand and the Asia Pacific region? Contact biz@

10 New Zealand eCommerce Facts ? 2015 Singapore Post Limited. All Rights Reserved. For more information, visit knowledge-centre

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