Every year, New Zealand consumers buy more online than they did 12 months before. According to research from BNZ and Marketview, online spending growth outpaces in-store growth. If eCommerce has such an impact on New Zealand now, what will happen when Amazon Australia launches in 2018? Are New Zealand businesses making the most of eCommerce? And will they be Amazon-ready?
What Kiwi Consumers Spent in June
According to the BNZ/Marketview report, New Zealand consumers spent around $325 million online in June, 10% more than they did in June 2016. Among the more popular categories were:
- Electrical and electronic goods including computers and appliances (22%)
- Groceries, liquor, health food and supplements (21%)
- And clothing, footwear, and Accessories (11%)
Domestic online stores took the majority of the sales, about $175 million worth. However, spending with overseas online stores came in at about $145 million, or 44.5% of total online sales.
While consumers spread their money around, overseas sellers grew their sales by 13% over the year before. Meanwhile, domestic online retailers only grew by 9%, and according to the report, in-store sales went up by 4%.
The Shifting Balance in New Zealand Retail
Clearly, eCommerce impacts New Zealand retail not unlike how it has in overseas. For example, as in the US, online spending growth outpaces growth in physical store sales in New Zealand. Moreover, according to the report, overseas online sales in June grew 13% over the year before, whereas domestic sales grew by 9%. Physical store sales went up by 4%. Finally, as with the US, online shopping still represents a small proportion of overall sales (roughly 4.5%, according to one expert commenting on the report in early August).
The Amazon-Ready Opportunity
Amazon forms a big part of the eCommerce equation overseas, accounting for nearly 43% of online sales in the US. Considering the eCommerce parallels between the US and New Zealand, is it a stretch to assume Amazon Australia will be a big disruptor in New Zealand, as well? As the retail consultant and thought-leader Chris Wilkinson says, Amazon will be big, but not the death-knell of Kiwi retail. In fact, for many retailers, Amazon will be a gateway to international markets.
“…For New Zealand business trying to sell a commodity product it’s almost impossible to compete on price,” Wilkinson told Stuff. “Immediacy, convenience and identifying strongly with a brand are the only ways to compete. You have to create an aspiration offer.”
Cin7 Event: Expert Chris Wilkinson on Being Amazon-Ready
Now is the time for retailers, especially in fashion and apparel, to tackle these looming questions. Will Amazon Australia present a mortal danger to Kiwi retail or will it open doors to new customers, new markets, and more sales?
Join Cin7 as we host special guest Chris and explore these issues and answer the question: Are You Amazon-Ready? in a special, free breakfast conference.
When: Tuesday, 29 August, 2017. 7:30 AM to 9:30 AM
Where: GridAKL, 101 Pakenham Street West, Wynyard Quarter, Auckland
Hear expert opinion and network with your retail and fashion and apparel peers. Click below to register.
Register Now!
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