Online Shopping a Popular Kiwi Pastime

MEDIA RELEASE Embargoed until 1am 21 October

Online Shopping a Popular Kiwi Pastime

Bargains and selection keep Kiwis buying offshore

Auckland, 21 October 2014 - More than a third of New Zealanders spend more money shopping online than they do on a shopping trip to the store according to a new, nationwide survey by Canstar Blue.

Aucklanders are leading the online charge, with 52% preferring to empty their wallets online over in-store, says Canstar New Zealand, General Manager, Derek Bonnar.

“The rest of the country is following suit. Sixty per cent of kiwis are spending more on online shopping than they did 12 months ago. The younger generations are the most likely to reach for the mouse with 67% of Gen Ys and Gen Xs admitting to a larger online spend this year.

“While a trip to the mall has long been considered the domain of women, men are catching up in the shopping stakes, turning to online stores. Sixty five per cent have increased their online spending from last year, compared to 55% of women.

“Despite having access to the world’s largest stores via the internet, a quarter of kiwis are staying staunch in their support of New Zealand businesses, refusing to purchase from overseas online stores.“

Aucklanders are leading the loyalist march with 36% refusing to shop offshore, compared to 17% of Wellingtonians.

But not all kiwis are quite so patriotic. Despite knowing that buying offshore does nothing to support local businesses, 68% of New Zealanders can’t stop doing it, citing the great bargains and selection as key reasons for offshore spending.

Forty three per cent of New Zealanders are shopping online solely from kiwi retailers, while 10% say they shop from only overseas vendors.

Online shopping has now become a key fixture of the New Zealand retail landscape.

The main motivators for heading online are:

• Saving money through better prices (39%),

• Followed by availability of hard to find products (16%)

• And saving time (13%)

A small group (3%) even named boredom as their motivator.

The most purchased items online are:

• Clothing (52%),

• Electronics (40%)

• Media(games and movies) (40%)

• Home wares (34%)

• Health products and cosmetics (33%)

While alcohol comes in last on kiwis’ online shopping lists at 8%.

Returns are a hassle

Fifty nine per cent of New Zealanders find the returns process for online shopping a hassle. Generation Ys are the most likely to find the procedure an annoyance (73%)

More than a third of Aucklanders (37%) have a pile of items that they have bought online that were not suitable, but have not gotten around to returning them, compared to just 9% from the Waikato who are displeased with their online purchases.

“Though online shopping delivers great value, if you purchase something that isn’t suitable and never get around to returning it, you lose all of those savings. Having a pile of unreturned goods is the same as throwing away your money,” says Bonnar.

Respondents were asked to rank their favourite online retailers across nine categories:

1. Value for money

2. Quality of products

3. Customer service

4. Navigation of website (how easy it is to find things)

5. Range of products

6. Delivery options

7. Delivery speed

8. Specials

9. Overall satisfaction with online retailer

MightyApe tops the leader board with a 5-star rating for overall consumer satisfaction.

“MightyApe appears to have got its model right, with a broad product range, the right pricing, delivery options and the all-important customer service,” says Bonnar.

“They have triumphed in cyberspace, trailed closely by bricks and mortar stores Briscoes and The Warehouse who are supplementing their nationwide network with a strong online presence.”

Online Shopping by region

Auckland: Aucklanders are the most likely to spend more money shopping online than they do on a shopping trip to the store (52%), most likely to find the returns process for online shopping a hassle (71%), most likely to have a pile of items that have bought online that weren’t suitable, but that they haven’t gotten around to returning (37%), most likely to be spending more online than they did last year (73%), most likely to know that buying offshore does nothing to support local businesses, but can’t stop doing it as the bargains and selection are too good (76%) and the most likely to refuse to purchase from overseas-based online department stores (36%).

Waikato: People from the Waikato are the least likely to find the returns process for online shopping a hassle (51%) and least likely to have a pile of items that they have bought online that weren’t suitable, but haven’t gotten around to returning them (9%).

Wellington: Wellingtonians are the least likely to spend more money shopping online that they do on a shopping trip to a store (29%) and the least likely to refuse to purchase from overseas-based online department stores (17%).

Otago: People from Otago are the least likely to know that buying offshore does nothing to support local businesses but can’t stop doing it as the bargains and selection are too good (60%).

Bay of Plenty: Those from the Bay of Plenty are the least likely to be spending more than they did last year on online shopping (52%).

About the survey

We partner with respected professional market research agency Colmar Brunton Australia, who undertake research on our behalf using Your Source.

The outcomes reported here are from the 1256 people who have visited and purchased from an online retail store (include online department stores and group buying websites) in the last three months (e.g. ASOS, Groupon, MightyApe). The survey has a margin of error of +/-2.8%.

ENDS

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