Boom for Kiwis shopping online

The boundaries between eCommerce websites and retail outlets are blurring in New Zealand, with 95 per cent of Kiwi shoppers using a mix of both online and in-store information to nab the best deal.

According to the 2011 Visa Savvy Shopper Survey, a massive 86 per cent of New Zealand shoppers are now turning to online shopping to research products and prices before heading to traditional shopping malls and stores.

Sean Preston, Visa’s NZ country manager, is not surprised that Kiwis are being tempted to shop online rather than in-store. He said the research highlighted changing financial circumstances, including the favourable exchange rate and availability of credit and debit card payment options, as motivation for New Zealanders to adapt their buying behaviour.

“Price checking in-store before buying online is an on-going trend that is likely to continue, particularly as consumers use the power of the web to make their money go further. The lines between high-street and eCommerce are becoming increasingly blurred, with growing numbers of global and domestic brands now boasting online storefronts. The strength of the Kiwi dollar is also driving more consumers online.”

Convenience is another factor attracting New Zealanders to online stores, 85 per cent enjoy shopping from the comfort of their own home and 54 per cent appreciate the lack of queues in cyberspace.

Credit and debit cards dominate when it comes to paying online with Visa credit card being the most popular (39 per cent), followed by Visa debit card (27 per cent). A big driver behind the popularity of a debit card is the ability for customers to use it online, over the phone and overseas.

This year, 69 per cent of debit cardholders cited online shopping as the reason for choosing a debit card.

When it comes to online shopping habits, the majority of New Zealanders use the internet to search for ‘want’ items. The most sought after products online are entertainment/recreational related, followed by clothes, shoes and accessories.

Local online auction site TradeMe.co.nz, NZ’s home grown version of eBay owned by Fairfax, is still the most popular store with 70 per cent of online shoppers indicating it as their favourite.

Amazon is a distant second with only 19 per cent of shoppers singling it out. Most New Zealanders (76 per cent) would like all retailers to provide the option of buying online.

These findings come from a nationwide survey of consumer spending patterns designed to examine new trends, views and behaviours in relation to payment preference, online shopping and overseas shopping.

Additional findings include:

  • The most popular online purchases are entertainment/recreational items (19 per cent), clothes, shoes and accessories (16 per cent), travel/holidays (13 per cent), household items (11 per cent) and electronics (10 per cent).
  • The majority of shoppers use the internet to buy want items (79 per cent).
  • The majority of online shopping is done during the week (75 per cent) with work day evenings being the most popular (38 per cent).

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