Market Trends of New Zealand E-commerce Industry
This section covers the major market trends shaping the New Zealand E-commerce Market according to our research experts:
Increasing Online Shoppers is Expected to Boost the Market
- The trend for online shopping in the region is increasing rapidly owing to the increasing number of online shoppers. This is further driven by a growing number of online transactions for online shopping and increasing online basket size for the consumers in the region, which is additionally expected to drive the E-commerce market in the region over the forecast period.
- As per New Zealand Post, the total number of customers in Q4 2021 increased by 9% compared to Q4 2020, with 46% of the adult population of the region shopping online during Q4. While most of this boost in sales reflects returning online shoppers, safety concerns during lockdowns continued to drive a steady stream of first-time online shoppers. The online shoppers in Q4 increased by 74,000 online shoppers in the region.
- Furthermore, the most significant driver in Q4 2021 was rapid transaction growth for online shopping. There were over 22.5 million transactions online in Q4 of 2021. That averages out to nearly 245,000 online transactions per day. Compared to Q4 of 2019, Q4 of 2021 had 7.2 million more transactions, a whopping increase of 47%.
- Additionally, online shoppers in the region are transacting more often, and the online basket size is also increasing, further driving the growth of the E-commerce market. For instance, the online basket size of the consumers was USD 104 in Q4 2019, which grew to USD 111 in Q4 2021, as reported by New Zealand Post.
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Clothing, Footwear and Fashion Segment is Expected to Drive the E-commerce Market
- The fashion sector in the New Zealand e-commerce market is constantly changing, driven by trends, exchange rates, delivery speeds, and cost, and increasingly influenced by finance offers by the major E-commerce companies in the region.
- Furthermore, the growing adoption of digital advertising on social media platforms like Facebook, Instagram, and Pinterest driven by coupons and discounts is further attracting and appealing to the consumers in the region to go for clothing and footwear purchasing through E-commerce.
- As reported by New Zealand Post, the clothing and footwear segment was up an impressive 37% in Quarter 3 of 2021 compared to Quarter 3 of 2020. The clothing and footwear sector saw its year-to-date spend up 25% compared to last year.
- Furthermore, the growth in numbers of clothing and footwear also showed a strong correlation between the growth of the younger age groups online, which are more active in online shopping of fashion products, and the growth of sectors like Buy Now Pay Later, which are over-represented by the younger age groups. This trend is further expected to grow over the forecast period.
- All of the aforementioned factors are further expected to boost the demand for clothing, footwear, and fashion products in the e-commerce market over the forecast period.
