With technology becoming so entwined in our everyday lives, there is much confusion surrounding consumers preferred platform when it comes to shopping. There are many competing which influence consumers purchasing methods, from online vs traditional retail to local vs international brands. New data has emerged which may help local businesses understand where it is kiwis are spending their money.
When it comes to online vs traditional retail, it seems that the online sector is outpacing the alternatives. According to data from the latest BNZ and Marketview report the growth rate for local online retail in December, one of the busiest times of the year, reached an impressive 10 percent. This bodes well for local enterprises as while consumers are choosing to shop online rather than at traditional bricks and mortar establishments; they are still buying local. This ultimately benefits the New Zealand market place and the respective industries, giving brands the chance to hold onto their consumers rather than lose them to international competitors.
Much of the fear New Zealand brands hold toward the online sector comes from concern over being eclipsed by much larger international players. However, while December saw an increase in local online spending, online spending with international sites down 1 percent compared to the previous year.
Gary Baker, director of institutional research for BNZ released a statement explaining the significance of this drop. “The growth rate for international sites has been slowing down in recent years, but this is the first time we have seen a negative year-on-year growth rate,” he explained. “Spending at offshore clothing retailers, for example, was down 9 per cent on a year earlier.”
With consumers eyes on kiwi brands, New Zealand companies are being presented with an opportunity to outshine the international competition. But to do this, they must also be willing to move away from traditional bricks and mortar stores, and into the technological future.