BNZ and Marketview have released their latest monthly report on New Zealand online retail sales for April 2015.
The report reveals that NZ’s online retail spending now exceeds $3 billion per year.
Total online spending by Kiwis rose moderately in April, up seven per cent compared to 2014. The report shows a dip in spending between March and April, which is a typical seasonal occurrence.
The report shows the value of online spending at domestic merchants was up three per cent on spending in the same month last year. The value of electronic card transactions report by Statistics NZ for April was up five per cent on April last year.
According to the findings, online purchases from international merchants continued to show double-digit growth, with spending up 14 per cent on April last year.
The online sales split between domestic and international merchants was approximately 58 per cent versus 42 per cent for the month of April; and 59 per cent versus 41 per cent for the 12 months ended April, the report shows. Over the past year international merchants have gained a two and a half per cent market share.
The report details how the growth rate in domestic merchants’ physical store sales is outpacing their online sales.
The value of electronic card transactions reported by Statistics NZ for April is up 5.3 per cent on April last year, BNZ says.
BNZ says this growth rate mainly reflects sales at physical stores and exceeds the 2.7 per cent rise in online spending at domestic retailers compared to April 2014.
Using electronic card transactions data as a proxy, domestic merchants’ physical store sales have grown faster than their online sales in year on year terms for eight out of the last 12 months, BNZ explains.
Electrical and electronic goods are a key growth category for Kiwis at both domestic and international merchants, the report reveals.
Interestingly, international merchants continue to enjoy faster online spending growth in NZ than their domestic counterparts.
Clothing, footwear and accessories and electrical and electronic goods, including computers, are responsible for just over 40 per cent of the growth in NZ’s annual online spending at international sites.
Excluding the daily sales category from the mix, electrical and electronic goods and the groceries, liquor and specialised food categories are responsible for over 60 per cent of the growth in annual online spending at domestic sites.
The report shows international merchants’ market share continues its upward trajectory.
In the month of April 2015 the online sales split was approximately 58 per cent for domestic merchants versus 42 per cent for international merchants.
For the 12 months ended April, the ratio was approximately 59 per cent for domestic merchants versus 41 per cent for international merchants. International merchants have made a market share gain of two and a half per cent over the last 12 months.
