Latest research from Nielsen reveals a 40:40:20 rule at play behind the nearly two million New Zealanders shopping online. The primary drivers of this e-commerce are convenience at 40 per cent, price at 40 per cent, and range at 20 per cent.
Convenience is important as effort and time are saved when retailers are at consumers’ fingertips. Forty per cent of online shoppers cite saving time or effort as their main reason for shopping on the internet. Mobile devices are paving the way for consumers to shop online at different locations in a convenient and immediate way. Nearly a quarter of online shoppers at 23 per cent buy via smartphones, while nearly one-in-five at 19 per cent do the same on their tablets.
Price competition and value for money are other key drivers as stated by 40 per cent of online shoppers; consumers everywhere want a good product at a good price.
Tony Boyte, research director for Nielsen NZ, said, “E-retailers have an advantage where they can pass real estate cost savings onto their customers to undercut the bricks and mortar businesses. Additionally, digital can be used as a promotional tool to sell excess stock without wasting prime shelf space.”
The ability to buy unique items or to source items that are unavailable locally are also draws to online retail. Twenty per cent primarily shop online because of the range available.
“The seemingly limitless options available in a virtual environment provide new opportunities for both merchants and consumers,” explained Boyte.
“Retail is converging, and online browsing converts, to both online and instore purchasing.”
Showrooming does occur, with 57 per cent of online shoppers looking at a product instore and then purchasing it online, often to secure a cheaper price (only five per cent do this regularly). On the other hand New Zealanders are webrooming, with more than eight in 10 (84 per cent) online shoppers going instore to purchase an item following online browsing.
“Now is the time to create omnichannel experiences for consumers who are actively using both digital and physical platforms to research and purchase as increasingly they don’t make a distinction between the two,” concluded Boyte.