And while 2020 was a good year for online shopping, accelerated by COVID, it’s important to note that it only makes up 11% of all our shopping. Going to the shops is still how most Kiwis choose to shop. In the UK, US, China and other developed nations, over 20% of all spending is online. This suggests that, even after 2020’s boom, there is plenty of room for online retailers to experience more growth.
A number of notable online trends emerged through 2020 including:
- Over 2.17m Kiwis now shop online – this is 53% of our population.
- Existing online shoppers are spending more often (average 3.2 times) and are spending more each time ($109).
- The 30 – 45 age group makes around 27+ transactions a year with the 40+ age group making almost 30 transactions a year.
- 71% of all online spend was with domestic retailers. All but two of our shopping sectors experienced a decline in international spend.
- Tuesday and Wednesday remain the most popular days to shop online, with Saturday the least popular.
- The strongest growth online occurred amongst the older age groups (over 60) with a 30% rise in spend.
- The number of males online continues to grow. Males tend to shop less often but appear to spend more when they do.
- The regions all experienced strong online growth with Northland, Gisborne, Taranaki and Hawkes Bay all experiencing over 30% growth.
- The South Island hasn’t embraced online shopping with the same enthusiasm, with below average growth in Otago, Southland and Canterbury.
- The launch of a number of new local destinations saw online marketplaces grow by a staggering 46% on 2019.
- Buy Now, Pay Later continued its meteoric rise from the last few years, more than doubling its annual online spend in 2020.
- All our domestic sectors experienced growth in 2020, with all but two growing by over 40%. Not surprisingly, our largest sector, Food, Groceries & Liquor led the way, especially through the lockdown period. What is surprising though, is that this wasn’t even the fastest growing sector for the year. Homewares, Appliances & Electronics took this honour, up nearly 60% on 2019. On top of this, this was the only sector to show significant growth in international spending as well. It is appears that if we can’t go on holiday, we’ll spend the money on things for the house.
We will explore all the trends, including looking deeply into each sector, in the The Full Download, our annual in-depth eCommerce report featuring trends, insights, case studies, expert opinions and tools to help retailers grow their online business.