The latest retail figures from New Zealand Post’s eCommerce Spotlight research are good news for anyone who has invested in online marketing in Auckland. They show that online spending in the Auckland region skyrocketed in August, increasing 70% compared with the same month last year. The jump was almost five times the 14% experienced across the rest of the country for the same period, and coincided with Auckland’s enforced return to lockdown.
The statistics confirm that lockdown is good for online retailers, as the Auckland region recorded a 68% increase in May, during the first lockdown period. As local residents were faced with the daunting prospect of going back to alert level 3 in August they took to their digital devices in droves for a large dose of retail therapy of the online kind. Purchases were fairly evenly spread across all categories but, as was the case with the first lockdown earlier in the year, the biggest increases were in homewares and electronics and food. No prizes for guessing the biggest decrease: travel.
Older Kiwis took to online shopping with ease, and in great numbers. There was a 38% increase in shopping online among those aged 75 and over. This was followed by the 60 – 74 age bracket with an increase of 23%. These statistics should give plenty of food for thought for retailers who believe that online shopping is the preserve of the young.
Nationwide, more than 1.3 million New Zealanders shopped online in August; they spent $511 million online, while shopping in-store decreased 6% for the month. Obviously COVID-19 had a massive impact on online sales this year, and with traditional online shopping ramping up from early November until Christmas, it will be interesting to see if the online shopping ‘peak season’ will be as big as it usually is.
Aucklanders, along with the rest of New Zealand, have been introduced to the benefits of online shopping en masse. This has to be good news for anyone who has invested in online marketing in Auckland, and beyond. A sizeable percentage of the population, across all demographics, has had a recent taste of online shopping, and statistics suggest they like it. A lot. As the city and the nation further embraces the concept of going online to buy, it represents a massive opportunity for retailers to cash in on this form of commerce.
What is required, though, is a concerted effort to make the experience a seamless and productive one for consumers. With more and more retailers looking to harvest the lucrative pickings available to them through online, there will be greater competition in the digital commerce space. Those that get it right and offer the best online shopping experience will be the ones who gain the biggest rewards.
