Online shopping continues to thrive with the vast majority of New Zealanders shopping online monthly. A new report highlights a strong consumer focus on value and convenience, revealing increased brand switching for better prices and growing concerns over data privacy. Retailers must adapt by enhancing loyalty programmes and strategic marketing to stay competitive.
Online shopping has firmly embedded itself in the ANZ retail landscape, with the latest Australian and New Zealand Ecommerce Report 2024 revealing robust engagement across both countries. According to the report released today by IAB Australia and Pureprofile, a significant majority of online shoppers in the region – 83 percent in Australia and 77 percent in New Zealand – are making online purchases monthly. This highlights the ongoing shift towards digital retail, though it also brings to light a growing trend among consumers prioritising value.
Key findings from the report illustrate that value-seeking behaviour is dominant, with 62 percent of shoppers actively switching products and brands to secure better prices. In a market where discounts and lower prices have become increasingly crucial, consumers are exploring a variety of discovery methods. While search engines remain the primary tool for finding products, 38 percent are now leveraging price comparison sites, and 20 percent are using major shopping events to scout for deals.
Convenience continues to be the primary driver for online purchases, cited by 68 percent of respondents. This is particularly relevant for the time-strapped 18-49 age group, who are willing to pay a premium for convenience. Meanwhile, loyalty programmes are gaining traction, with 92 percent of online shoppers enrolled in at least one program. Most shoppers are also willing to share personal data in exchange for benefits like discounts and rewards, though concerns over data privacy are rising, with 71 percent of shoppers expressing heightened unease about how their data is used.
Gai Le Roy, CEO of IAB Australia, emphasises the importance of trust and transparency in loyalty programmes. “Retail businesses must provide clear information about their use of shopper data, especially with new privacy regulations on the horizon in Australia,” Le Roy advises.
Martin Filz, CEO of Pureprofile, notes the significant shift towards price sensitivity. “Consumers are actively seeking the best deals and frequently changing brands to stretch their budgets further. Retailers have a substantial opportunity to capture attention through effective marketing, even in tighter economic conditions.”
For retailers, several key takeaways emerge from the report:
- Popular categories: Clothing, fashion & shoes (70 percent), groceries (58 percent), and meals & takeaway (56 percent) lead online purchases.
- Product discovery: Retailers’ content—through websites, apps, emails, and social posts—plays a crucial role, with 61 percent of shoppers engaging with this content.
- Marketing strategy: Investment in multi-channel advertising and brand-building remains vital for long-term success.
- Consumer preferences: Over-50s lean heavily on search for product discovery, while younger shoppers (18-29) are more influenced by social media. Additionally, price comparison, fast shipping, and free returns are increasingly important to consumers.
- Ethical shopping: A notable percentage of shoppers – 46 percent in Australia and 39 percent in New Zealand – consider ethical brand practices important.
The report underscores that retailers need to strategically balance discounting with offering added value and tailored shopping experiences to navigate the current economic climate effectively.
The Australian and New Zealand Ecommerce Report 2024 is based on research with 1,000 online shoppers from each country, providing a comprehensive look at the evolving ecommerce landscape. This marks the fourth annual Ecommerce Report for Australia and the inaugural survey for New Zealand.
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