Story image

E-retailers outdoing bricks and mortar

21 Jul 15

The primary drivers of e-commerce are comprised of 40% convenience, 40% price and value and 20% range, according to research firm Nielsen, whose latest study reveals the 40:40:20 rule is at play behind the nearly 2 million New Zealanders who do their shopping online.

According to the latest research, 40% 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, it is convenient and immediate,” the research firm explains.

 Nearly a quarter (23%) of online shoppers buy via smartphones while nearly one-in-five (19%) do the same on their tablet.

Price competition and value for money is another key driver, Nielsen says, as stated by 40% of online shoppers.

“E-retailers have an advantage where they can pass real estate cost savings onto their customers to undercut the bricks and mortar businesses,” says Tony Boyte, research director, Nielsen NZ.

“Additionally digital can be used as a promotional tool to sell excess stock without wasting prime shelf space.”

Boyte says the ability to buy unique items, or to source items either not available in local stores, is also a draw to the online retail space. “Twenty percent primarily shop online because of the range available including items they want that not available in the local area,” he says.

“The seemingly limitless options available in a virtual environment provide new opportunities for both merchants and consumers,” Boyte adds.

Retail is converging and online browsing converts to both online and in-store purchasing.

Show rooming does occur, with 57% of online shoppers having looked at a product in-store and then bought online (often to secure a cheaper price), yet only 5% do this regularly.

On the other hand, Nielsen says New Zealanders are now web-rooming.

More than eight-in-10 (84%) online New Zealanders have been prompted to go in-store to purchase an item following browsing online, according to the research.

“Now is the time to create omni-channel 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,” Boyte says.

Microsoft NZ bids Goldie a “fond farewell”
Microsoft New Zealand director of commercial and partner business takes new role across the Tasman. The search for his replacement has begun.
One Identity a Visionary in Magic Quad for PAM
One Identity was recognised in the Gartner Magic Quadrant for Privileged Access Management for completeness of vision and ability to execute.
Accenture 'largest Oracle Cloud integrator in A/NZ'
Accenture has bought out Oracle Software-as-a-Service provider PrimeQ, which now makes Accenture the largest Oracle Cloud systems integrator in Australia and New Zealand.
Telesmart to deliver Cloud Calling for Microsoft Teams
The integration will allow Telesmart’s Cloud Calling for Microsoft Teams to natively enable external voice connectivity from within Teams collaborative workflow environment.
How to keep network infrastructure secure and available
Two OVH executives have weighed in on how network infrastructure and the challenges in that space will be evolving in the coming year.
White box losing out to brands in 100 GE switching market
H3C, Cisco and Huawei have all gained share in the growing competition in the data centre switching market.
Gartner names newcomer Exabeam a leader in SIEM
The vendor landscape for SIEM is evolving, with recent entrants bringing technologies optimised for analytics use cases.
52mil users affected by Google+’s second data breach
Google+ APIs will be shut down within the next 90 days, and the consumer platform will be disabled in April 2019 instead of August 2019 as originally planned.