ChannelLife New Zealand logo
Industry insider news for New Zealand's technology resellers
Story image

Retailers must invest in new tech to keep up with online shopping demand

By Shannon Williams
Mon 4 Jul 2022

In 2023, New Zealand shoppers are expecting digital transformation, with 8 in 10 saying retailers need to invest in new technology, according to a new report.

New research from Klarna reveals that 4 in 10 New Zealand shoppers believe they will shop mostly online in 2023. But there are pain points in the digital shopping experience to address, and the vast majority (79%) believe retailers need to continuously invest in new technology to meet the evolving needs of consumers.

The report Shopping pulse: New Zealand includes insights based on the findings of a recent survey of 1,085 New Zealand shoppers and an internationally comparative survey of over 11,740 respondents across 11 other countries (the US, UK, Australia, Germany, Austria, the Netherlands, Belgium, France, Sweden, Norway and Finland).

"We have seen shopping habits change since the beginning of the pandemic," says Katrina Ang, Klarna director of marketing, Australia and New Zealand. 

"This has resulted in a higher demand for more purchasing opportunities at our fingertips, as well as greater expectations when it comes to the online customer experience," she says.

"Our new report reveals that almost 1-in-2 New Zealanders believe that they will shop mostly online in 2023. I'm looking forward to seeing how retailers in the year ahead adapt to the ever-evolving online customer and the innovative new tech that will emerge from this."

Perceived hurdles in the online shopping experience may prevent digital growth and todays shoppers are looking for innovative solutions offering a better shopping experience. The most wanted improvements online are frictionless payments (41%), personalised product recommendations (33%) and a seamless omni channel experience (33%).

4 in 10 New Zealand shoppers believe they will shop mostly online in 2023.

Forty per cent of New Zealand shoppers believe they will make most of the purchases online in 2023, which ranks 6th out of 12 in an international comparison, and on par with Australia. This means that New Zealand shoppers believe they will be shopping online in the future to a good extent and ahead of Austria (39%), Finland (36%), France (35%), and Norway (30%).

Other key findings from the report include:

Entertainment is the only product category in New Zealand shopped more often online than in physical stores.

Clothing & Shoes, Groceries, Home & Garden and Pharmaceutical Products are bought in physical stores to a much higher extent than other product categories. During the past month, 49% shopped Clothing & Shoes offline, while 33% did so in physical stores - the equivalent shares for Groceries was 82% in physical stores (vs 29% online), Home & Garden (50% offline vs 17% online), Pharmaceutical products (58% offline vs 18% online).

Mobile shopping is on the rise. Device preferences are shifting as 61% have shopped more often on their mobile phone compared to just two years ago (Gen Z 78%, Millennials 66%). Looking for deals and price promotions (95%), comparing prices (91%) and keeping track of deliveries and returns (89%) are the most common mobile shopping-related activities. Almost 9 in 10 (86%) of New Zealand shoppers have shopped using their smartphone to research products while in physical stores.

Investment in new technologies by retailers is critical. The majority of New Zealand shoppers (79%) from all generations believe retailers need to continuously invest in new technology to meet the evolving needs of consumers, which holds true for all generations (Gen Z 72%, Millennials 75%, Gen X 68% and Baby Boomer 65%).

Social media and online live shopping events drive discovery and more informed purchasing decisions. Almost 3 in 10 New Zealand shoppers have purchased a product after seeing it on social media. The top social media platforms for shopping are Facebook (61%), Youtube (50%) and Instagram (43%). Among those social media shoppers, nearly 7 in 10 (67%) have purchased a product directly from the platform, ranking 1st out of 12 countries - ahead of the US (58%), and Australia (51%).

Shoppers are looking for innovative online shopping experiences. Although only 18% have participated in a livestream shopping event, 21% have heard about it. Over 3 in 5 Gen Zers in New Zealand have already participated in such an event. Some of the biggest benefits of livestream shopping are recommendations (32%), allowing more informed purchase decisions (31%) and real-time engagement (30%). Interactivity (games, quizzes, giveaways) appeal the most to Millennials (36%).

Shoppers look for smarter payment options. Whilst New Zealand shoppers have the highest preference for physical/plastic cards (75%), there is a growing interest towards virtual cards. 91% of those who have tried a virtual card (29%) would rather make all future online purchases with virtual cards instead of physical cards, mainly because of convenience (65%), increased anonymity, privacy and security (56%) and fraud protection (48%).

Related stories
Top stories
Story image
Hands-on review: Huawei Watch D smart watch
The Huawei Watch D is the latest flagship smart watch from the Chinese tech giant, and it's further proof that the company is more than capable of competing with the likes of Samsung and Apple in the highly competitive wearable market.
Story image
Hands-on review: OPPO Find X5 smartphone
With the release of the new OPPO Find X5 in March, we got the opportunity to explore another one of their premium devices.
Story image
Hands-on review: JBL Flip 6 portable speaker
Once you switch it on, and listen away for up to 12 hours, you will quickly realise that this is a little speaker looking for a party.
Story image
Tech job moves
Tech job moves - Fastly, INX, Kinly, SmartBear & Vectra AI
We round up all job appointments from July 29 - August 12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Samsung introduces new generation of foldable smartphones
Samsung has unveiled its new range of Galaxy Z smartphones, bringing new developments to the company’s foldable smartphone portfolio.
Story image
Dicker Data
Dicker Data brought on as Acronis partner for A/NZ
The news about the partnership comes in as cyber criminals continue to exploit gaps in traditional solutions and strategies in NZ and across the APAC region.
Story image
Red Hat
Red Hat announces 2022 awards winners for A/NZ region
Red Hat recently acknowledged Australia and New Zealand partners with its annual awards, highlighting partners across various categories.
Story image
Financial results
Jade Software’s plan to get back to surplus in 2022
Jade Software has released its latest financial report, revealing that the company has kept its loss low from $567,000 in FY 2020 to just $153,000 in FY 2021.
Story image
SnapLogic teams up with meetmagic for charity and children
SnapLogic has announced its partnership with meetmagic, an online Australian platform that combines business and philanthropy.
Story image
High level of Customer Identity & Access Management adoption
The study from Okta revealed that the pandemic has either accelerated or highlighted the need for digital-first strategies.
Story image
9 in 10 retailers prepared for economic challenges this year
Some 9 in 10 retailers (86%) are prepared for continued inflation, higher interest rates and potentially lower consumer spending, according to new research.
Story image
New range of Samsung Smart Watches announced with health focus
Samsung has announced new additions to its SmartWatch portfolio, with the Galaxy Watch5 and Galaxy Watch5 Pro to be released in late August.
Story image
Privileged Access Management / PAM
The importance of stopping identity sprawl for cybersecurity
The 2021 Data Breach Investigations Report (DBIR) shows that 61% of all breaches involve malicious actors gaining unauthorised, privileged access to data by using a compromised credential. Unfortunately, it is often too late when the misuse of a credential is detected.
Story image
Cyber attacks
Dramatic uptick in threat activity with exploits growing nearly 150%
"While it’s not a surprise given increased attack opportunities like remote work, it’s still a worrying development and one we cannot ignore."
Story image
Home security
Hands-on review: Eufy Wire-Free Dual Cam Video Doorbell 2K
We have had our house secured by Eufy products for over seven months now. We love the brand, and it has never let us down.
Story image
Dark web
Beware the darkverse and its cyber-physical threats
A darkverse of criminality hidden from law enforcement could quickly evolve to fuel a new industry of metaverse-related cybercrime.
Story image
Ingram Micro
Ingram Micro NZ sees $74 million revenue growth in 2021
Ingram Micro New Zealand's latest financial report reveals that its revenue from contracts with customers increased by almost $74 million in 2021.
Story image
Artificial Intelligence
Exclusive: NZ-based DEFEND offers global cyber protection
DEFEND supports customers in 66 countries across the globe with a relentless focus on ensuring that every dollar spent on security provides a meaningful return on investment and reduces cyber risk.
Story image
NZ program recovers and recycles more than 177 tonnes of e-waste
The TechCollect NZ pilot program says its milestone of recovering and recycling more than 177 tonnes of ICT e-waste recognises the efforts of many.
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Story image
Application Performance Monitoring / APM
New Relic integrates offering with Atlassian’s Jira Software
New Relic has integrated errors inbox with Jira Software to allow developers to easily access and set up complete stack error tracking and software performance monitoring from within the tool.
Story image
Why security needs to shape your journey to the cloud
It's estimated that 80% of workloads could be in the cloud in the next few years. How can you make all that data secure?
Story image
Snyk announces plans to expand partner network in APJ
Recognising that partnerships are critical for growth, Snyk is building an entire partner ecosystem that will drive its expansion across APJ.
Story image
Keysight Technologies and Nokia’s public test of 800GE success
Keysight and Nokia have successfully demonstrated the first public 800GE test, validating the readiness of next-generation optics for service providers and network operators.
Story image
Organisations exposing highly sensitive protocols to public internet
More than 60% of organisations expose remote control protocol SSH to the public internet, while 36% of organisations expose the insecure FTP protocol.
Story image
Nozomi Networks adds nine partners to its MSSP program
OT and IoT security company Nozomi Networks has added nine new members to its MSSP Partner Program, and the list includes CyberCX and Deloitte.
Story image
Spectralink DECT devices now integrated with Microsoft Teams SIP Gateway
Spectralink DECT devices are now integrated with Microsoft Teams SIP Gateway to help create better results for business-critical frontline workers.
Story image
Attacks on gaming companies more than double over past year
The State of the Internet report shows gaming companies and gamer accounts are at risk, following a surge in web application attacks post pandemic.
Story image
New Zealand
2degrees announces appointments to newly established board
2degrees has announced Liz Coutts as the board chair, while Russell Stanners and Kathy Meads join her as directors.
Story image
Ministry will no longer accept equipment from Chinese firm Hikvision
The Ministry of Business, Innovation and Employment (MBIE) says it will no longer accept equipment from a major Chinese surveillance camera maker.
Story image
Cloud and data protection big challenges for NZ businesses
"This surge towards a cloud-first approach meant security and safety became afterthoughts - there's no point being the fastest car on the racetrack if you crash.”
Story image
LG Electronics
LG Electronics’ revenue in NZ grows by 57% in FY 2021
The New Zealand branch of LG Electronics Australia's total revenue shot up by nearly NZD $45 million reaching a total of $123.7 million for FY 2021.
Story image
Web application firewall
Radware recognised in KuppingerCole’s 2022 Leadership Compass report
Radware has been named a Product, Innovation, Market and Overall Leader in the 2022 KuppingerCole Leadership Compass report for Web Application Firewalls.
Story image
Document Management
TrustRadius gives M-Files two document management awards
TrustRadius has recognised M-Files with both a 2022 Best Feature Set and a 2022 Best Relationship award in document management.
Story image
Machine learning
Sysdig releases CDR offering to combat cryptojacking
Sysdig has unveiled a cloud detection and response (CDR) offering powered by machine learning to combat cryptojacking.
Story image
Home Entertainment
Hands-on review: TCL 65″ C835 Mini LED 4K Google TV
We introduce you today to a TV that brings the height of immersion to your viewing experience: The TCL 65″ C835 Mini LED 4K Google TV.
Story image
Google Cloud
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Garmin expands NZ footprint with new Auckland distribution centre
The facility at Goodman’s Highbrook Business Park will be fully operational from October 2022 and features 3,586sqm of warehouse space.
Story image
Workplace design a crucial factor for better employee experience - report
The key to a successful workplace could be its design, according to research from Ecosystm and Neat.
Story image
Hands-on review: Arlo Go 2 security camera
In my humble opinion, Arlo Go 2 offers security for anyone needing to keep a remote eye on prized possessions or premises at different locations.