The rise of local fashion

This is 2018’s online powerhouse with over 1.13 million shoppers seeking out Clothing & Footwear. While the sector as a whole enjoyed the highest online growth with sales of $851 million, it was the performance of domestic retailers that truly turned heads with their stellar performance.

Total Clothing & Footwear spend and transactions both grew by a huge 28% in 2018. This was driven predominantly by the domestic sales growth of 45%. Behind the domestic growth is a huge 51% increase in transactions as well as a 15% increase in the number of people shopping in this sector. Basket size in this sector decreased, meaning that domestic growth came from a lot more people shopping a lot more often in this sector.

International spend growth at 13% was driven by a 6% increase in basket size as well as an 11% increase in the number of shoppers.

The highlights:

Online growth in domestic spend
Online sales growth for international and domestic combined
2018 basket size of
was consistent with 2017
Of online sales were domestic - a reversal of 2017 where more than 50% of spend went offshore
Women continued to outshop men with
Growth in spend compared to 12% growth for men
Older shoppers have a renewed interest with
Increase in shoppers over the age of 60
Domestic sales were
Higher in Q4 compared to the rest of the year
International sales were
Higher in Q4 compared to other quarters
Did you know
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Top reasons customers say they purchase online in Clothing & Footwear, rather than in a traditional store:

  1. Easier to search and buy (51%)
  2. Easier to go online than in store (50%)
  3. Cheaper than in store (49%)
  4. I can compare prices more easily (45%)

Source: NZ Online Shopper Survey 2018

This year, 53% of online sales were with domestic e-tailers – a reversal of what we saw in 2017 when international sales ruled the roost. It was a perfect flip and hardly changed the basket size, which remained at $112 in total.

Earlier we identified the Buy Now Pay Later (BNPL) trend as a key driver of this increase by making clothing purchases more accessible for young females. There’s a clear correlation between the growth in BNPL in Q4 and the 57% increase in domestic Clothing & Footwear sales over the same period. But overall, we get a sense there’s more going on with domestic e-tailers. 

With more local based fashion brands coming online, new payment options and increased levels of comfort in online shopping, thanks to easy returns and guarantees, shoppers appear to be flocking back to domestic online fashion retailers.

It’s not just the young who are making an impact in this sector, there’s significant growth in online shopping in this sector amongst older over 60s shoppers – with 18% growth over 2017.

It’s good news all round for Clothing & Footwear retailers, for whom the planets seemed to have aligned in 2018. 

Did you know
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Did you know?

Shoppers are buying everything from shoes, tops, T-shirts, dresses, kids clothes and sportswear from a variety of local and overseas stores and marketplaces. For these shoppers, the most important things when purchasing online are:

  1. Range of goods (85%)
  2. Cheapest price (79%)
  3. Delivery charges (55%)
  4. Good product photography (44%)
  5. Range on trend (27%)
  6. Great customer service (21%)
  7. Lots of delivery options (20%)

Source: NZ Online Shopper Survey 2018

Continue to:  Health & Beauty
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