A mature sector dominated by a few giant players

Entertainment, Books & Stationery is our smallest sector and continues to display all the signs of a mature market, with long established online retailers like The Book Depository being the ‘go-to’ for many shoppers.

Some 50% of shoppers, or 946,000 Kiwis, made online purchases, which helped sales grow to $323 million in total. Despite hefty overseas competition (much of it lower priced), our domestic merchants still held on to a respectable 52% share of sales.

Total spend in this sector grew by 9% and transactions also grew by 6%. The growth in this sector was driven by greater international spend.

Domestic spend grew by 4% and was due to an increase in basket size of 4% as well as by new shoppers coming into the sector. Domestically, customers are not buying as often as in 2017, with transactions falling by 1%. 

The highlights:

The highlights
9
%
Growth in online spend over 2017
946
k
Shoppers in this sector
52
%
Of online sales were with domestic merchants
Domestic sales rose
19
%
Higher in Q4 compared to the rest of the year
Average online basket size of $80 was
100
%
Higher than offline basket sizes at $40
International sales were
23
%
Higher in Q4 compared to the rest of the year
Young rural shoppers under 45 contributed the most to the sector's growth - spending
22
%
more than in 2017
$
323
m
Remained the smallest online sector in terms of spend
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Did you know
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Did You Know?

Top reasons customers say they shop online for Entertainment, Books & Stationery, rather than in a traditional store:

  1. Cheaper than in store (59%)
  2. Easier to search and buy (58%)
  3. More choice (48%)
  4. Easier to go online than in store (47%)

Source: NZ Online Shopper Survey 2018

International sales grew by 14%, driven by a 13% increase in transactions as well as an increase in shoppers of 8%. Basket sizes for international purchases remained fairly flat at 1% growth in this sector.

As with many other sectors, there was a lift in New Zealand retailers’ sales in the lead up to the holidays in Q4, at 19%, this was just marginally behind the growth in international sales.

This is a sector where Kiwi shoppers seem at their most comfortable and when they shop, they tend to upsize. Their online basket size at $80 is 100% higher than their offline size. 

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Stack of books
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Did you know
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Did You Know?

While The Book Depository dominates this sector, shoppers also use local marketplaces regularly to buy books, DVDs, music and games. For these shoppers, the most important things when purchasing online are:

  1. Cheapest price (85%)
  2. Range of goods (84%)
  3. Delivery charges (54%)
  4. Customer reviews of products (46%)
  5. Lots of delivery options (26%)
  6. Great customer service (24%)
  7. Good pictures of products (18%)

Source: NZ Online Shopper Survey 2018

 
Continue to Section 5.0:  eCommerce for your Business
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