Tradition dominates, specialists are on the rise

The Health & Beauty sector is driven by hugely differing forces. With Health, there is often an immediacy of need. In Beauty, the shopping mode is one of replenish and discovery. These immediate and tactile drivers possibly explain why traditional bricks and mortar sales are high at 92%.

This makes Health & Beauty our second smallest online sector with only a 9% share of total online sales, or $377 million. It is also the least visited of our sectors with only 646,000 or 35% of online shoppers making purchases.

Total spend with Health & Beauty increased by 12% in 2018 and transactions grew by 16%. The growth in this sector was driven by different factors domestically and internationally.

The highlights:

The highlights
12
%
Growth in online spend
16
%
Growth in transactions
Average basket size dropped slightly by
3.8
%
to $144 for online purchases
Online basket sizes were
113
%
higher than offline basket sizes
64
%
of online sales were with domestic merchants
Weekdays dominated taking
83
%
of online shopping
Q4 saw a swing to international sales -
21
%
rise over a 13% rise for domestic sales
Highest growth in spend was in urban men under 45 with
26
%
growth
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Did you know
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Did You Know?

Top reasons customers say they purchase online in Health & Beauty, rather than in a traditional store:

  1. Cheaper than in store (58%)
  2. Easier to search and buy (50%)
  3. Easier to go online than in store (47%)
  4. I can compare prices more easily (41%)

Source: NZ Online Shopper Survey 2018

Growth in spend with domestic e-tailers was driven by a large increase in transactions of 30% as well as in the number of shoppers at just under 14% increase. Domestically, basket size fell slightly by 3.8% but remained the second highest of all the sectors at a healthy $144. Meaning that more customers were purchasing smaller amounts more frequently.

The 4% growth in international spend, on the other hand, was driven by an increasing basket size of 6% and increase in the number of customers. However, there was a decrease in the volume of transactions by 2%, meaning that more people were purchasing higher value items more frequently.

Women dominate this sector, making up 60% of online shoppers, but men – particularly young, urban males spent 26% more on online in 2018. In the rural towns, where choice and range are lower locally, it’s the younger rural women who are spending more, with online spend growth rising to 19%. 

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Makeup
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Did you know
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Did You Know?

Shoppers are mostly buying make-up, vitamins, shampoo, skincare, perfumes and moisturisers, mostly from local websites. The most important things they look for when purchasing online are:

  1. Range of products (87%)
  2. Cheapest price (83%)
  3. Delivery charges (51%)
  4. Customer reviews of products (40%)
  5. Made in New Zealand (38%)
  6. Great customer service (26%)
  7. Lots of delivery options (24%)

Source: NZ Online Shopper Survey 2018

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