What’s sparking the rise in big ticket sales?

Until recently, the Homewares & Electronics sector has been one of the slower selling sectors online – accounting for only 14% of all online spend. It’s a low frequency of purchase sector, after all. It is also the sector that attracts the second lowest number of online customers – just 37% of all shoppers, or some 700,000 buyers. Sales are still dominated by traditional bricks and mortar retailers (93%) and of the online sales, some 79% are with domestic retailers.

In 2018 we saw good growth in this sector. The overall growth in spend was 20% with transactions growing at almost the same rate of 19%, making it one of the fastest growing sectors and is now worth $574 million online.

This was driven primarily by the growth in domestic online sales of 23%. This was due to a 28% increase in the number of transactions as well as the largest increase in the number of shoppers for any sector at over 16%. The basket size decreased by 3%.

The highlights:

The highlights
23
%
Growth in domestic online spend
$
254
Average basket size has remained consistent for online
We're supporting domestic business with
79
%
of online sales staying in New Zealand
Younger shoppers were clicking more with
23
%
more under 30 shoppers and 16% growth in the 30-44 age group
Younger metro & urban shoppers continue to spend the most with
32
%
And 30% respectively - compared to rural shoppers at 21%
It's all in a week with
79
%
of online shopping happening over the weekdays with Wednesday being the most popular day
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Did you know
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Did You Know?

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

  1. Easier to search and buy (56%)
  2. Cheaper than in store (55%)
  3. I can compare prices more easily (53%)
  4. Easier to go online than in store (49%)  

Source: NZ Online Shopper Survey 2018

Internationally the 7% growth in sales again came from an increase in transactions and shoppers, and like domestic, the basket size decreased in this sector by 3%.

Being largely big-ticket items, the average basket size is the largest of all the sectors at a whopping $254, and is a huge 80% higher than offline basket sizes.

The rise in domestic online sales might just signal an improved online environment and increased trust by consumers in the fulfilment process, deliveries and in warranties.

Once again, it’s the young who are embracing this sector online with 23% more under 30 shoppers. Watch for further growth in 2019.

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Headphones
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Did you know
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Did You Know?

Shoppers are buying computers and accessories, kitchenware, headphones, laptops, mobile phones, microwaves and cookware. Two-thirds are buying them from local websites and/or local marketplaces. The most important things for them when purchasing online are:

  1. Range of goods (84%)
  2. Cheapest price (83%)
  3. Delivery charges (48%)
  4. Latest technology (40%)
  5. Warranty (33%)
  6. Lots of delivery options (25%)
  7. Great customer service (21%) Twenty per cent of shoppers said having a permanent store in New Zealand was important.

Source: NZ Online Shopper Survey 2018

 
Continue to:  Clothing & Footwear
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