2021 was another interesting year for Kiwis and eCommerce, and the results towards the end of Q4 showed that we were heading towards a record year for online spend. Our team of 5 million came together as a unit to push through another year of sporadic lockdowns, and showed that we were far more prepared this time around.
With this we saw new trends emerging, and some that continued to grow from 2020 - Kiwis carried on backing local businesses through challenging times, and saw Black Friday and Cyber Monday spend reach new heights.
Keep reading to go over some valuable insights and eCommerce trends from 2021 and what could be driving them, as well as how online consumer behaviour has changed in the last year or two.
Stat 1: Starting the year off with a bang
In the first quarter of 2021, online shopping spend hit a massive $1.47 billion, up 27% on the same quarter in 2020. This shows that our love for online shopping in NZ continues to grow, however lockdowns during both periods would have played a role in this.
Kiwis went into their first lockdown in march of 2020, and many retailers had to close until they were able to get up and running online. In the first quarter of 2021, Auckland went into two short lockdown periods, but overall everyone was better equipped this time around.
Stat 2: Continuing to support local
As at November 2021, 72% of all online spend was with domestic retailers, showing that Kiwis continued to support local businesses. “Support Local” initiatives started popping up all across the country from businesses who were in a position to continue operating, pushing people to back domestic business during their most challenging time.
Stat 3: BFCM
Black Friday and Cyber Monday sales became even more popular in 2021, with the 4 day period in between seeing a total spend that exceeded $141.3 million. This is up 23% compared to the same 4 days in 2020, and up by a whopping 60% compared to 2019.
Before Black Friday, Retail NZ chief executive Greg Harford said, "Black Friday now rivals Boxing Day in terms of its significance in the Kiwi shopping calendar, and we are already seeing businesses promoting sales in the lead-up to the day. It is going to be busy on Friday but, given the ongoing Covid-19 situation, I would expect a good proportion of those sales to be made online.”
Stat 4: Buy Now, Pay Later
Buy now, pay later options like AfterPay and LayBuy allow shoppers to enjoy the items they’ve purchased, while interest-free payments are broken down into installments (usually weekly or fortnightly). BNPL spend in the third quarter of 2021 was 38% higher than the same period last year, and up 125% on the same quarter in 2019 - year on year, it’s up 37%.
The Q3 report by NZ Post points out the correlation between BNPL growth and the growth of the younger age groups online, and the growth of sectors like Clothing & Footwear and Department and Variety, which are both dominated by younger shoppers. “This would suggest BNPL is enabling the younger generation to get online and buy the things that are important to them.”
Options that simplify the online shopping experience like BNPL and Pay By Link could continue growing in popularity, thanks to the added convenience provided by these solutions.
Stat 5: Record-breaking online spend
Before the year could even end, the year to date online spend hit $6.9 billion as at November 2021, already over half a billion dollars above the full year spend of 2020. This would have grown significantly after the Christmas holidays, with Q4 predictions sitting around the $7.5 billion mark.
Many retailers aren’t sure whether they should invest more in traditional brick and mortar stores or online - but stats like these show the ever-increasing importance of having a digital presence. Using a Virtual Terminal and providing a consistently delightful customer experience through your omnichannel solutions will only drive sales further, thanks to the growing convenience.
2022 is set to be another big year for eCommerce in NZ as we continue to shift into the new normal, so it’s important to stay on top of these trends and ahead of the game. If you’re ready to move your business into the digital space, get in touch with us to chat about how you can incorporate some of our eCommerce solutions into your business today.
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