New Zealands m-commerce market to reach nearly USD 10 bln by 2019 - report

Monday 6 October 2014 11:30 CET | News

New Zealanders are increasingly using tablets or smartphones to purchase a wide range of goods, content and services, including physical goods, travel, insurance, cinema tickets, music, news and e-books, a recent study reveals.

According to a recent report from Frost & Sullivan, entitled “New Zealand Mobile Commerce Market 2014,” 45% of all New Zealand consumers aged between 15 and 65 have made at least one mobile commerce purchase in the last 12 months. Mobile commerce involves the use of mobile device to undertake a wireless transaction performed over a carriers mobile data network or a WiFi connection.

The report estimates total expenditure via mobile devices at USD 3.9 billion in 2014. Services, such as travel and financial services, account for the largest category of expenditure at USD 2.2 billion, followed by purchase of physical goods at around USD 1.2 billion. Expenditure on entertainment is estimated at USD 0.2 billion and media purchases, such as tickets, e-books and other digital content, is estimated at USD 0.3 billion.

The study also adds that New Zealands mobile commerce market is predicted to grow at a CAGR of 20%, increasing from USD 3.9 billion in 2014 to USD 9.6 billion in 2019. Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice says, Entertainment is envisaged to be the fastest growing segment with a CAGR of 26%, with thrust from the strong uptake of paid music, movies and TV shows and games. Online news, online magazines and e-books will also display very high growth as a significant proportion of consumers move to view written content on mobile devices. The second largest growth segment, physical goods, is expected to experience 24% growth.

83% of New Zealanders over 15 years of age currently own a smartphone, up from 73% in 2013 and 64% in 2012. 53% of New Zealanders aged between 15 and 65 now regularly use a tablet. Frost & Sullivan expects that expenditure will be propelled more by greater willingness of consumers to transact on mobile devices than by further increases in mobile device penetration, as usage of smartphones and tablets is already approaching saturation, explains Harpur.

Finally, the survey points out that the marked increase in ownership and usage of mobile devices, particularly tablets, is transforming the way New Zealanders shop; be it from home, in a store, or whilst travelling. New Zealands shoppers are using their mobile devices to research products, check where they can buy products and whether they are in-stock, compare prices whilst in-store, get feedback from friends via social media, and purchase products. 21% of consumers frequently conduct research on products and services before coming to a retail store, Harpur elaborates.

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Keywords: New Zealand, m-commerce, tablets, smartphones, Frost & Sullivan, mobile commerce, mobile devices
Categories: Payments & Commerce
Countries: World
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