Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Manufacturing and retail embrace internet benefits

Manufacturing and retail embrace internet benefits

Growing use of cloud services

The manufacturing and wholesale industry and the retail and hospitality sectors have emerged as clear leaders in online, as more New Zealand businesses begin to embrace the benefits of the internet.

In the latest MYOB Business Monitor Digital Nation Report, 41% of all local SMEs now operate a business website – up from 34% in March 2013. A further 7% operate a social media site as an online presence for their business, while 16% have both a website and a social media site.

MYOB CEO Tim Reed said from Auckland today that it is exciting to see more New Zealand businesses recognise the benefits of the internet.

“More New Zealand businesses are beginning to embrace the opportunities the internet is offering – from access to international markets to increased engagement with their customers,” says Mr Reed. “It’s particularly encouraging to see key sectors like manufacturing and retail leading the way.

These are businesses where the access to international markets and greater depth of customer interaction that the internet provides can make a real difference to the local economy.”

Of the main centres, Auckland has the highest level of online participation at 51%, with Wellington and Christchurch both on 48%. Across the rest of New Zealand, only 45% of businesses are online.

The survey highlighted the significant difference in online participation across industry sectors:

Sector Online presence

(business website

and/or social site)

Manufacturing & Wholesale 80%

Retail & Hospitality 67%

Finance & Insurance 59%

Business, Professional & Property 45%

Transport, Postal & Warehousing 37%

Construction & Trades 33%

Primary 23%

Those SME operators with a website report significant benefits in terms of new business, improved branding and customer engagement:

1. Generating more customer leads and enquiries (55%)

2. Enabling the business to have a more professional brand image (53%)

3. Made it easier for customers to do business (51%)

Interaction with customers (54%) and generating more leads and enquiries (37%) are also an important part of establishing a social media presence. Social media also enables businesses to have increased appeal to younger customers, according to 39% of SME operators.

Growing use of the cloud

In the latest Business Monitor, almost a third of businesses (32%) report that they are using cloud products and services at least some of the time.

Use of internet technology is strongest in Wellington, with 44% using the cloud, followed by Christchurch (37%) and Auckland (34%). Cloud usage drops significantly outside the main centres, to 24% of SME operators. The finance and insurance industry (56%) and business and professional services (39%) are the highest cloud users, while the primary industries (10%) and construction and trades (225) report the lowest use.

Cloud use is also likely to be more widespread, based on the range of services businesses use


1. Email - 86%

2. Online banking - 82%

3. Filesharing / Voice over Internet (VoIP) equal at 25% each

5. Buying products and services online - 24%

“As a leading provider of cloud accounting services designed to make business life easier, we are particularly pleased to see local SMEs enjoying more of the benefits of internet technology,” says Mr Reed

Internet access also an issue in some areas

Satisfaction with internet access outweighs dissatisfaction amongst SME operators, with 41% reporting they are happy with their current level of internet access, while 34% are dissatisfied.

In Christchurch, however, where businesses have become increasingly reliant on internet access due to the disruption of the rebuild, dissatisfaction with current access is stronger (44%). Further south, over half (53%) of SME business operators in Otago and Southland are unhappy with their internet connection. 47% of SME operators in rural areas also expressed dissatisfaction with their current internet connection.

Although the Ultra Fast Broadband (UFB) rollout is targeted at improving internet access it looks unlikely to have an immediate impact. Just 14% of local SMEs report they are currently connected to UFB, although 63% of SME operators who do not currently have access to UFB believe it would have a positive impact on their business.

“Building a robust high-speed national broadband network is an important aspect of providing the right infrastructure to support online business,” says Tim Reed.

“However, we also need to ensure businesses are not overburdened by cost, and can both understand and access all the direct benefits to ensure the country can becoming a highly connected, 21st For MYOB product information, research results, business tips, discussions, client service and more visit the MYOB website, or its blog, LinkedIn, Twitter, Facebook, Instagram and YouTube sites.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news