NZ's mobile commerce market to reach nearly $10 bn by 2019
Frost & Sullivan: New Zealand's mobile commerce market to reach nearly $10 billion by 2019
-~Strong CAGR of 20%; with entertainment and physical goods leading purchases ~
AUCKLAND, New Zealand, Sept. 30, 2014 /PRNewswire/ -- 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. 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 carrier's mobile data network or a WiFi connection).
Frost & Sullivan's New Zealand Mobile Commerce Market 2014 estimates total expenditure via mobile devices at $3.9 billion in 2014. Services, such as travel and financial services, account for the largest category of expenditure at $2.2 billion, followed by purchase of physical goods at around $1.2 billion. Expenditure on entertainment is estimated at $0.2 billion and media purchases, such as tickets, e-books and other digital content, is estimated at $0.3 billion.
New Zealand's mobile commerce market is predicted to grow strongly at a CAGR of 20%, increasing from $3.9 billion in 2014 to $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," explained Harpur.
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 Zealand's 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 elaborated.
Mobile devices are becoming an integral part of omni-channel retailing as its immediacy allows online retailers opportunities to engage shoppers with relevant offers when and where they are making buying decisions, encouraging impulse purchasing. Tablets are also a very important tool in assisting retailers with their customer service and selling process, though a large proportion of New Zealand retailers that are not capitalising on the benefits possible from using tablets as a tool this way.
Frost & Sullivan's New Zealand Mobile Commerce Market 2014 report forms part of the Frost & Sullivan New Zealand Digital Media program. All research services included in this subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. If you are interested in more information on this study, please send an e-mail with your contact details to Donna Jeremiah, Corporate Communications, at email@example.com.