The impact of internet purchase on retailing
Introductory Business Studies 304001
The main impacts of the internet on retailing in New Zealand. This topic can be analysed in a variety of approaches. For example, through the advantages and disadvantages of internet purchasing and conventional retailing, consumers' different attitudes and preferences and statistics of recent years containing data relating to the issue.
Internet shopping currently is massively popular. New Zealand is likely to be contributing to the online retail industry 3.19 billion dollars, with the total amount of of nearly two million Kiwis using internet ...view middle of the document...
The increase of GST in recent years also helped contributing to the unit price difference (Internet retailing New Zealand, 2012) because of the less amount of tax consumers will pay when purchasing online. When breaking the industry down to different portions, it is obvious that in some areas due to obvious pricing advantages, people's preferences tend to shift to online purchase.
However it isn't in every single circumstances that internet purchase has the edge. In fact recent surveys shows that 7 out of 10 people have never shopped through social media platform, however almost 40 percent do follow their favourite brands or retailers online (Stores hold against online, 2013). This is of course under certain situations. In fact when observing the industry from a microscopic point of view, situations can be completely upside down from each other. In the survey mentioned above, people who were relatively against online shopping mostly stated that interactions between customers and retail staffs are very important (Stores hold against online, 2013). Another point that is similar to it is that people tend to prefer in-store shopping, in other word to have a close look when purchasing a particular type of good or product.
The two points stated above both apply under specific types of goods and products. A chart which showed the value of internet retailing of different categories in the past few years shows that products like toys and games, health care products and home care products especially have relatively low values to other categories (internet retail New Zealand, 2012). According to the chart, in 2011 the three categories added up to a total value of only $6.3 million, compare to the total value for internet retailing which was $603.9 million with some categories like apparel and media products easily breaking the barrier of $100 million all on their own. The main characters for the three categories is they all require relatively complicated instruction guides in order to be used correctly and are highly personalised. This means consumers will need to communicate...