Online boom a boon for locals

Liz Emett from Kauri Creations and Innovations, Whangarei, where online sales are booming for the Northland business. Photo / John Stone

Northland businesses are reaping an online boom as local, national and international spending over the internet soars.

Online spending in Northland was up more than 20 per cent this October on last year - and retailers are enjoying worldwide windfalls by adding online extras to their businesses.

Online domestic spending in the region was $4.64 million, an increase of 18.3 per cent and international spending was $2.39 million, up 25.2 per cent, according to BNZ and Marketview figures, with total online spending up 20.6 per cent.

Liz Emett of Kauri Creations and Innovations said the business' online shop was becoming increasingly popular and the company was offering virtual tours to attract more global attention. The store sells swamp kauri products online from its Whangarei factory in Nell Place, Otaika.

Ms Emett said many of those buying online were in the South Island or overseas and the online shop was a good option for those who had moved out of Northland. The store's products, including keys, clocks and furniture, were popular for birthday presents and weddings.

The shop offered Skype tours of the factory and Ms Emett said the virtual tours were particularly popular among those working in Auckland who couldn't get to the shop. Ms Emett said online shopping was the way of the future but Kauri Creations and Innovations would always keep the factory open to customers, for the locals and tourists.

Bernadette Norman, owner of Whangarei style icon Malletts Fashions, agreed that online was the way of the future and the store's biggest focus for growth.

"It's the modern way of shopping isn't it? We've been operating online for just over two years and our sales increased 100 per cent in the second year and October has been our best month yet, so it was a very good month for a lot of businesses.

"We only sell New Zealand labels and only put our better products online - we don't really sell the cheaper products online - and they go down really well. Australia is our main overseas market and they love our Kiwi labels."

Ms Norman said with pedestrian traffic past the CBD store falling, online was Malletts' best way of growing its business.

Nationwide, total online retail spending in October was up 9.3 per cent compared to October last year. Growth in purchases from overseas slowed down in October, while domestic merchants gained market share.

Caroline Beattie of Marketview said many factors, including the low New Zealand dollar, could affect online spending. She said it would be interesting to see what effect the increase in international retailers would have on online spending. November tended to be the bigger month for online spending than October as it came closer to Christmas.

According to BNZ's monthly update, sales for computers and electronic goods were up about 5 per cent this October on last. Online clothing spending was up 17 per cent and spending on newspapers and books was up 21 per cent. Online entertainment media spending was up 26 per cent and pharmaceutical and cosmetic goods up 35 per cent. Growth in online grocery shopping and at department stores was also strong, according to the update.