Kiwis spending more on experiences rather than things

Data shows Kiwis prefer to embrace the sharing economy (use, not own) and delve into digital offerings. Photo / 123RF

DVDs, Blu-rays, vehicle sat-navs and MP3 players have dropped off Statistics New Zealand's Consumer Price Index on the back of plummeting sales.

Data shows Kiwis are no longer spending money on these items, preferring to embrace the sharing economy (use, not own) and delve into digital offerings.

Statistics New Zealand senior prices manager Jason Attewell said consumers had changed their spending habits to keep up with changes in technology.

"People are changing what they buy to keep up with changes in technology, and as a result, we're removing several items from the CPI basket," Attewell said. "More people are going online to buy shared ride services, such as Uber, and shared accommodation services, like home-rental operators Airbnb and BookaBach."

The "substantial" decline in DVDs and CDs sales wasn't a surprise, Greg Harford, general manager of public affairs for Retail NZ, said, particularly with the number of specialist stores having gone bust over the past decade.

"It's been the case for a number of years, and certainly, DVDs and CDs are no longer found as plentifully in stores as they were," Harford said.

"It reinforces the fact that we're headed towards a digital age, and that's where and how consumers are wanting to consume entertainment."

Sales for consumer garden products - and sewing machines - were also on the decline, Harford and Statistics New Zealand said.

Housing and food remain the biggest categories for consumer spending.

"New Zealand used to be called a country of rugby, racing, and beer – but spending patterns are changing and Kiwis are increasingly keen on craft beer, body massages at beauty spas and football club memberships," Attewell said.

Consumer prices manager Matt Haigh told BusinessDesk that Kiwi households spend about $100 million per year on body massages.