Bangalore : There is a greater appetite for online shopping among male shoppers in India than their women counter-parts, finds the
latest MasterCard Online Shopping Survey.

The survey, which serves as a benchmark that measures consumers’ propensity to shop online, was conducted in November and December 2012 and reached 7,011 respondents from 14 markets across Asia/ Pacific  region who were asked questions about their online shopping habits. In India, 500 respondents were surveyed online and were matched against the online population of the 18-64 year olds based on gender and age distribution. The survey and its accompanying reports do not represent MasterCard’s financial performance.

According to the survey, men in India led the way in online shopping (75.1% of men vs. 61% of women) and on an average, made 3.7 purchases, compared to 2.2 for women in the three months preceding the survey.

Additionally, among the respondents from India, more than half (53%) indicated that they have used the Internet for online shopping. The average number of items purchased by those who have shopped online in India in the three months preceding the survey has seen a slight increase, rising from 4.6 in 2011 to 4.8 in 2012. Across the various age groups, those in the 25 to 34 year-old group are most actively involved in online shopping.

In terms of spending, the following categories rate as the top 3:

1.            Airlines – average spend of USD 238

2.            Travel agencies – USD 129

3.            Hotels – USD 121

These numbers are indicative of a booming travel industry and a willingness of consumers to make travel-related purchases online, which also holds greater potential for cross-border transactions.

When asked about their online shopping experiences, 90.1% respondents in India expressed satisfaction with respect to their online shopping experience. Moreover, about two-thirds (66.9%) of the surveyed Indian respondents said that it is convenient to shop online.  To further enhance the online shopping experience, however, respondents expressed removing delivery and other additional charges as the top concern for improving their online shopping experience, followed by an assurance of a secure transaction and improving the user experience.

In descending order, regionally, the following countries lead with the most propensities to conduct online shopping:

1.            China (102 Index Points)

2.            New Zealand (87)

3.            Australia (85)

4.            Singapore (84)

5.            South Korea (82)

China’s score has increased by 4 Index Points from last year’s index.

Mobile Shopping

Even though three out of four respondents have access to the internet via their mobile phones, mobile shopping continues to remain low in India. Only 30% of those who have internet access on their mobile phones have actually purchased something online via their mobile phones in the three months preceding the survey.

Nonetheless, among those who did make purchases using their mobile phones, the survey noted that movie tickets and phone apps emerged as the key items purchased. High-value items, such as airline tickets also witnessed frequent purchase.

The key motivators to purchase on mobile include the ability to shop “on the go”, as well as the emergence of apps that facilitate online shopping on the handset – a critical factor that could potentially ignite this market in the future. Another indicator of its potential is that 22% of Internet-enabled mobile handset owners indicated an intention of buying something online in the next six months.

“Optimistic findings of the online shopping survey substantiate the advancement of                     e-commerce and mobile shopping as potential future platforms. MasterCard as a global leader in payment processing is delighted to be part of this movement via its presence in these spaces.”said Ari Sarker, division president, South Asia and country manager, India, MasterCard Worldwide.

Key Shopping trends

Mobile banking

Consistent with the rest of the region, mobile banking apps, at 49.2%, had the highest awareness-familiarity level in India., followed by SMS or MMS-based payments (37.9%), in-social-networking-app shopping (36.5%) and peer-to-peer mobile payments (36.4%). Mobile NFC registered low awareness-familiarity levels with only 31.3% of the respondents being aware or familiar with the technology.

For Mobile NFC Payments, 69.6% of the respondents who are aware or slightly familiar with the technology are likely try and adopt it in the first 12 months of its introduction. About the same have expressed interest in In-App Shopping (69.4%) and social-networking-based shopping apps (68.9%). The survey also reveals that Digital Wallets (68.2) and SMS/MMS-based payment apps (66.6%) are poised to be welcomed and tried by respondents in India.

Cross-border shopping

Given the option of purchasing from foreign websites, 1 in 2 respondents in India would still prefer to buy locally as they feel that they are able to find the required products within the domestic market. Other key barriers keeping shoppers in India from make cross-border purchases online include being afraid of “hidden charges” and that international merchants may not accept their form of payment.

MasterCard and its Suite of Research Properties

The MasterCard Worldwide Index suite in Asia/Pacific, Middle East and Africa includes the long-running MasterCard Worldwide Index of Consumer Confidence, as well as the MasterCard Worldwide Index of Women’s Advancement, Online Shopping, Index of Financial Literacy, and the Index of Global Destination Cities. In addition to the Indices, MasterCard’s research properties also include a range of consumer surveys including Ethical Spending and a series on Consumer Purchasing Priorities (covering Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping).

MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004.

MasterCard has also released a series of four books on Asian consumer insights, authored by Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard Worldwide and published by John Wiley & Sons.

Source : Shiva Kumar