Online shopping to hit Rs 12 billion in 2005-2006: IMAI

MUMBAI: With the approaching festivities of Diwali the shopping bonanza is all set to begin. India's Internet population currently stands at 28 million and is set to grow to a 100 million by 2007 with Rs 11.80 billion worth of transactions to be conducted in 2005-06.



In lieu of this population increase the Internet and Mobile Association of India (formerly known as the Internet and Online Association of India) has released the second in its series of Ecommerce Related research reports addressing the ?Cyber Window Shopper.?


The research report undertaken with Cross Tab Marketing Services with a view to understand the profile, internet usage, propensity to buy along with the shopper?s affinity and aversions to online shopping and disposition to shop online.

A total of 3099 respondent?s views were solicited of which 45 per cent (1716) had visited ecommerce sites but hadn't bought anything with 93 per cent (1285) were aware that they could shop online. Of this 1285, 81 per cent (1045) respondents visited online shopping sites regularly and form the basis of this report and are termed as ?Online Window Shoppers.?



This base provides an opportunity to understand the ?Cyber Window Shopper? who researches the products and services online as a regular online shopper and shops offline. This also provides an opportunity for online retailers to cultivate their market share and for Offline retailers to embrace this medium during the shopping festive season armed with information on Online Shopping behavior motivators and barriers.

"The Cyber Window Shopper report provides an excellent opportunity for retailers and marketers to cultivate their online market share especially with the Shopping Bonanza that accompanies our Festival Season. Online Shopping is expected to cross Rs 11.80 billion in 2005-06 and to ensure this momentum this report provides analysis and recommendations to understand the motivators and barriers of Cyber Window Shoppers. The extent to which cyber window shopping has become commonplace is clearly revealed by this report where more than 69 per cent of consumers would like to shop online. The report clearly indicates that ?security, pricing and delivery? are by far the most important deciding factors and would be extremely strong motivators for consumers to buy online. With an Internet population of 28 million currently set to grow to a 100 million users by 2007-08 combined with changing lifestyles and shopping habits makes this a medium impossible to ignore,? said Internet and Mobile Association of India president Preeti Desai.

Cyber Window Shopper Report - Research Highlights

The E-Commerce Industry:

Rs 5.70 billion worth of E-commerce conducted online in 2004-2005 to grow to Rs 23 billion by 2006-2007, an estimated 300+ per cent growth.

Age, Gender and Marital Status:

The largest segment of window shoppers is the 18-35 age group (78 per cent) comprising mainly of young professionals on an information-seeking mode, a prime demographic for advertisers. 85 per cent of window shoppers are male and 15 per cent female. 57 per cent of window shoppers are unmarried, while 33 per cent are married with kids.

Education and Profession:

Most window shoppers (77 per cent) are educated; with either a bachelor?s or post-graduate degree. 43 per cent shopper?s work at an executive level, and 17 per cent are professionals, self-employed or businessmen, with high disposable incomes and spending capacity.

Internet Access & Usage:

The office (54 per cent) seems to be the preferred location. 42 per cent access the Internet from home, while 35 per cent access the Internet from cyber cafes. A majority of window shoppers (92 per cent) has used the Internet for more than a year, which means the audience is well-versed in the nuances of the Web. 36 per cent have been using the Internet for more than five years and 35 per cent for three-five years. 77 per cent used the net for more than five hours a week and 22 per cent % use the Internet for more than 20 hours every week.

Internet Activity:

94 per cent using the Internet for email, Work-related activity comes second with 77 per cent, followed by surfing (66 per cent) and personal research (57 per cent). 41 per cent of window shoppers do online banking. 15 per cent did online trading in shares. 22 per cent have paid bills online and 11 per cent used the Internet to donate to charity ? an indication of the growing trust in the Internet while making financial transactions.

Respondents by States & Cities:

Maharashtra (19 per cent) leads as far as window shoppers are concerned followed by Tamil Nadu (15 per cent), Delhi (15 per cent), Karnataka (11 per cent), Uttar Pradesh (8 per cent), Andhra Pradesh (8 per cent) and West Bengal (8 per cent). Delhi/NCR (17 per cent), Mumbai (15 per cent), Chennai (8 per cent), Kolkatta (5 per cent), Bangalore (5 per cent) account for 50 per cent of the window shoppers with 41 per cent from the 'other' category.

Are ?Window Shoppers? likely to turn into ?Buyers??

* An opportunity to convert with an overwhelming 69 per cent indicated that they were very likely / likely to buy in the near future comprising 21 per cent of online window shoppers are very likely to buy online and 48 per cent stated they are likely to buy online.

Incentives for converting Cyber Window Shoppers to Buyers Online

* 71 per cent of respondents indicated that they were likely/very likely to buy online if there were third-party security guarantees.

* 90 per cent of window shoppers said they were likely/very likely to buy if given price discounts.

* 84 per cent of window shoppers indicated that they were likely/very likely to buy something if was delivered free.

* 86 per cent of respondents indicated that they are likely/very likely to buy anything online if it wasn?t available in brick-and-mortar stores.

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