(2 February 2008 1:00 pm)

MUMBAI: Online shopping has caught up with the net savvy Indians in a big way.

78 per cent of the Indian respondents (those accessing internet) surveyed in a recent Nielsen Global Online Survey on Internet shopping habits, have used the Internet to make a purchase and more than half of the respondents (55 per cent) have made at least one online purchase in the past one month.

Nielsen India director online research N.S.Muthukumaran says, "The Internet is no longer a niche technology as far as Socio Economic Class A and perhaps even B is concerned-it is more powerful than mass media as it is interactive and it is an utterly integral part of modern life. Almost no aspect of life remains untouched by online media. As our lives become busier and cluttered, it isn't surprising that consumers turn to the unrivalled convenience of the Internet when it comes to researching and buying products".

Online shopping has opened up new avenues. Especially in the realm of traveling, the Internet has made it very convenient to book tickets. 73 per cent Indians have purchased airline tickets/reservations in the past three months, this percentage being the highest for any country in Asia Pacific.

More than 60 per cent of Irish and UAE Internet users bought airline tickets/reservations on the Internet in the last three months, making travel the fourth most popular shopping category on the web globally.

"The accessibility to a wide range of comparable information online, makes traveling a category that is extremely suited to the Internet and is a lucrative investment option for marketers," adds Muthukumaran.

Books (46 per cent), Electronic Equipments (29 per cent), Tours and Hotel Reservations (24 per cent), Videos/DVDs/Games (23 per cent), Event Tickets (23 per cent), Clothing/Accessories/Shoes (21 per cent), and Music (20 per cent) are some other popular purchases made online by Indians.

Payment Methods: Credit Card is the most common method of payment for online purchases made by Indians with 84 per cent opting for that payment option over others. It is also the highest percentage for any country in Asia Pacific for payments made through Credit Cards for online purchases. Debit Cards (29 per cent), Bank Transfers (24 per cent) and Cash on Delivery (13 per cent) are some other methods of payment that are popular amongst Indians.

Of those paying with cards, more than half (63 per cent) use Visa. The other payment cards used by Indians for their online payments are Master Card, American Express, Visa Electron, Visa Debit, and Maestro.

Turkish online shoppers (who represent the economic elite in that country) topped global rankings for credit card usage (91 per cent) for online purchases followed by 86 per cent of Irish online shoppers and 84 per cent of Indian and UAE online shoppers.

Selecting Online Shopping Sites: The majority of Indian online shoppers are loyal to the sites that they shop from. 54 per cent said that they buy from the same site while making an online purchase.

"Online shoppers tend to stick to the shopping sites they are familiar with. Capturing the online shoppers early and creating a positive shopping experience for them would prove beneficial in the long run for marketers," said Muthukumaran.

48 per cent of the online Indians were influenced by special offers on sites. "India is a promotion oriented country and for an Indian consumer special offers enhance the value of their shopping," Muthukumaran says.

General Surfing (40 per cent), Personal Recommendation (31 per cent), Online Advertising (26 per cent), Search Engines (22 per cent), and Online Recommendation and Review (22 per cent) are some other factors that influence online shoppers in India.

Usage of Internet: In India 20 per cent of those surveyed access the Internet every day. The major usage of Internet by Indians every day is for Emails (85 per cent), second highest percentage for Asia Pacific after Hong Kong (86 per cent), Instant Messaging (57 per cent), Accessing News, Sports or Weather Updates (46 per cent), Logging into Social Networking websites (42 per cent), Chat Groups (28 per cent), and Reading Blogs (24 per cent).

"Indians love networking with people. It is well known that Indians are one of the heaviest users of mobile phones. They exhibit similar propensity online as well, in areas which would help them stay connected with family and friends," said Muthukumaran.