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Buying online no bait for shoppers, says study

29-June-2002
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Buying online no bait for shoppers, says study

FEWER people are shopping online in India now as compared to the same time last year, according to a new research finding from Taylor Nelson Sofres (TNS) Interactive.

TNS Interactive's third annual global e-commerce report shows that only four per cent of Indians have shopped online in the last four weeks in 2002.

Globally, the proportion of Internet users buying products and services online has failed to grow in the last 12 months, according to the report. While global internet usage has grown slightly, up from 31 per cent in 2001 to 34 per cent in 2002, the proportion of users making a purchase in the last four weeks remains at only 15 per cent, the same as in 2001, though slightly higher than the Indian proportion of users.

The research study is part of TNS Interactive's Global E-commerce Report 2002, which is based on more than 42,000 interviews in 37 countries. The India part of the study was conducted in April this year among 1,029 Internet users across SEC A and B groups representing the four metros of Delhi, Mumbai, Kolkata and Chennai.

The industry's failure to allay fears about online payment security is a major factor preventing growth in addition to knowledge-based issues, which continue to deter Net users to shop online. In all, about 27 per cent of users in India said they have not purchased goods or services online because they think it is too difficult and lack of knowledge on such aggravates the situation and hence, it is safer buying goods or services in a store. This compares with a global average across all countries covered by the report, of 30 per cent abstainers and 28 per cent who are not willing to shop online due to security reasons.

More positively, 16 per cent of the people in India have used the Internet in the last four weeks, compared to 13 in 2001 in the same period last year, suggesting a positive outlook for e-commerce retailers. While 29 per cent of Internet users in India have shopped online or offline, or who will shop online in the near future, a majority of 71 per cent have never shopped online and do not plan to shop online in the future. India lags behind the global average of 34 per cent penetration in Net usage.

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