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Indians beat world in cyber shopping

26-December-2005
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Indians beat world in cyber shopping

Dwellers of the world wide web in India are now making more purchases online than the global average. Airline tickets have become the number one item on the shopping list, with over one-third of online Indians buying their tickets online.

A recent study by ACNielsen, covering 38 markets and over 21,100 respondents across the globe has revealed that more Indians are taking to shopping online.

Considering that net savvy people are still a minority in India, this is a revelation. At last count, India had close to 40m or just 4% of the total population using internet.

Indians clocked 5.2 purchases in the most recent month of online purchases. This is higher than the global average of 4.9 purchases in the previous month. ACNielsen ORG-Marg, attributes this higher number of purchases to two factors.

The advantages of convenience in terms of shopping and the ability to compare offers is one advantage. Two, the ability to purchase items not available nearby would matter to people.

Across the globe, the most important items purchased online are books (34%), followed by videos and games (22%), airline tickets/reservations (21%) and clothing/shoes (20%).

According to ACNielsen research more than 627m people have shopped online globally. Over 135m people have purchased DVDs and video games while approximately 135m have made plane reservations.

Over 128m people have bought clothing, apparel and shoes and over 112m have paid for music downloads or CDs. Globally, over 106m people purchased electronic devices and close to 98m bought computer hardware.

In India, books followed airline reservations closely, with 35% of netizens buying them online. Nearly 24% have bought electronic items and more than 20% have purchased items such as apparel, music and electronic entertainment such as movies, DVDs and games.

The most favoured mode of payment for online purchases in India is the use of credit cards followed by cash-on-delivery.

Online shopping in India is poised for greater acceleration as more manufacturers and providers integrate the Internet into their sales model. As PC and internet penetration grows, the key to increasing online purchases will remain in the hands of marketers.

Thus far the active service industries, such as retail banking and airlines have laid the groundwork for harnessing the power of the internet in India.

The necessity to drive down costs has played an important part in drving this change. The tipping point of the online shopping boom will require the active participation of the consumer marketing companies from manufacturing industries.

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