The Number of Indians shopping online grew 42 % over the last year, almost double the rate of growth of the internet medium (22%) - a sure proof of internet shopping gaining traction with value-seeking local consumers, despite concerns on online security and vendor trust.
What's more heartening is the medium's high research value in shopping, with 36% of all net users doing a pre-purchase product or service search online. A sizeable number, 5.9m consumers, representing 28% of the 25m odd people hooked on to the net, spent an estimated Rs 3,500-4,000 crore online last year. Time flexibility & home delivery convenience of the internet medium were the predominant reasons to buy online, and surprisingly, not low prices.
In this concluding part of a three-part series, ET in partnership with online research & advisory firm JuxtConsult's 'India Online '06', a huge 20,000 online users survey (with an additional offline 5,500 households, 21 cities sample) present the changing online buying habits of Indians. Two out of three online buyers (3.9m consumers) shop from home, and these home-based buyers account for about 56% (approximately Rs 2,000-crore) of the total online spends in the country.
Just about 1.5m consumers shop from their place of work with another half-a-million from cybercafes and other places with net access. Almost 45% of home buyers spend, on an average, between Rs 500 and Rs 2,000 per month online, compared to 37% for office-based buyers. Over a third, 37%, of home-based buyers shop online at least once a month.
Ticketing is fueling the rapid growth of online shopping, with almost a third of all buyers going for train tickets online in the past year. Almost a fourth, 23% and 22%, are using the medium for net-banking and buying air-tickets respectively. Books, electronics goods, clothes and gifts are some other products high on the net-consumers' basket.
On an average, every third online shopper who uses the net for a specific product or service search also ends up buying online, with the figure going as high as 60% for train tickets and almost 50% for clothes and accessories.Credit card and cash-on-delivery are the biggest mode of payment with 38 % and 32 % online shoppers using them for payments.