Around 81 per cent of Internet users in India visit online shopping sites but only 55 per cent actually buy something, a recent survey has found. As many as 93 per cent of these users, however, are aware that they can shop online. This is in the backdrop of Rs 570 crore of e-commerce being conducted online in 2004-05, which is expected to grow by 300 per cent to Rs 2,300 crore by 2006-07.
The survey, titled 'The Cyber Window Shopper', was carried out by the Internet and Mobile Association of India (IAMAI), and aimed at identifying the opportunity for tapping cyber shoppers in India. In all, 3,099 respondents were touched by the survey.
Security, pricing and delivery were found to be the three reasons why most shoppers do not shop on the Internet. Seventyone per cent of the respondents said that they would shop online only if there were third party security guarantees. While 90 per cent indicated they would buy from a website only if it gave discounts, 86 per cent said they might buy online if the products were not available in brick-and-mortar stores, 84 per cent said they would buy online only if the delivery was free.
According to the survey, among the states, Maharashtra (19 per cent) has maximum Internet window shoppers 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). More than 50 per cent of the shoppers come from just five cities NCR/Delhi (17 per cent) leads followed by Mumbai (15 per cent), Chennai 98 per cent), Kolkata (5 per cent), and Bangalore (5 per cent). People from smaller towns like Ranchi, Bareilly, Meerut, Ajmer, and Mohali are increasingly shopping online.
The fact that 59 per cent of window shoppers preferred the cash on delivery option and 14 per cent wanted to use cheques/drafts indicates that they are not entirely comfortable with online payments via credit cards (12 per cent), debit cards (8 per cent), or direct debit to their bank account (5 per cent). Most (91 per cent) feel cash on delivery is the safest payment option followed by cheques/drafts (72 per cent).
Most window shoppers are in the 18-35 age group (78 per cent ) comprising mainly young professionals on an info-seeking mode, a prime demographic for advertisers. Most window shoppers are male (85 per cent ). Fiftyseven per cent window shoppers are unmarried, while 33 per cent are married and have children. The office (54 per cent) is their most preferred location for accessing the Net.
While 42 per cent access it from home, 35 per cent access the Internet from cyber cafes. Most window shoppers (77 per cent) are with either a bachelor's or post-graduate degree. Fortythree per cent shoppers work at an executive level, and 17 per cent are professionals, self-employed or businesspersons, with high disposable incomes and spending capacity.
While 94 per cent of Indians use 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). Fortyone per cent of window shoppers do online banking. Fifteen per cent trade online in shares, 22 per cent pay 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.
A majority of window shoppers (92 per cent) have used the Internet for more than a year. Thirtysix per cent indicated using it for more than five years and 35 per cent for 3-5 years. Most users (77 per cent ) access the Net for more than 5 hours per week, while 22 per cent access it for more than 20 hours every week.
