Indian online shopping

MasterCard Worldwide recently published the report, "Economic Crisis and Preference for Online Shopping in Asia Pacific, Middle East and Africa". They conclude that the internet is revolutionising shopping in India.

Questionable sample data

A caveat should be added. The India sample totaled just 500 people and was restricted to individuals aged between 18 and 64, with bank accounts and who accessed the internet at least once a week.

This report highlights the difficulty of gathering representative data in India. Its huge population, urban versus rural populations and socioeconomic contrasts make it difficult to research. Illustrating the point, mean income of the sample is equivalent to US$ 23,386, over 24 times the country average.

Increased frequency, decreased value

During Q4 of 2008 average frequency of Indian online purchases increased to 2.9, up from 2.6 twelve months previous (see Chart 1). However, the value of these transactions declined, US$ 552 versus US$ 625 during Q4, 2007 (see Chart 2).

Popular purchases

Most popular purchases were airline tickets (54%), home appliances and electronic products (48%) and CD's and DVD's (44%). Of all Asia Pacific markets, India is the only one where the 18-29 year old age group has the highest average online spend.

Sustained trend

Although not representative, the findings highlight an interesting trend. It appears that the financial slowdown is driving online shopping sales. Benefits include the fact that the internet allows for greater price comparison, if delivery is possible it also removes geographic limitations.

Economic slow down or economic growth, as internet penetration increases expect Indian online shopping to drive growth in Asia Pacific.

For a full copy of the report click here.

Source - Charts from MasterCard Worldwide report - Economic Crisis and Preference for Online Shopping in Asia Pacific, Middle East and Africa