ecommerce-shopping

American Express and Nielsen’s survey titled ‘Understanding Online Consumers’, conducted across 6 cities – Delhi, Mumbai, Bengaluru, Jaipur, Ahmedabad and Hyderabad states that 70% of Indian consumers preferred online shopping with cards over COD, for quick refunds. Professionals aged 26-30 preferred cards over COD and claimed to have shopped online in the last year.

The study did not mention its sample size, nor the timeline unless specified so, so it’s best to take it with a pinch of salt.

Utility bill payments
3 out of 4 people pay utility bills online, People aged 18-30 years showed 81% adoption rates for online utility bill payments. People in Delhi and Bangalore did this the most, followed by Jaipur at 75% and Ahmedabad a 72% and mumbai at 69%.

Discounts driving online shopping
– 60% people said that they shopped online while discounts were on, 40% buy online due to cash back offers, 38% because of discount coupons and 35% because freebies and additional offers.

– 99% in 18-25 years and 98% in 26-35 years age group said they shopped online frequently because they could pay online and compare products, while 61% of 46-50 year olds had shopped online in the last year and 37% intend to shop online in the next 12 months.

– 51% of metro users intended to buy a mobile/table online, while 37% for the same in Tier I users.

From the archives of 2011: Mumbai Prefers To Shop Online: ASSOCHAM Survey

Mode of payment

– 74% of women used credit and debit cards to shop for mobiles 98% of the time, book flights 56% of the time. 98% of women users had mobile apps as compared to 81% men.

(Debit and credit cards on the rise: As of December 2015, India had a total of 22.74 million credit cards and 643.19 million debit cards in operation, according to the Reserve Bank of India. Number of transactions on credit cards grew by 24% while it rose by 47% for debit cards for the year ending December 2015.)

Ticket sizes
– The average online monthly spend was Rs 9,400, Rs 10,900 in metros, Rs 8,000 in Tier I cities. The ticket size will increase to Rs 16,000 (timeline not mentioned),

– 60% of the ‘home budget’ included online shopping, travel purchases and utility bill payments, because of discounts.

(Low spenders continue spending low: Earlier this week, Pankaj Chaddah, co-founder of Zomato, said that ~70% of the customers whose first order was lower than Rs 200 had not spent more than Rs 300 on future orders.)

Travel

– 44% wanted to book their own tickets, this was 60% in metros.

– 42% wanted to book through online travel portals, where 93% was air travel.

– Online travel booking was preferred for convenience 57% and deals for 51%.

– 64% of experienced travellers bought travel insurance online.

– Most users making online travel bookings are in the age group of 26-30 years.

(Cleartrip traffic: In December, we reported that 59% of Cleartrip’s overall traffic and 46% of all transactions on the platform came from mobile, a growth of 24% growth in quarter-on-quarter (QoQ) traffic; with a 17% growth in air transactions and 41% growth in hotel transactions during the same time period.)

Also read: 38% of debit cards issued in India are on RuPay card network: report

Image Credit: Jorge Franganillo under CC BY 2.0