IOAI''s survey findingsnews
01 January 1900

The Internet & Online Association of India (IOAI) research report, conducted in association with Cross Tab Marketing Services, tracked internet user''s tendency for shopping online.

The research was undertaken with a view to understand the profile, internet usage, products purchased along with propensity to buy along with the nuances of shopping online with the shopper''s affinity and aversions to online shopping.

A total of 3,099 respondent''s views were solicited of which 55 per cent (1,716) had shopped online and 87 per cent (1,493) had shopped more than once forming the base of the report. Changing lifestyles and shopping habits make this a shopping medium impossible to ignore.

The report makes actionable recommendations on how online retailers can fill gaps in the online environment as well as how they can utilise unique elements of the online shopping experience to create a competitive advantage over the physical retailing world.

The e-commerce industry: Rs570 crores worth of e-commerce conducted online in 2004-2005 to grow to Rs 2300 crores by 2006-2007, an estimated 300 per cent+ growth. 55 per cent of visitors to e-commerce sites have adopted the internet as a shopping medium.

The regular online shopper: Of the 55 per cent of online shoppers (base 1,716) 87 per cent (1,493) of shoppers have shopped more than once and have been termed ''as regular shoppers''. They form the ''base'' for this report of users who have transacted online to buy products services ''more than once''

Age and gender:
25 per cent of regular shoppers are in the 18-25 age group,
46 per cent in the 26-35 age group
18 per cent in the 36-45 age group
85 per cent of online shoppers are male
15 per cent of online shoppers are female representing a 15-million strong market by 2007-2008 (IOAI Estimate: 100 million Internet users by 2007-08)

Shoppers'' education and profession:
83 per cent of the user base is educated with a graduate or post graduate degree, it represents an educated audience.
54 per cent of online shoppers are at an executive level.
24 per cent are professionals or self-employed, indicating an assured spending power.

Internet access and savvy-ness:
76 per cent of online shoppers access the internet from their office, 63 per cent from home
24 per cent from cyber cafes.
Shoppers accessing the net through multiple access points represents a dismissal that internet penetration is no more only PC-dependant. All internet activity support e-commerce in an allied or primary capacity.

Purchase history:
62 per cent of shoppers having shopped for more than a year.
37 per cent of online shoppers have started shopping online in the last 12 months.
67 per cent of online shoppers have shopped online as recently as three months showcasing the growing acceptance of e-commerce.

Frequency of purchases:
67 per cent of online shoppers have shopped online as recently as three months showcasing the growing acceptance of e-commerce.
53 per cent of online shoppers have shopped online more than five times,
27 per cent of online shoppers have shopped online more than 10 times.

Usage by state / city:
Maharashtra: 29 per cent. Mumbai 24 per cent
Delhi NCR: 9 per cent
Tamil Nadu: 11 per cent. Chennai 7 per cent
Karnataka: 10 per cent. Bangalore 6 per cent
Uttar Pradesh : 7 per cent. Lucknow:2 per cent
West Bengal : 6 per cent. Kolkatta 5 per cent
Andhra Pradesh 5 per cent. Hyderabad : 4 per cent
Rajasthan : 5 per cent.
Gujarat 4 per cent. Ahmedabad 2 per cent
Kerala: 3 per cent .

Top city / product preference:
Mumbai: 24 per cent. Holds the top slot for online shopping in every category, except jewellery.
Delhi: 19 per cent. Fast competing with Mumbai in online shopping for accessories, apparel, gifts, home appliances categories and beats Mumbai to the first position in jewellery purchases.
Chennai: 7 per cent. Ranks 3 for railway tickets, airline tickets, magazines, home tools, toys, jewellery, beauty products and sporting goods categories.
Bangalore: 6 per cent. Ranks 3 for books, electronic gadgets, accessories, apparel, gifts, computer peripherals, movies, hotel booking, home appliances, movie tickets, health and fitness products and apparel gift certificates.
Kolkata: 5 per cent. Jumps to rank No. 3 in online music sales online and is ranked No. 4 for movies and music categories.
Hyderabad - Secunderabad: Surges to rank 4 for movie tickets and pushes Chennai to rank 5 in this category.
Lucknow: 2 per cent. Jumps to rank No. 4 for beauty products category.
Ahmedabad: 2 per cent. Ranks 5 for the toys category.
Jaipur: Moves to the top eight cities for books, music, home tools and movie tickets.
Nasik: Makes an entry in apparel gift certificate and sporting goods.
Trichy: Makes its debut in the health and fitness products category.
Kanpur: makes it debut in the railway bookings category.

20 Products bought online:
Books: 41 per cent
Electronic gadgets: 40 per cent
Railway tickets: 39 per cent
Accessories apparel: 36 per cent
Gifts: 35 per cent
Computer and peripherals: 33 per cent
Airline tickets: 29 per cent
Music: 24 per cent
Movies: 21 per cent
Hotel Rooms: 20 per cent
Magazine: 19 per cent
Home tools and products: 16 per cent
Home appliances: 16 per cent
Toys: 16 per cent
Jewellery: 15 per cent
Movie tickets: 15 per cent
Beauty products: 12 per cent
Health and fitness products: 12 per cent
Apparel gift certificates: 10 per cent
Sporting goods: 7 per cent

Satisfaction index:
18 per cent of online shoppers are ''highly satisfied'' with online shopping.
62 per cent are ''satisfied'' with their online shopping experience making a case for repeat purchases and peer to peer recommendations on this interactive medium.
17 per cent are ''neither satisfied nor dissatisfied''.
3 per cent of online shoppers are ''dissatisfied'' with online shopping.

Top 5 reasons for shopping online:
70 per cent of online shoppers like ''home delivery'' about online shopping.
62 per cent like it because of its ''time saving''.
60 per cent of online shoppers like the ''24x7''.
45 per cent like its ''ease-of-use''.
39 per cent of online shoppers like product comparisons.


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IOAI''s survey findings