The growing trend of Online shopping; 62% Delhiites prefer e-shopping
The growing trend of Online shopping; 62% Delhiites prefer e-shoppingNew Delhi, Aug 17 (KNN) With more than 100 million internet users, India has registered a phenomenal 100 per cent annual growth in online shopping, reveals the Associated Chambers of Commerce and Industry of India (ASSOCHAM) latest survey.
"With more India's online shopping registering a phenomenal 100 per cent annual growth, many retail chains and consumer durable companies are joining the Web bandwagon to tap the e-shopping market, “said Secretary General ASSOCHAM, D S Rawat, while releasing an ASSOCHAM survey report on Thursday.
The online shopping industry in India is fast catching on, not just in the larger metros but also in the smaller cities. At present the market is estimated at Rs 52,000 crore and is growing at 100 per cent per year.
Shopping trends of Indian consumers have also witnessed a significant change this Raksha Bandhan, leading to a record 65 per cent rise in online trends over the regular shopping compared to last year, adds the report.
"This festive season, there is a 65 per cent more traffic on online retail websites and shopping on ground has taken a back seat. Apart from convenience, rising fuel price, security reasons, online discounts and availability with abundance of choice keeping them indoors," Rawat added.
Delhiites have left behind all other cities in India shopping online. While Mumbaikars rank second, Ahmedabad ranks third in their preference for online shopping in the survey, for which around 5,000 shoppers in Delhi, Mumbai, Chennai, Bangalore, Ahmedabad, Kolkata among other cities were interviewed.
As per the survey 62 per cent of Delhiites prefer shopping online while 30 per cent prefer to shop in traditional markets like Sarojini Nagar, Lajpat Nagar, Karol Bagh, Janpath, Paharganj, Sadar Bazar and Chandni Chowk.
Around 6 per cent of respondents said they preferred to visit a mall for their shopping needs while 2 per cent said they preferred shopping at specialty stores.
In other cities like Chennai, 30 per cent of its population chose to buy daily routine products through e-shopping in 2012-13, which will go to 40-45 per cent in current fiscal for gift articles, magazines, home tools, toys, jewellery, beauty products and sporting goods categories.
Likewise, Kolkata’s share was 15-20 per cent in the last year, which might go up another 25-30 per cent in 2013-14. Online music sales and movies are the highest e-sale in the Kolkata. Similarly, Bangalore share is 20-25 per cent for books, electronic gadgets, accessories, apparel, gifts, computer peripherals, movies, hotel booking, home appliances, movie tickets, health and fitness products and apparel gift certificates in 2012-13 will touch the 45-50 per cent in 2013-14.
Non-resident Indians (NRIs) are more actively shopping online during the festive season. During Raksha Bandhan, online shopping by NRIs contributes 60-70 per cent of total shopping, whereas during Diwali, it increases to 90 per cent, adds the paper.
It also revealed that 35 per cent of regular shoppers are in 18-25 age group, 55 per cent in 26-35, 8 per cent in 36-45 and 2 per cent in the age group of 45-60. As much as 85 per cent of online shoppers are male as against 15 per cent female.
Majority of the working respondents said, "Online retail industry’s business is quite good. Heading out to shop on a day off by battling traffic, parking issues, and long lines for bill payment is quite a cumbersome process and this is the main reason for the shift in trend."
This business module is cost effective, easily accessible and profitable in many functional areas. Consumers and retailers both desire safe, simple and comprehensive online shopping that will truly realize the range of power of the Internet, adds the ASSOCHAM survey.
India has more than 100 million Internet users, out of which around half opt for online purchases and the number is growing every year. With such a large market size, companies, right from retail shops to consumer goods, are entering the web space to attract potential customers.
"In India, customers wait for the festive season to get the best deals on all their shopping needs. The idea is to provide customers with an unmatched shopping experience ahead of the festive season with a fabulous range of products at unbeatable prices," commented Rawat.
He further said, "Customer behaviour is changing dramatically. People are not only using the web to book air tickets and movie tickets but also do not hesitate in placing orders for mobiles, laptops and other consumer electronics and home appliances."
Most products bought and sold off through online comprise gift articles (58 per cent), books (42 per cent), electronic gadgets (41 per cent), railway tickets (39 per cent), accessories apparel (36 per cent), apparel (36 per cent), computer and peripherals (33 per cent), airline tickets (29 per cent), music (24 per cent), movies tickets (26 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), beauty products (12 per cent), health and fitness products (12 per cent), apparel gift certificates( 10 per cent) and sporting goods (7 per cent).
Of those who are averse to shopping online cited various reasons like prefer to research products and services online and then actually buy them from a store (30 per cent), find delivery costs too high (20 per cent), don’t want to share personal financial information online (25 per cent), lack of trust on whether products would be delivered in good condition (15 per cent), don’t have a credit/ debit card (10 per cent). (KNN/SD)