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11 March 2008
Singapore
Singapore, March 11, 2008—More than 85 percent of the world’s online population has used the Internet to make a purchase—increasing the market for online shopping by 40 percent in the past two years—according to the latest Nielsen Global Online Survey on Internet shopping habits. Globally, more than half of Internet users have made at least one purchase online in the past month, according to Nielsen, and in Singapore, close to two-fifth (39%) have done so.
“The Internet is no longer a niche technology—it is mass media and an utterly integral part of modern life. Almost no aspect of life remains untouched by online media. As our lives become more fractured and cluttered, it isn’t surprising that consumers turn to the unrivalled convenience of the Internet when it comes to researching and buying products,” said Fiona Lee, Director, Online Research, The Nielsen Company, Singapore.
“When The Nielsen Company conducted its first global survey into Internet shopping trends two years ago, approximately 10 percent of the world’s population (627 million) had shopped online,” said Ms Lee. “Within two years, this number has increased by approximately 40 percent (to 875 million).”
Among Internet users, the highest percentage shopping online is found in South Korea, where 99 percent of those with Internet access have used it to shop, followed by the UK (97%), Germany (97%), Japan (97%) with the U.S. eighth, at 94 percent. In Singapore, over eight in 10 (82%) consumers claimed to have made a purchase over the Internet before.
Globally, the most popular and purchased items over the Internet are Books (41% purchased in the past three months), Clothing/Accessories/Shoes (36%), Videos / DVDs / Games (24%), Airline Tickets (24%) and Electronic Equipment (23%).
Currently at over 66 percent Internet penetration, Singapore is one of the most highly connected countries in the world. Among Internet users here, 42 percent said they bought Airline tickets/reservations, 32 percent had made Tours/Hotel Reservations, and three in 10 (31%) had purchased Clothing/Accessories/Shoes in the past three months.
“Travel is a category extremely suited to the Internet due to the latter’s ability to provide efficient access to an extremely wide range of comparable information. Whilst certain areas of the travel industry were initially slow to utilize the benefits of the Internet, it is now one of the undoubted success stories of online, playing an integral part in the arrangements and experience of today’s traveler,” said Ms Lee.
Payment Methods for Internet Shopping
Credit cards are by far the most common method of payment for online purchases—60 percent of global online consumers used their credit card for a recent online purchase, while one in four online consumers chose PayPal. In Singapore, close to three in four (73%) who have made an online purchase in the past three months used a credit card.
“Shopping on the Internet with the ease of a credit card is especially appealing to consumers in small markets like Singapore, which sometimes do not import certain brands, or even if they do, the full range is not made available in the retail trade. The Internet has opened up a whole new world of shopping for these consumers,” said Ms Lee.
While Latin American and Asian online shoppers are also more likely to use credit cards than any other form of payment, debit cards are most popular among UK (59%) and U.S. (40%) online shoppers.
Selecting Online Shopping Sites
According to Nielsen, online shoppers tend to stick to the shopping sites they know, with 60 percent saying they buy mostly from the same site. “This shows the importance of capturing the tens of millions of new online shoppers as they make their first purchases on the Internet. If shopping sites can capture them early, and create a positive shopping experience, they will likely capture their loyalty and their money,” said Ms Lee.
Aside from familiarity (58%) when selecting which sites to shop at, Singapore’s Internet users also tend to rely on recommendations—personal (38%) and online (37%).
“Recommendations from fellow consumers — whether they are people they know or fellow online shoppers — play an enormous role in the decision-making process. The explosion in Consumer Generated Media over the last year means that this reliance on word of mouth, over other forms of referral, looks set to increase,” said Ms Lee.
Click here to download the full report.
About The Nielsen Global Online Survey
The Nielsen Global Online Survey is the largest half-yearly survey of its kind, aimed at gauging current confidence levels, spending habits/intentions and current major concerns of consumers across the globe. The latest survey, conducted from October to November 2007, polled 26,312 Internet users in 48 markets from Europe, Asia Pacific, North America and the Middle East. The survey is representative of all Internet users aged 15+.
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