| Singaporeans are Receptive to Buying Online
Article from ACNielsen, world’s leading marketing information provider
2 November 2005
Singapore Singaporeans are receptive to shopping online with more than 8 in ten online survey respondents (81%) having shopped on the net.
The twice-yearly global ACNielsen Online Consumer Opinion Survey, the largest of its kind, polled over 21,100 respondents in 38 markets from Europe, Asia Pacific, North America, Latin America and South Africa. The study asked Internet users around the world about their online shopping experiences including when they last made an online purchase, what items were last purchased (see Table 2 for a list of items covered), the method(s) of payment used, what payment card was used the most for online purchases and the most preferred payment method when shopping online.
Across the globe, the most popular items purchased by internet consumers online are Books (34%), followed by Videos/DVDs/Games (22%), Airline Tickets/Reservations (21%) and Clothing/Accessories/Shoes (20%). In Singapore, Airline Tickets/Reservations generate the biggest online market (36%), followed by Books (19%), Clothings/Accessories/Shoes (16%), and DVDs/Videos/Games (16%).
In Asia Pacific, where the average number of purchases in the past month is five, online shoppers in markets like Singapore, Taiwan, Australia and China, made an average of five to six purchases in the past month. South Korea, which has the highest proportion (92%) of online shoppers in Asia Pacific, generated an average of four purchases last month.
The world’s biggest online shoppers are in Germany and UK, averaging seven and six purchases respectively in the past month. Along with Austria, Germany and the UK also have the highest incidence of online shopping with at least 95 percent of Internet users having purchased online.
It is not surprising that online purchases relating to travel rank high in Singapore, as Singaporeans are known to be avid holiday seekers. Holidays/vacations ranked 2nd amongst Singaporeans when asked how they intend to spend their spare cash in the same survey.
“In addition to Singapore, airlines and online travel agents would be wise to target markets like Malaysia (55%), New Zealand (40%) and Australia (35%) for which Airline Tickets/Reservations are a common online purchase,” said Ashok Charan, Managing Director of ACNielsen Singapore.
What people buy varies widely by market. “International book sellers would want to make sure their websites accommodate Korean and Chinese languages as Books top the list of items purchased by the Chinese (56%) and South Koreans (50%). This represents tens of millions of consumers in those markets and this is growing rapidly,” said Mr Charan.
Meanwhile, in Japan, Groceries (26%) are the second most popular item purchased online after Books (30%). With an average of four purchases in the past month and over 69 million estimated online shoppers, Japan presents a big opportunity for online book sellers and grocery sites.
Over half of South Korea’s 29.4 million online shoppers have purchased Clothing/Accessories/Shoes online. South Koreans are also the most likely to buy Cosmetics/Nutrition Supplies online (34%), three times higher than the global average of 10 percent.
For most of these online purchases, credit card (59%) or bank transfer (23%) was used to make the payment. In Singapore, payment via credit card is undoubtedly the most popular and preferred method of internet transactions, far surpassing all the other payment options—72 percent of Singaporeans surveyed cited credit card as their top payment method, while half said it is their preferred choice.
The most often used payment card here is Visa, used by seven in 10 respondents here. Mastercard follows with 21 percent, while American Express is used most often by six percent of the people who have made online purchases.
About ACNielsen
ACNielsen, a VNU business, is the world’s leading marketing information provider. Offering services in more than 100 markets, the unit provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen’s market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns. To learn more, visit www.acnielsen.com.
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