Shopping top reason for Indians to access internet: survey

Mumbai: Indians voted online shopping as the top reason to access internet, spending an average of about Rs 9,400 a month on e-purchases, followed by social networking, according to a survey.

The survey by American Express and Nielsen, titled 'Understanding Online Consumers', found 98 per cent respondents voting for online shopping as the top reason to access internet, closely followed by social networking (96 per cent) and banking (95 per cent).

The survey estimates the average online monthly spend of Indians at about Rs 9,400, which is poised to swell to Rs 16,000. In metros, the average spend is Rs 10,900, while in tier I cities, it is Rs 8,000.

"This is going to increase across cities to an overall ticket size of Rs 16,000. Consumers currently spend 60 per cent of their home budget online which is dedicated to online shopping, making travel purchases and utility bill payments," the survey said.

The survey was conducted across six cities ?- Delhi, Mumbai, Bengaluru, Jaipur, Ahmedabad and Hyderabad. "Shopping has always been the favourite pastime for Indians and now it has become the virtual pastime," said Manoj Adlakha, CEO, American Express Banking Corp, India.

It also said that the youth prefer cards over cash-on-delivery with quick and safe refunds being the key reason, and almost 70 per cent consumers preferred shopping with cards. The survey also revealed a growing affinity towards online payment of utility bills.

"Tech-savvy youth in the age group 18-30, aptly targeted by online recharge and utility bill payment platforms, show higher adoption rates (81 per cent) for online utility bill payments," the report said.

"Delhi and Bengaluru lead the country with 81 per cent respondents paying bills online, Jaipur and Ahmedabad close behind with 75 per cent and 72 per cent, respectively. Surprisingly, Mumbai bucked the trend with only 69 per cent respondents," it added.

Further, 60 per cent of respondents cited that they get enticed to shop online during discount days. Almost every consumer in the age group 18-35 admitted to shopping online frequently.

Only 61 per cent of consumers falling in the age bracket 46-50 have shopped online in the past year, while only 37 per cent have intentions of doing so in the next 12 months, showing a stark conservative approach towards online purchasing as we move up the age ladder, it said. The survey also states that Indian women score over men while using credit and debit cards.