More Consumers Shopping Online Across Asia/Pacific, Middle East and Africa’s Emerging Markets

Dec. 26, 2010 - PRLog -- Singapore, December 27, 2010: Online shopping is gaining popularity in emerging markets across Asia/Pacific, Middle East and Africa (AMPEA), according to the results of a recent MasterCard survey on online shopping. Results of the fourth survey on online shopping conducted by MasterCard revealed a narrowing gap between emerging and mature markets in APMEA with consumers turning to online shopping sites for event tickets, online gaming, downloading music, purchasing books, and for travel (airline websites).

The MasterCard survey also uncovered a growing trend among APMEA consumers using their mobile phones to access the Internet, represented by 19% of respondents in 2010 versus 8% in 2009. Leading the trend of mobile Internet access in APMEA are 39% of consumers in South Africa, 33% in Singapore, 25% in India, 25% in Indonesia, 20% in Malaysia, 20% in Thailand and 20% in the United Arab Emirates (U.A.E.).

Online shopping is growing in emerging markets like Malaysia (55% in 2010 from 33% in 2009), which is now comparable to Australia (58% in 2010 from 63% in 2009), according to respondents who access the Internet to shop. The report also indicated an increase in the U.A.E. (42% in 2010 from 29% in 2009) among the percentage of respondents accessing the Internet for shopping. The survey was conducted from 3 September to 1 October 2010 and reached 8,500 consumers from 15 markets[1] across APMEA. The survey and its accompanying reports do not represent MasterCard financial performance.

Index on Online Shopping
This year MasterCard has released its first Index on Online Shopping. The Index serves as a benchmark that measures consumers’ propensity to shop online, and based on the following factors and questions:
•   For what purposes do you usually use the Internet?    
•   How likely is it that you will make an online purchase in the next 6 months?
•   Proportion of those who did not state: ‘prefer to shop in-store, to look at the physical product’ as a reason for not purchasing anything online in the past 3 months.
•   To what extent do you agree or disagree with each of the following statements:
(1) It is convenient to shop online
(2) I do not feel secure shopping online  

The scores are compiled based on the factors or questions listed above, offering a regional Index ranking of markets with consumers who are most likely to shop online. According to the scores from the 2010 MasterCard Index on Online Shopping, South Korea tops the Index rankings with a score of 63 in 2010. Japan is ranked second this year with a score of 57, followed by New Zealand (54), Australia (52) and Taiwan (51). Emerging markets have also gained ground with the U.A.E. coming in at 6th with a score of 47 then Malaysia (44), Singapore (40) and China (38). Thailand is closely on par with India with scores of 34 and 32, respectively, ahead of Hong Kong (29). Indonesia rounds the bottom three markets on the Index with a score of 17, Philippines (12) and South Africa (8).

Online Shopping Survey Findings
The most active consumers are from South Korea (85%), China (84%) and Japan (75%), according to respondents who are most likely to access the Internet for shopping. Shoppers in these markets also purchased the most items online within recent months (approximately from June to September 2010) with Chinese consumers averaging 5.6 items, up from 5.1 items in 2009. Number of purchases by consumers in South Korea & Japan remained steady from 2009 with 5.9 items and 5.1 items respectively.
“We’re seeing more people in the region go online for lifestyle purchases as well as day-to-day household items. This shift in consumer behavior really shows that today’s shoppers are diversifying not only what they buy, but how and where. This is marked by a growing trend of mobile Internet access among consumers in APMEA as they proactively seek better and more personal ways to shop online,” said Yunsok Chang, group executive, Global Products and Solutions, Asia/Pacific, Middle East & Africa, MasterCard Worldwide. “In this connected world, all kinds of people are shopping online for the best deals regardless of where they live - from tech savvy youth in China to business travellers from Korea to active young professionals in India.”

Additional highlights from the online shopping survey include:
•   Substantial Market Growth (Emerging): According to the 2009 survey findings, consumers in the U.A.E. and Malaysia were the least likely to shop online. This year’s results reported a substantial increase among consumers accessing the Internet to shop online in both markets:
o   Malaysia is up to 55% in 2010, from 33% in 2009
o   U.A.E. is up to 42% in 2010, from 29% in 2009
•   Stabilizing Market Growth (Emerging): Markets like India and Thailand, which reported major spikes in online shopping from 2008 to 2009, are still registering relatively high numbers. However, there are signs of a slight decline or slowing growth among consumers in India and Thailand who access the Internet to shop online.
o   India has dipped slightly to 67% in 2010 from 72% in 2009
o   Thailand has grown incrementally to 67% in 2010 from 63% in 2009
•   Slowing Market Growth (Mature): Mature markets like Australia and South Korea have reported a decline while Japan is reporting minimal growth according to consumers who access the Internet to shop:
o   Australia is at 58% in 2010 from 63% in 2009
o   South Korea has dropped to 85% in 2010 from 87% in 2009
o   Japan is now reporting 75% from 74% in 2009  
NOTE TO EDITORS: More information and previously released MasterCard survey results can be found at www.masterintelligence.com.

MasterCard and its Suite of Research Properties

MasterCard puts out a series of ongoing consumer surveys and research Indices in the Asia/Pacific, Middle East and Africa. These include the MasterCard Survey on Consumer Purchasing Priorities, the MasterCard Worldwide Index of Consumer Purchasing Resilience, the MasterCard Worldwide Index of Consumer Confidence and MasterCard Worldwide Index of Women’s Advancement.

Besides these, MasterCard also regularly releases its Insights reports; the series is part of its ongoing research and analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 70 Insights reports have been produced since 2004. MasterCard has also released a series of four books on Asian consumer insights, authored by its Asia/Pacific economist, Dr. Yuwa Hedrick-Wong and published by John Wiley & Sons.

The MasterCard Indexes and Insights reports are available at www.masterintelligence.com

About MasterCard Worldwide

As a leading global payments company, MasterCard Worldwide prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere.  MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide.  In 2009, $2.5 trillion in gross dollar volume was generated on its products by consumers around the world.  Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 22 billion transactions each year,  has the capacity to handle 140 million transactions per hour, with an average network response time of 140 milliseconds and with 99.99 percent reliability.  MasterCard advances global commerce through its family of brands, including MasterCard®, Maestro®, and Cirrus®; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass™ and MasterCard inControl™.  MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at www.mastercard.com. Follow us on Twitter: @mastercardnews.