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Nielsen Online Shopping Trends Q1 2010

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Nielsen Online Shopping Trends Q1 2010
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Global Trends in Online ShoppingA Nielsen GlobalConsumer ReportJune 2010Online Shopping Around the WorldThe Internet has transformed many aspects of life, but perhaps none more so than how we shop for goods and services. While it’s still nice to stop by a store to touch and see products, the convenience of online shopping can’t be beat. And for some services, such as booking travel or buying concert tickets, the ability to do so online has made the process much easier and more efficient. The Nielsen Company conducted a survey in March 2010 and polled over 27,000 Internet* users in 55 markets from Asia What product/services do you intend to purchase Pacific, Europe, Middle East, North America and South America online in the next 6 months?to look at how consumers shop online: what they intend to Global Averagebuy, how they use various sites, the impact of social media and other factors that come into play when they are trying to Booksdecide how to spend their money. What we found was that 44Clothing/Accessories/Shoes36there are some products bought online that are universal, and Airline ticket/reservations32others that still have yet to build a significant share of trade. Electronic equipment 27Further, while checking online reviews are popular for some Tours/Hotel Reservations26products—particularly consumer electronics and cars—shoppers Cosmetics/nutrition supplies22still trust the recommendations of friends and family most. Event Tickets20Computer Hardware19Vacations are High Priority for Planned Videos/DVDs/Games18Online PurchasesGroceries18Music16Global online consumers say that books and clothing will Sporting Goods13%continue to top the list for planned online purchases in the Toys/Dolls11next six months, which follows the trend reported in a 2009 Computer Software 11Nielsen survey where 46 percent of global consumers said Flowers8they purchased books in the past three months and 41 Automobiles & Parts7percent bought clothing online. Baby supplies7Alcoholic drinks6However, intent to purchase airline tickets and to book tours Sports Memorabilia5and hotel reservations show signs the economy is improving. Car hire4In fact, compared to 2009 where 24 percent of connected Other7consumers said they purchased airline tickets online and 17 I do not plan to make an online18percent made hotel/tour reservations via the Internet, intent purchase in the next 6 monthsto make travel arrangements online in 2010 has increased seven Base : All respondents n=27,665Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 2010percentage points and nine percentage points respectively.Other engaging products and services tagged for future online purchases include electronic equipment, cosmetics/nutrition supplies, event tickets, computer hardware, videos/DVD’s/games and groceries.*See Page 10 for Note About Worldwide Internet Penetration2Online-Only Shops Have Greatest Global Top 5 Products/Services Global Consumers Site AppealExpect to Purchase Online in the Next 6 MonthsGlobally, one-third of online consumers say they primarily do RankProducttheir Internet shopping at retailers that have only an online 1Bookspresence (such as Amazon.com), followed by an equal 20 2Clothing/accessories/shoes percent of respondents who prefer sites that also have 3Airline ticketstraditional “brick and mortar” stores and those that allow 4Electronic Equipmentyou to select products from many different online stores. 5Tours/hotel reservations Only 16 percent of respondents globally indicate they Source: Nielsen Q1 Global Online Surveyhave never shopped online. Site preferences vary across the world. Half of North Americans In a sign that there remains tremendous room for growth, said they most frequently purchase from online-only stores, 44 percent of online consumers say they spend less than 5 while one-third of Latin Americans prefer sites that also have percent of their monthly spending online and 29 percent traditional offline stores. Almost half (47%) of online say they spend between 6 percent and 10 percent.consumers in the Middle East, Africa and Pakistan say they have never shopped online.What is your online shopping spending percentage of total monthly spending?What kind of websites do you purchase from 3most frequently when shopping online? 1 1111210531212855713161415181917162216137472730202517253229%%3920493114343191321551110548344644448351921172010APEUMEAPLANAGlobalI have never shopped online.AverageAPEUMEAPLANAGlobalSites that allow you to select products from many different online storesAverageSites for stores that you can only shop at onlineLess than 5%Between 6% and 10%Between 11% and 25%Sites that also sell their products through catalogs or over the phoneBetween 26% and 50%Between 51% and 75%Greater than 75%Sites that also have traditional 'brick and mortar' storesBase : All respondents n=27,665Base : All respondents shopping online (codes 1-4) in Q27 n=21505Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 2010Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 20103Opinions CountI would not buy the following products without One of the great benefits of online shopping is the ability consulting online reviews:read others’ reviews of a product, be they experts or simply Global Averagefellow shoppers. These opinions are most important when it comes to purchasing consumer electronics: 57 percent of Consumer electronics40online respondents consider reviews prior to buying. Reviews on cars (45%) and software (37%) rounded out the top three A car38most important online influences when making a purchase. Software28Online reviews and peer recommendations also played a key role for shoppers researching future purchases of consumer Telecommunications services22electronics, cars and travel, and 40 percent of online shoppers indicate they would not even buy electronics without Cosmetics21consulting online reviews first.Medication20Pity the product or retailer that consumers don’t like: while most online consumers (59%) said that they are not more Gaming devices19likely to share a negative product experience online via %Twitter or writing a review, 41 percent would.Personal care products18Insurance18I am more likely to share (write about/Tweet, Airline tickets18review, etc) a negative rather than a positive product experience onlineFood17Credit cards15Other19515760596768Base : All respondents n=27,665Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 2010%Top 10 Global Sites by % Active Reach49434041331Google81.78%322MSN/Windows Live/Bing61.82%APLAMEAPEUNAGlobal3Facebook54.48%Average4Yahoo!52.91%YesNoBase : All respondents n=27,6655Microsoft48.42%Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 20106YouTube46.58%7Wikipedia 34.93%8AOL Media Network 27.16%9eBay26.47%10Apple 26.11%Source: The Nielsen Company, April 2010 Countries include: U.K., France, Germany, Italy, Spain, Switzerland, Brazil, U.S., Australia4Online Shopping Around the World—Regional round-upConsumers all around the world shop online, but what they’re buying and how they use product reviews and social media to influence their decisions vary widely.Asia Pacificclothes, 40 percent plan to make an electronic purchase online. Web-savvy Malaysians like online shopping for booking travel, Chinese and Korean online consumers are the most prolific online with airline tickets and hotel/tour reservations the top picks. shoppers in the Asia Pacific region with 95 percent of Internet More online Australians intend to purchase event tickets and users intending to make a web purchase in the next six months. non-downloadable videos/DVDs/games than any other in the Conversely, over one-fourth of online consumers in Hong Kong region. And one-fifth of online Indian shoppers plan to buy (27%) and Thailand (26%) and one-fifth of residents in Japan, non-downloadable music.New Zealand, Indonesia and Australia do not plan an online Total online spending as a percentage of total monthly spending purchase in the upcoming months.varies by country with Chinese and Korean online consumers Koreans who shop online are most likely to buy books, cosmetics, allocating the most via the web than any other in the region. clothing/accessories/shoes and groceries via the Internet in the Online consumers in New Zealand, Australia, Malaysia and next six months. While connected Chinese also favor books and Hong Kong allocate the least.What is your online shopping spending percentage of total monthly spending?Asia Pacific Region1321112121123215516126710846510109129718911101119161619192222252426272631203327%363334313471636330635456575250404134352519AUCNHKIDINJPKOMYNZPHSGTHTWVNAPAverageLess than 5%Between 6% and 10%Between 11% and 25%Between 26% and 50%Between 51% and 75%Greater than 75%Base: All respondents shopping online in Q27 n=5618Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 20105Europe Intention to shop online in Europe is high—79 percent of online the Internet for clothing and shoes more than any other online European consumers plan to purchase products or services via shoppers in the region. Future online purchases for Norwegians the Internet in the next six months. Online consumers in Norway are likely to include a vacation or a show as indicated by their and Great Britain show the greatest propensity with almost 90 strong intent to purchase travel and event tickets. More than percent planning a web purchase in the near future. More online one-third of online Brits plan to purchase DVDs and games residents of Estonia, Croatia and Latvia indicate they would not online, while connected Greeks indicate a preference for be making any online purchases in the next six months than in electronic equipment and computer hardware. Web-savvy the rest of Europe (42%, 41%, and 41%, respectively).Israelis seek the Internet to purchase electronic equipment More than half of online Austrians who shop via the web plan to more than any other item and are the least likely in the buy books, while online Germans and Czechs intend to turn to region to purchase clothing or shoes online.What product/services do you intend to purchase online in the next 6 months?I do not plan to make an online purchase in the next 6 monthsEurope Region42 41 4134 32 32 3128 28 26 25 24 23 23 23 23 22 22 21211917171717 16 16 14 11EEHRLTHUBELVPTESTRNLILFIFRGRROUAITSERUDKCHCZDEIEATPLGB NO EU AverageBase : All respondents n=14,122Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 201079 percent of online European consumers planto purchase products or services via the Internet.6North AmericaWhat kind of websites do you purchase from Half of online Americans favor sites for stores that can only be most frequently when shopping online? shopped online and the majority of Canadian web shoppers are North America Regionsplit between a preference for online-only sites (31%) and those that have traditional physical stores (19%)1517The list of products and services that are favored by American 28and Canadian online shoppers is almost identical. Books, 67clothing and airline tickets are the items most likely tagged 10for online purchase in the next six months. %One-third of online Canadians say they don’t plan on making 504931an online purchase in the next six months, which is more than the one-fifth of connected Americans who said the same. In fact, 28 percent of online Canadian consumers indicate that 121111they have never shopped online compared to 15 percent of Americans. 191717When selecting the top three sources to guide decisions, online CAUSNA Averageproduct reviews are useful to 42 percent of American and 40 I have never shopped onlinepercent of Canadian web shoppers. Online reviews are most Sites that allow you to select products from many different online storesimportant when buying consumer electronics, cars and Sites for stores that you can only shop at onlinesoftware and when researching cars, electronics and travel.Sites that also sell their products through catalogues or over the phoneSites that also have traditional 'brick and mortar' storesBase : All respondents n=1,009Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 2010Top 10 U.S. Sites by % Active Reach1Google75.96%2Yahoo!65.01%3Facebook61.92%4MSN/WindowsLive/Bing56.24%5YouTube 47.60%6Microsoft43.60%7AOL Media Network 40.52%8Apple30.95%9Fox Interactive Media30.47%10Wikipedia 29.99%Source: The Nielsen Company, April 20107Latin AmericaConnected Brazilians are the most prolific online shoppers in the region with 84 percent planning to make an online purchase in the next six months. The items that top the list are books, electronic equipment, computer hardware and DVDs/games. Conversely, online Colombians are the least likely shop online in the near future—36 percent indicate they have no plans to shop virally in the next six months and more than one-fifth indicate they have never shopped online. Electronic equipment tops the list for planned online purchases for 34 percent of Venezuelan web shoppers followed by airline tickets (27%) and computer hardware (21%). Surprisingly, books—which typically tops the list for most online shoppers—was favored by only 18 percent of online shoppers in this country. Online purchase intent in Mexico is evenly divided among the top eight products and services: books (30%), electronic equipment (25%), tours/hotel reservations (24%) event tickets and music (22%), computer hardware (21%) clothing and video/dvd’s/games (18%). Also equally distributed is the choice of sites that connected Mexicans prefer when What kind of websites do you purchase from shopping online.most frequently when shopping online? More than one-third of online Chileans (36%) said they did Latin America Regionnot plan to make an online purchase in the next six months. Online reviews are most useful to Latin American consumers while researching purchases of consumer electronics, software and cars.2311192713312427Top 10 Brazil Sites by % Active Reach132417%8142522131Google90.56%202MSN/WindowsLive/Bing85.23%2517232542955123Orkut73.85%10913344UOL68.97%192671219105Microsoft61.65%ARBRCLCOMXVELAAverage6Terra 60.45%Sites that also have traditional 'brick and mortar' stores7Globo57.79%Sites that also sell their products through catalogues or over the phone8YouTube 56.73%Sites for stores that you can only shop at onlineSites that allow you to select products from many different online stores9iG53.35%I have never shopped online.10Yahoo!50.15%Source: The Nielsen Company, April 2010Base : All respondents n=3,006Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 2010 8Middle East / Africa / PakistanI am more likely to share (write about/Tweet, Shopping online is the most under-developed in the Middle review, etc.) a negative rather than a positive East, Africa and Pakistan region. Almost half (47%) of product experience online: online consumers indicate they have never made an online Middle East/Africa/Pakistanpurchase—the highest percent of any other region in the world. Of those connected consumers who have online access, one-third say they do not plan on making a purchase in the next six months.The most popular products and services for planned online purchase across the MEAP region are books (29%), airline 575758646660tickets/reservations (24%) and electronic equipment such as TV’s and cameras (23%). Other popular planned online %picks for South Africans are event tickets (33%) and non-downloadable music (26%). Online residents of the 434342United Arab Emirates intend to book travel (27%) and buy 363440clothing (25%). Web-savvy Pakistanis will look online to buy computer hardware (25%) and clothing (18%), although EGSAZAPKAEMEAPthey also lead the region saying they do not plan on making Averagean online purchase in the next six months (38%). YesNoSocial media is not yet playing much of a role in influencing Base : All respondents n=2,465consumers’ purchasing online, but online Saudis are most Consumer Confidence Survey – Q1 2010 • Field dates March 8, 2010 – March 28, 2010likely to use such sites to help make buying decisions. While the majority on online consumers in the region are not more likely to share a negative rather than a positive experience online, Egyptians and Saudis are more likely than any other in the region. Online reviews and opinions were most important when buying and researching cars, software and consumer electronics.Almost half (47%) of online consumersindicate they have never made an online purchase.9Country AbbreviationsRegion AbbreviationsArgentina ARMalaysia MYAP Asia PacificAustralia AUMexico MXEU EuropeAustria ATNetherlands NLLA Latin AmericaBelgium BENew Zealand NZMEAP Middle East, Africa, PakistanBrazil BRNorway NONA North AmericaCanada CAPakistan PKChile CLPhilippines PHChina CNPoland PLColumbia COPortugal PTCroatia HRRomania ROCzech Republic CZRussia RUDenmark DKSaudi Arabia SAEgypt EGSingapore SGEstonia EESouth Africa ZAFinland FISouth Korea KOFrance FRSpain ESGermany DESweden SEGreece GRSwitzerland CHHong Kong HKTaiwan TWHungary HUThailand THIndia INTurkey TRIndonesia IDUnited Arab Emirates AEIreland IEUnited Kingdom GBIsrael ILUkraine UAItaly ITUnited States USJapan JPVenezuela VELatvia LVVietnam VNLithuania LTAbout The Nielsen CompanyA Note About Worldwide Internet PenetrationThe Nielsen Company is a global information and This Nielsen survey is based on the behavior of respondents measurement company with leading market positions with online access only. Internet penetration rates vary by in marketing and consumer information, television and geographic region as reported by Internet World Stats:other media measurement, online intelligence, mobile North America .......................................................... 76.2%measurement, trade shows and related assets. The privately held company is active in approximately Oceania/Australia ................................................... 60.8%100 countries, with headquarters in New York, USA. Europe ...................................................................... 53.0%For more information, please visit, www.nielsen.com.Latin America/Caribbean ......................................... 31.9%Middle East ............................................................... 28.8%Asia ............................................................................ 20.1%Africa ........................................................................... 8.7%World Average ......................................................... 26.6%Copyright © 2010 The Nielsen Company. All rights reserved. Produced in the U.S.A. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. 10/1591

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