Mumbai: Undeterred by the economic downturn, average online spending by consumers in India rose by 42% to $3,442 in Q4 2008 as compared to Q3 2008, Visa said in its e-commerce consumer monitor, a survey conducted in the Asia-Pacific region.
On a quarter-on-quarter basis, the average online spending in the country was one of the largest at $3,442 in Q4 2008, up by 42% as compared to $2,419 in Q3 2008, the survey said
According to the survey, India ranked third in online shopping after Singapore ($4,018) and Hong Kong ($3,791) in the 12 month period ended December 2008.
“Our survey shows that online shopping appears to be resilient in the uncertain economy. As consumers are expected to keep a close eye on their finances, the ability to browse a wide range of retail offerings to compare prices and seek cheaper buys on the Internet seems to be leading budget conscious consumers to shop online,” Visa country manager (South Asia), Uttam Nayak, said.
In Asia-Pacific also, online spending by consumers in the last quarter of 2008 held steady compared with the previous two quarters, the survey said.
The respondents surveyed in Asia-Pacific region spent an average of $3,109 in the year ended December 2008.
Among the categories surveyed, the top three biggest online spend areas were all travel-related services.
“The highest areas of spending in the past 12 months were airline tickets ($970), online travel agents ($647) and travel accommodation ($527),” the survey said.
“The internet has strong appeal to Asia-Pacific consumers with wanderlust. From securing cost-saving Internet deals to making accomodation reservations, armchair consumers are tuned to the convenience of shopping for travel services online,” Nayak said.
Cross-border transactions over the Internet were reported to have risen in all the countries and territories surveyed.
“According to the average spend per transaction as reported by respondents, cross-border online spending rose by nearly 40% from $263 in Q3 2008 to $368 in Q4 2008,” the survey said.
On an average, the respondents spent $316 in the past 12 months on cross-border transactions, it said.
The trend to shop online looks set to continue with 81% of respondents stating they were likely to shop online again in the next 12 months with respondents from Korea (96%), Japan (90%) and Australia (83%) the most likely to make purchases online in the region, the survey added.