Foreword

As in June 2010, there are a total of 420 million Internet users in China and among them over 100 million has shopped on the Internet, giving e-commerce a huge consumer base. The spending on online shopping in China this year is expected to reach approximately RMB569 billion. With shopping websites sprouting, shopping habits are changing and that has directly stimulated usage and development of credit card products. To enable its customer banks to better understand consumption trends and dynamics in the Greater China region, MasterCard has introduced an online shopping survey. MasterCard hopes the findings of the survey will help achieve the aim of promoting synergistic development for it and its partners in the region.

With prices of general merchandise and inflation rates climbing consistently, consumers have become more money conscious. In general, prices of goods are more competitive in online shops and shopping online has clear convenience. It is taking shape as a new consumption and lifestyle trend drawing increasing consumer support.

According to MasterCard’s fourth and latest survey on online shopping habits, online shopping has become one of the most preferred shopping methods for consumers in Greater China. Consumers from China between the ages of 18 and 64 are the most frequent online shoppers in the region, with more than 80% having made purchases on the internet, followed by 66% in Taiwan and 49% in Hong Kong. Among all online shoppers in Greater China, female shoppers are the most enthusiastic, with those from China aged between 25 and 34, and those from Taiwan aged between 35 and 49.

The survey found that about two-thirds of consumers shop habitually on the internet. In the three months (June to September 2010), mainland China consumers had bought on average 5.6 items online per person, slightly more than that of 4.1 items in Taiwan and 4.3 items in Hong Kong. For online shoppers, the biggest concerns are the prices and quality of the products, and quality appears to be the key determining factor when it comes to purchasing health, beauty or dietary supplements.

Most consumers will plan ahead before making a purchase. They will usually find out about the features of related products first online. Consumers from Greater China however have quite distinct shopping habits – there are more impulse shoppers in China. Despite that these shoppers in China do browse online before shopping (70%), they will still make impulsive purchases and their number is on the rise. Consumers in Hong Kong (80%) and Taiwan (87.5%) are more prone to making a wish-list prior to shopping online. In all of the three regions, more competitive pricing is the main reason for consumers to shift from traditional shopping to online shopping.

Among the different online product categories, books, CDs, DVDs, household appliances and electronic products, fashion items and music download are the most popular. And special offers from restaurants, courier services, supermarkets, fashion retailers and travel agent websites are most appealing to consumers. China and Hong Kong consumers like to buy household appliances and electronic products, whereas Taiwan and also Hong Kong consumers use the internet for research, buying tickets to movies and concerts, and making air travel hotel reservations.

The survey noticed that more and more consumers in China and Hong Kong are buying consumer goods and daily household products on the Internet. The change is indicative of the diversity of modern shopping modes.

Aside from price and quality, there are other factors that consumers take into consider when they shop online. The findings of a MasterCard survey released in March 2009 showed that ethical shopping is a key factor in the buying decisions of consumers in China. Over 80% of the respondents purchased fair-trade or environmentally friendly items. Among the survey respondents who stated that they buy online, 86% considered fair-trade products and 71% preferred eco-friendly goods. The findings showed that shopping with a conscience is taking off in China. In Taiwan and Hong Kong, 70% and 60% respectively of the respondents who shop online are keen on buying fair-trade goods.

The MasterCard research also shows that reputable retailers are more preferred by consumers. Aside from Korea, China has a higher rate of online shopping frauds than those of other Asian countries. Thus, many consumers are willing to pay more to buying from reputable retailers.

Security of online shopping is a concern for a small proportion of consumers. Many consumers in Hong Kong and Taiwan hope that online retailers can provide additional services in this aspect.

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.