Online Transaction on the Rise: Ipsos Study

Mumbai, November 08, 2017: Online Banking usages in India has increased to 78% (a jump of 43% in 3 years) according to an online Ipsos study exploring the changes in shopping habits and environments.

Similarly making travel reservation online has increased to 72% (a 32% jump in 3 years) and buying books online has moved up to 61% (a 9% jump in 3 years) according to the study conducted by Ipsos Global Advisor in 24 countries around the world interviewing more than 19,000 respondents.

In sync with global move towards online shopping and decline in usage and presence of physical retail establishments, India is seeing a surge in digital and convenience focused alternatives, though it does make exceptions when it comes to entertainment, banking and beauty regimes.

“Dual factors have brought about this behavioural change among Indian consumers: One, spurred by Modi government’s resolve to encourage digital payments and going cashless in the aftermath of demonetization, which pushed many Indians to adopted online banking for transactions. Secondly, Jio effect propelled many Indians to move to digital transactions as telecom giant Reliance Jio captured a large chunk of the market by its mass promotion of free internet time,” said Amit Adarkar, CEO Ipsos India.

Globally consumers report seeing fewer traditional “Main Street” businesses and taking the online route. The types of establishments that are most markedly vanishing from local shopping areas are: bookstores (reportedly seen less often by 39% of the more than 19,000 consumers surveyed globally), newsstands (37%) and furniture stores (34%).

In contrast, globally people are reporting seeing more or just as many drugstores and pharmacies (73%), stores or restaurants selling readily-prepared or takeout food (66%), and any type of chain or franchise store (66%).

Restless and outgoing Indians interestingly, are going more to banks (71%), sit-down restaurants (70%), stores selling readily prepared takeaway food (70%), drugstores and pharmacies (68%), hair and beauty salons (65%), movie theaters (65%), coffee houses and coffee bars (64%), and any type of franchise stores (60%). Though less on their radar are bars and pubs serving liquor (42%), furniture stores (51%), etc.

“While there is a sort of desertification of main street in more evolved markets across US, Europe and Latin America, Indians like to be out and socializing during personal time. It’s a paradox. Online has caught on but physical visit to bank, markets, bookstores, restaurants is the mainstay here, “added Adarkar.

Some interesting trends in other global markets

  • A quarter of global respondents (25%) say they have seen more stores and restaurants selling readily-prepared or takeout food in the last three years.
    • Nearly two in five Colombians (79%) say they have seen more stores or restaurants selling readily prepared or takeout food, narrowly passing China (78%) and Mexico (78%). 70% Indians reported a similar trend.
  • Notably, the same number (25%) say they have also seen more empty or vacant stores.
    • In Japan and Great Britain, 65% say they have seen more empty or vacant stores more often than they did three years ago, closely followed by Spain (62%). For an upcoming organized retailing country like India, only 41% said they have seen vacant or empty stores.

Sparking these changes in local shopping areas, consumers report shopping online more often than they did three years ago:

  • On the whole, consumers in China, Great Britain, and Poland are those most likely to report shopping online more or as often as they did three years ago; close on the heels, 65% Indians say they would shop online. Peru, Hungary and Serbia tend to show the lowest proportions of consumers who say so.
  • Globally only 45% people report banking in person more or as often as they did three years ago; nearly three quarters of people from the 24-country Ipsos study report banking online more or as often as they did three years earlier (71%); 78% Indians too report banking online.
  • Globally the list of in-person purchases, 77% report buying food in person more or as often as they did three years ago; This is followed by 71% for shopping at large retail stores and 67% for shopping at small retail stores.

Though shopping environments continue to change, those effects do not impact self-reported personal care and social activities evenly. Many still report going to beauty salons (57%), going to bars (51%), and eating at restaurants (50%) more or as often as they did three years earlier.

About the Study

These are the findings of a Global Advisor survey on shopping behaviors. In total 19,000+ interviews were conducted between September 22 – October 6, 2017 among adults aged 18-64 in the United States and Canada, and adults aged 16-64 in all other countries.

The survey was conducted in 27 countries around the world via the Ipsos Online Panel system. The countries reporting herein are Argentina, Australia, Belgium, Brazil, Canada, Chile, China, Colombia, Hungary, Italy, France, Germany, Great Britain, India, Japan, Mexico, Peru, Poland, Russia, Saudi Arabia, Serbia, South Africa, South Korea, Spain, Sweden, Turkey, and the United States.

Between 500 and 1000+ individuals participated on a country by country basis via the Ipsos Online Panel. The sample was 1000+ in Australia, Brazil, Canada, China, France, Germany, Great Britain, Italy, Japan, Spain, and the United States. In all other countries the sample was 500+. The precision of Ipsos online polls is calculated using a credibility interval with a poll of 1,000 accurate to +/- 3.5 percentage points and of 500 accurate to +/- 5.0 percentage points. For more information on Ipsos’ use of credibility intervals, please visit the Ipsos website.

Where results do not sum to 100, this may be due to computer rounding, multiple responses or the exclusion of don’t knows or not stated responses. Data are weighted to match the profile of the population.

For more information about conducting research intended for public release or Ipsos’ online polling methodology, please visit our Public Opinion Polling and Communication page where you can  download our brochure, see our public release protocol, or contact us.

 

About Ipsos Public Affairs

Ipsos Public Affairs is a non-partisan, objective, survey-based research practice made up of seasoned professionals. We conduct strategic research initiatives for a diverse number of American and international organizations, based not only on public opinion research, but elite stakeholder, corporate, and media opinion research.

Ipsos has media partnerships with the most prestigious news organizations around the world. In Canada, the U.S., UK, and internationally, Ipsos Public Affairs is the media polling supplier to Reuters News, the world’s leading source of intelligent information for businesses and professionals. Ipsos Public Affairs is a member of the Ipsos Group, a leading global survey-based market research company. We provide boutique-style customer service and work closely with our clients, while also undertaking global research.

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks fourth in the global research industry.

With offices in 88 countries, Ipsos delivers insightful expertise across five research specializations: brand, advertising and media; customer loyalty; marketing; public affairs research; and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,782.7 million in 2016.