Travel contributes 23% of net shopping in India: study

Wednesday, 23 October 2002, 07:00 Hrs
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NEW DELHI: Travel has emerged as the fastest growing category for Internet shopping in India, accounting for 23 percent of total consumer spending on the Net this year, a survey report said Tuesday.

The travel related Internet shopping is expected to grow at a phenomenal rate of 140 percent over 4 to 5 years with Indian Railways and domestic airlines launching online sale of tickets, said the International Data Corp (IDC) report.

The Indian business-to-consumer (B2C) e-commerce spending is expected to grow by 88 percent in 2002 to touch 2.38 billion. The spending is projected to cross 23 billion by 2006 at a compound annual growth rate of 79 percent.

"What is interesting is that travel has emerged as the fastest growing category for the B2C e-commerce segment," said Munish Myer, head (Internet, communications and convergence research) of IDC India.

"Currently it is estimated to be contributing 23 percent to the B2C market and is expected to account for nearly 60 percent of the B2C market by 2006," he said in a statement issued here.

The survey said "Internet-assisted commerce" has also grown by around 70 percent in 2001, estimated at 2.10 billion with financial services and home loans contributing for nearly 45 percent of the market followed by auto and real estate.

IDC conducted a survey among people, who have actually bought through Internet during June-September period, to understand the experiences and behaviour of Internet buyers.

While approximately 40 percent of the Net buyers preferred shopping on the focused shopping sites, an equal number did not have any specific preference between a shopping site and large portals offering shopping amongst other things, it said., an auction portal, has been a favourite with nearly 35 percent of the buyers having transacted on this site, the survey said.

While convenience has emerged as the single most important reason for buying on the Net, cash on delivery has emerged as the most preferred mode of payment, followed by credit card, it added.
Source: IANS
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