Huge Global Potential for Online Shopping 08/08/00 The first worldwide study of e-commerce - published recently by Taylor Nelson Sofres (TNS) Interactive - reveals the extent to which online shopping is becoming a significant component in the purchasing of products and services. The landmark research - based on more than 30,000 interviews in 27 countries across four continents - represents a major new benchmark for assessing the progress of online activity across the world. It is also the first comprehensive study of the e-commerce marketplace allowing for direct country comparisons. Across all those countries surveyed - ranging from the US, Great Britain and Japan to Turkey, India and Thailand - the research reveals that 1 in 10 Internet users shop online during a month. However, 15% of users globally say that they have Śconsideredą shopping online but have not yet done so. Not surprisingly, the US - with the highest proportion of Internet users (58% of the population) - also has the largest percentage of online shoppers. More than 1 in 4 (27% of users in the US) shop online during a month. In contrast, only 1% of users currently shop online in both Thailand and Turkey. Other key findings of the survey include: Across all countries surveyed, average Internet usage stands at 27% 14% of all users in these countries plan to shop online within the next six months 13% of all users have bought products or services offline as a direct result of information found online Almost 3 out of 10 (29%) users who have shopped online have purchased books, with one in five (20%) purchasing CDs (compact discs) or equivalent According to Ulf Andersen, director of strategic marketing, TNS Interactive, "These findings are impressive. They suggest that the potential for online shopping among existing Internet users worldwide may realistically double in a relatively short time if those users who say they have considered shopping online - but have not yet done so - can be turned into actual shoppers. In addition, a lot of Internet users are gathering information online, but doing their shopping outside the Internet. However, there are clearly a number of barriers to overcome before online shopping really takes off globally. One key reason is that the Internet is still a relatively new channel for most users and many are still sceptical about its ability to deliver. At the same time, some e-commerce businesses need to give more thought to the way in which they present the online shopping experience to potential customers. In addition - and despite the image of online shopping as a truly 'global' experience - local government legislature and tax laws may also continue to impose limitations in some countries. Nonetheless, the research would seem to confirm that as penetration of Internet users continues to grow, the proportion of online shoppers will also increase significantly. It suggests that apart from some local or regional differences the Internet will soon be a key medium for the purchase of products and services in virtually all key markets." In addition, the study shows the emergence of three distinct levels of Internet penetration globally: High penetration - countries where more than 40% of the adult population are users, i.e. US, Australia, Hong Kong, Netherlands, Denmark and Norway. Medium penetration - where between 20% and 40% of the adult population are users, i.e. Great Britain, Germany, France, Japan, Korea, Malaysia, Czech Republic, Belgium, Singapore and Taiwan. Low penetration - where less than 20% of the adult population are users, i.e. Italy, Spain, India, Indonesia, Slovakia, Portugal, Philippines, Hungary, Thailand, Poland and Turkey. At the same time, some interesting local differences in Internet-related shopping behaviour also emerge from the research. In India for example, 83% of users have never shopped online and have no plans to do so, compared with only 36% in the US. The purchase of food and grocery products online is highest in Hong Kong (32% of users), leisure travel is highest in France (44%) and toiletries and cosmetics highest in Japan (12%). Ulf Andersen concludes, "A study of this depth and magnitude gives a clear and robust picture of major trends in a rapidly evolving global marketplace. However, it also offers important insights into local and regional market trends among Internet users which, in turn, will allow online marketers to plan highly-focused, international, online campaigns in the future." Copies of the report are available at http://worldwide.tnsofres.com/ger The Taylor Nelson Sofres Interactive Global e-Commerce Report was undertaken via telephone and face-to-face interviews with 31,627 people across 27 countries in the world between April and June 2000.