Daily Research News Online no. 1712 - Global e-Commerce Report from TNS

Global e-Commerce Report from TNS

July 1 2002

Following on from yesterday's report on e-commerce in the UK, on a global basis the proportion of Internet users buying products and services online has failed to grow in the last 12 months, according to the new Global e-commerce Report from Taylor Nelson Sofres (TNS).

This latest research shows that, while usage has grown slightly (up from 31 percent in 2001 to 34 percent in 2002), the proportion of users making a purchase in the last four weeks remains at only 15 percent - the same as in 2001.

TNS suggests that the industry's failure to allay fears about online payment security is a major factor preventing growth. Almost one third (30 percent) of users who have not shopped online said they were reluctant to give their credit card details and over a quarter (28 cent) felt that it was more secure buying goods and services in a store.

Arno Hummerston, head of TNS Interactive Solutions Worldwide said, 'Users' concerns about security are nothing new, yet the industry seems to have done little to address them. For the past three years the TNS Global e-commerce Report - in line with most e-commerce research - has highlighted security issues as the main reason for people choosing not to purchase online. '

Hummerston continued, 'Although some of these concerns are probably driven by a reluctance to shop across borders and a mistrust of new dot com brands, in the current global economic climate it is particularly important for the e-commerce industry to put users' minds at ease. Offline brand alignment is a clear advantage in achieving this, but quality standards and payment systems supplied by traditional, well-known financial institutions could go someway to stimulate new online shopper growth.'

There are, however, some positive signs. Asia Pacific has seen an overall rise in online shopping, mainly led by a boom in South Korea where 31 percent of Internet users have shopped online. Books and CDs are still the most popular items bought online, but there has been a small rise (two percent) in purchases of higher value items, namely electronic/electrical goods and holidays/travel.

Other key findings include:

Some 18 percent of all Internet users worldwide say that they plan to shop online in the next six months.
Almost a quarter (24 percent) of the adult population has used the Internet at home, compared with 13 percent at work.
Some 16 percent of men using the Internet have shopped online compared with 13 percent of women.

The Global e-commerce Report 2002 is carried out by Taylor Nelson Sofres Interactive and is based on more than 42,000 interviews in 37 countries. Copies of the third Global e-commerce Report are available at www.tnsofres.com/GeR2002

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.