March 01, 2012
Sydney, 1 March 2012: Older generations are continuing to strongly buy Australian, with those aged 50 to 64 years old making online purchases from retailers located onshore 71 per cent of the time, according to the latest MasterCard Worldwide Survey on Online Shopping Behaviour.
The new research finds that age now has a greater influence on internet shopping habits than ever before, showing a widening gap between the generations when it comes to buying online.
When asked why they prefer to shop online through local retailers, 40 per cent of shoppers said it is faster while 33 per cent cited convenience as the chief motivating factor. Almost a quarter (23 per cent) also believed buying locally was cheaper than shopping through overseas outlets.
MasterCard’s research found that 42 per cent of all online purchases made by 18-24 year old shoppers were through international retail sites.
However Australian’s aged 45-49 were the most prolific online shoppers, with 83 per cent accessing the internet for online shopping in the past three months. Baby boomers also proved to be the greatest online purchasers, with shoppers aged 50 to 64 years old buying almost five products online in the last three months alone.
MasterCard Australia Country Manager, Andrew Cartwright, said that the difference in behaviour between age groups is growing, and what is becoming clear is a strong underlying desire – especially among older shoppers – to support the local industry and buy Australian.
“While the rise of ecommerce can sometimes create disruptions and challenges for the local retail sector, it also presents lucrative opportunities for local outlets to harness a growing desire to buy Australian whilst online.”
“The Australian online retail market is developing quickly and changing constantly. We are seeing a renewed push by major department stores and iconic local brands to reinvigorate their online offerings and cater to the heightened demands of savvy online shoppers.”
“More and more, shoppers are rewarding local stores who invest in and update their online presence. Presenting an innovative and fun experience is becoming a vital tactic for those wishing to gain a loyal customer base,” he added.
A dramatic rise in online purchases by baby boomers and Gen X shoppers has not only put local retailers in the spotlight, but amplified the need for easy, fast and safe transactions regardless of the sales channel.
Mr. Cartwright said that the growth of online transactions from these demographic groups will lead to even greater diversity in online retailers.
Further insights revealed in the MasterCard Survey on Online Shopping Behaviour include:
- 76 per cent of baby boomer respondents have made an online purchase within the past three months - this compares to 78 per cent of those in the 18-24 age group
- 75 per cent of all money spent online by those aged 50 and over was processed by local merchants. Only 59 per cent of money spent by 18-24 year olds was processed locally
- Baby boomers are more concerned with security and customer service, with 95 per cent noting importance of a secure payment facility and 92 per cent stating good customer service was a deciding factor
- 90 per cent of those who have made a purchase online within the past three months claim to be satisfied with the shopping experience
- 53 per cent of respondents rate themselves as ‘very likely’ to make a purchase online within the next six months
MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @mastercardnews, join the conversation on The Heart of Commerce Blog and subscribe for the latest news.
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