April 26, 2012
Cairo, Egypt, 26 April 2012: Online shopping is becoming increasingly popular in Egypt, according to the results of a recent MasterCard survey. Results of MasterCard’s survey on online shopping behavior revealed that 31% of respondents in Egypt access the internet for online shopping, and that online shopping is led by consumers within the age group of 18-24 years. The survey also found that shopping via mobile phones is increasing, with 30% of consumers surveyed planning to do so in the coming months.
The survey found the greatest proportion of online spend is on hotel bookings, with 65% of respondents in Egypt preferring to make hotel bookings online rather than at traditional outlets. Other leading categories are apps (63%), online products/services for gaming/virtual world (52%) and airlines (44%). It is worth noting that while hotel bookings lead in terms of the share of online spend versus offline spend, airlines lead in terms of absolute value of online purchases.
On average, 51% of respondents who visit retailer websites when online shopping indicated that they visit luxury or high-end goods sites. The survey found that the most popular online purchasing website for respondents in Egypt was Souq (14%), followed by Amazon (7%), and cashU (6%).
Raghu Malhotra, division president, Middle East & North Africa, MasterCard Worldwide said: “It is encouraging to see the positive trends in online and mobile shopping in Egypt. Consumers in Egypt are very aware of the possibilities the internet offers, and it is no surprise that it is increasingly being utilized for consumers’ needs, be it for purchasing everyday items or planning travels. Shopping via mobile phones is expected to increase by 30% in the coming months, as merchants make it increasingly simple and convenient to purchase items through mobile phones.”
In terms of attitudes towards online shopping, 66% of consumers who shop online said that they tend to go to the same sites when they have used them before. Additionally, 60% of the respondents stated that it is easier to shop online than offline, 57% felt that online shopping gave them access to a greater selection and 53% indicated that shopping is a fun way to pass time online. However, 43% of consumers in Egypt still do not feel secure shopping online.
Amongst the top factors impacting online shopping, respondents chose price/value of the items (83%), reputation of the website (82%), convenient payment methods (80%), promotional offers (79%) and secure payment facility offered by site (78%).
In addition, 69% of consumers plan in advance about products or services they will shop for before going online. Consumers’ research is mostly done through general internet browsing (60%), exploring merchant websites (52%) and looking for online product reviews (50%).
- Cross-border Shopping: The survey found that respondents spend 42% of their time on foreign retailers’ websites. The main categories for which respondents were willing to shop from overseas merchants were computer software (17%), supermarket/superstores (15%) and retailers for clothing & accessories (14%). In contrast, the main barriers to cross-border shopping include concerns about hidden charges (47%) and being part of scams (44%).
- Mobile Shopping: In terms of mobile shopping trends, the survey indicates strong potential for growth in Egypt, as only 9% of individuals surveyed made purchases through their mobile phones in recent months. Apps (34%), music downloads (20%) and supermarket/superstores (18%) were the top three categories purchased by consumers in Egypt through their mobile phones. Among those who did not purchase through their mobile phone recently, an additional 30% of respondents are likely to do so in the coming months.
- Ethical Spending: The MasterCard survey also explored the reasons and channels for “responsible” purchasing. It found that more than 50% of individuals purchased items in the last 2-3 years because of one or more ethical reasons, like environmentally friendly items or if a percentage of the sale is donated to a good cause. Approximately 32% of individuals who purchased items because of ethical reasons did so online.
The survey was conducted from 05 December 2011 to 06 January 2012 and reached 12,500 consumers from 25 markets across APMEA. The survey and its accompanying reports do not represent MasterCard financial performance.
NOTE TO EDITORS: More information and previously released MasterCard survey results can be found at www.masterintelligence.com.
 The markets surveyed include Australia, China, Hong Kong, Japan, U.A.E., Korea, India, Singapore, Thailand, South Africa, Malaysia, New Zealand, Taiwan, Philippines, Indonesia, Qatar, Vietnam, KSA, Egypt, Morocco, Oman, Kuwait, Lebanon, Nigeria and Kenya.
The MasterCard Index on Online Shopping targeted 500 respondents, aged 18-64 years old, per market. All respondents were part of the banked population, access the internet at least once a week and are representative in terms of age and gender of the online population in that market.
The survey was conducted online between 5 December 2011 and 6 January 2012 in 25 countries, including: Australia, China, Hong Kong, Japan, U.A.E., Korea, India, Singapore, Thailand, South Africa, Malaysia, New Zealand, Taiwan, Philippines, Indonesia, Qatar, Vietnam, KSA, Egypt, Morocco, Oman, Kuwait, Lebanon, Nigeria and Kenya.
Please note that there is no 2010 data available for Vietnam, KSA, Egypt, Morocco, Oman, Kuwait, Lebanon, Nigeria and Kenya, as they were not part of the 2010 study. Please also note that there is no 2009 data available for Indonesia and Qatar, as they were not part of the 2009 study.
The 2011 report included new sections - Shopping Through the Smart Phone; Cross-border Shopping and Ethical Spending.
The MasterCard Worldwide Index suite in Asia/Pacific, Middle East and Africa includes the long-running MasterCard Worldwide Index of Consumer Confidence, as well as the MasterCard Worldwide Index of Women’s Advancement, Online Shopping, Index of Financial Literacy, and the Index of Global Destination Cities. In addition to the Indices, MasterCard’s research properties also include a range of consumer surveys including Ethical Spending and a series on Consumer Purchasing Priorities (covering Travel, Dining & Entertainment, Education, Money Management, Luxury and General Shopping).
MasterCard also regularly releases Insights reports providing analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 80 Insights reports have been produced since 2004.
MasterCard has also released a series of four books on Asian consumer insights, authored by Dr. Yuwa Hedrick-Wong, Global Economic Advisor for MasterCard Worldwide and published by John Wiley & Sons.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate 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 discussion on the Cashless Conversations Blog and subscribe for the latest news.