April 10, 2013
Travel and Apps Categories Captured Most Online Dollars; Hong Kong has Strong Potential for Mobile Online Shopping
Hong Kong, 10 April 2013: Online shopping continues to grow as a significant activity in Hong Kong, with 66.4% of local respondents logging on to the internet to shop, up from 57.9% in 2011, according to the latest MasterCard Online Shopping Survey. The survey found that overall online shopping satisfaction levels among Hong Kong people increased from 59.8% in 2011 to 66.3% in 2012.
More Hongkongers shopped online in the previous three months (87.4% in 2012 vs. 79.4% in 2011), and planned to shop online in the next six months, rising to 82.0% in 2012 from 75.5% in 2011. Hong Kong respondents also purchased more items online, from 4.8 in 2011 to 5.4 in 2012. Respondents reported that the strongest driver for online shopping was convenience (70.2%). In addition, 66.6% of respondents regarded shopping as a pastime.
Regarding the most common spending categories online, apps stores top the list, followed by airlines, travel and hotels. The MasterCard survey also found that Hong Kong respondents have spent online dollars on personal education/ professional development and financial advice websites, which were newly included in the 2012 survey.
As for the most-visited websites in Hong Kong, coupon/ deal sites continued to top the list with 54% of respondents having visited them in the previous three months. Cinema/ movie theaters and restaurants/ food delivery services are the second and the third most-visited websites in Hong Kong.
In terms of online shopping behavior, 25-34 year olds are the most active online shoppers (76.4%) while older age groups (50-64 year olds) are least likely to shop online (40.5%). The survey also found that women are keener online shoppers than men (68.4% of women vs. 64.4% of men) and purchase more items online (6.2 items vs. 4.6 items for men) more frequently (4.2 times vs. 3.2 times for men).
When asked for suggestions on how to improve online shopping experiences, Hong Kong residents indicated their preference to have an easier way to confirm the completion of a transaction, in addition to security and pricing. Meanwhile, protection from unscrupulous websites was the lowest priority.
The MasterCard survey shows that Hong Kong has strong potential for mobile shopping considering the high penetration of internet-enabled phones and the momentum generated by mobile-online shoppers. Of the 95.3% Hong Kong respondents who have access to the internet on their mobile phones, 4 out of 10 have made a purchase online via phone, which increased from 24.6% in 2011 to 40.9% in 2012.
As with the feedback for online shopping, convenience (54.7%) was the major reason for mobile shopping. On the other hand, habit was a key barrier restricting local people from mobile shopping, with 64.7% of non-online-mobile-shoppers saying they preferred online shopping on their PCs and 30.5% preferring shopping on a tablet.
As for the most frequently bought items through mobile shopping, cinema tickets top the list, followed by clothing/ other fashion-related items and apps.
Kevin Goldmintz, Head of Hong Kong and Macau, MasterCard Worldwide, said, “Online shopping has become a key online activity among local consumers, which suggests that companies such as small and medium enterprises (SMEs) for example, should look at the online space for growing their business and expanding their customer base. With our secure, convenient and innovative payment methods, MasterCard is committed to developing a vibrant e-commerce environment for MasterCard cardholders and merchants.”
China leads the Asia/Pacific region overall as the market with the most propensity to conduct online shopping, with 92.8% accessing the internet for online shopping and with close to 100% having shopped online at least once in the previous three months. In Taiwan, respondents are less inclined to shop online (56.1%), which represented a drop from 64.2% in 2011.
Despite the high mobile internet access rate in China (95.4%), only 54.1% China respondents have shopped online using their mobile phones. The mobile internet penetration in Taiwan is 80.8%, with 28.2% respondents having made a purchase through their mobile phone.
The survey, which serves as a benchmark that measures consumers’ propensity to shop online, was conducted across 25 markets between November and December 2012. The report for the Asia/Pacific region included interviews with 7,011 respondents from 14 markets who were asked questions about their online shopping habits. The report for Hong Kong is based on 500 respondents who access the internet at least once a week. The data was weighted to the online population in each of those markets. Similar surveys were also carried out in Taiwan and China. The survey and its accompanying reports do not represent MasterCard’s financial performance.
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.