Financial Daily from THE HINDU group of publications
Saturday, Nov 26, 2005
Financial Daily from THE HINDU group of publications Saturday, Nov 26, 2005 |
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E-Commerce & E-Business Marketing - Online Marketing `Cybercafes propel online shopping' Our Bureau
New Delhi , Nov. 25 WITH a boom in e-commerce and increasing number of online shoppers, cybercafes seem to be playing an important role in enabling online shopping. A study conducted by the Internet & Mobile Association of India (IAMAI) shows that cybercafes have fast evolved into popular access points for e-commerce activity across the country, registering a 45 per cent year-on-year growth over the past five years. The current figure of 1.05 lakh cybercafes is expected to grow to 2.62 lakh by 2010. The sample of the survey consisted of 882 respondents who frequented cybercafes, of which 47 per cent shopped online. The survey analysed the data on the basis of various factors including the nature of products purchased online, time spent online and the future propensity of consumers to spend among others. Ms Preeti Desai, President, IAMAI, said, "The number of Internet users has grown at a whopping rate of 54 per cent. The current figure at 38.5 million would hit the 100-million mark by 2007-08. The cybercafé is instrumental in integrating Internet with the Indian social fabric, bringing the future of Internet technology to Indian citizens at a cost-effective and affordable price." Though it's a well-known fact that Net-savvy citizens are in the young age group, it's heartening to acknowledge that different generations are assisting each other in top cities as well as in tier-II cities and towns. Cybercafés being community access points coupled with e-commerce activities are key drivers in India's e-volution, Ms Desai added. The survey revealed that a majority of the shoppers purchased books, electronic gadgets, railway tickets and gifts online. With regard to making online payments, 80 per cent of the sample size found cash on delivery `very secure'. Major cities such as Mumbai (24 per cent), Delhi (14 per cent), Bangalore (9 per cent) and Chennai at 8 per cent lead the way, with shoppers from Cybercafés making online purchases. Non-metro consumers from townships such as Lucknow, Tiruchi, Jaipur and Vadodara at 2 per cent seem to be catching up. The predictions for the future look very bright with the e-commerce sector poised for 300 per cent growth from its current Rs 570 crore to around Rs 2,300 crore by 2006-2007.
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