What are the top 3 categories in Consumers’ eBasket?
eCommerce is no longer “to do or not to do.” Today, it’s all about doing it successfully. However, if you want to be successful in e-commerce, you have to understand your consumers’ online shopping behaviour.
Online purchase intentions around the world have doubled since 2011 for many durable and entertainment-related categories including e-books, event tickets, sporting goods and toys, according to a new study conducted online by Nielsen. Nearly half of global respondents intend to make an online purchase in the next six months in highly prominent categories like clothing (46%), airline (48%) and hotel (44%) reservations. Online consumers in Taiwain, however, have higher shopping intentions than the global average.
The hot categories in Taiwanese consumers’ eBasket
The top five online purchasing categories for Taiwan consumers are clothing/accessories/shoes (45%), tours/hotel reservations (42%), airline ticket/reservations (38%), event tickets (movie, performance/exhibition/game, etc., 36%) and groceries (food and beverages, 32%).
The lightning-fast pace of change in the digital landscape has ushered in a consumer mindset that is both adventurous and exploratory when it comes to online shopping. Consumers everywhere want a good product at a good price, and the seemingly limitless options available in a virtual environment provide new opportunities for both merchants and consumers. The market for fast-moving consumer goods (FMCG) is no exception, especially when the FMCG growth rate in Taiwan on physical channels is only 0.4 percent.
When it comes to shopping for airline tickets or making reservations for tours and hotels, and looking for clothes, there is mostly a one-to-one correlation between online searching and shopping—those who browse online also buy online, with less than 10 percent gap for each category. In contrast, products more conducive to online browsing than buying include: mobile phones, electronic equipment, computer hardware/software, and cars/motorcycles. The browse-to-buy difference for these products is over 20 percentage points.
Global Consumers: Online Buying or Browsing?
When it comes to shopping for clothes, event tickets, books and toys, or making reservations for tours and hotels, there is mostly a one-to-one correlation between online searching and shopping—those who browse online also buy online.
Consumable products, on the other hand, have lower online browse/buy intention rates than non-consumable products, but their browse-to-buy correlation rates are just as strong. For example, with cosmetics, 33 percent of global respondents say they browse, and 31 percent say they buy: nearly a one-to-one correlation. Similarly, about one-third of global respondents say they browse and buy personal care products (31%/29%) and groceries (30%/27%). About one-fourth browse and buy pet products (24%/21%) and baby supplies (23%/20%), and roughly one-fifth browse/buy flowers (20%/18%) and alcoholic drinks (20%/17%).
Strong online browse-to-buy conversion rates for fast-moving consumer goods translates to loyal repeat customers for these categories. While these categories are still in the early stages of online adoption, these correlation rates signal great news for online retailers.
Products more conducive to online browsing than buying include: electronic equipment, mobile phones, computer hardware/software, sporting goods, videos/DVDs/games and cars/motorcycles. These products can carry a high price tag and often require a try-before-you-buy test run. The browse-to-buy difference for these products averages about 7 percentage points.
To learn more about Taiwan and global consumers’ online shopping behaviour, please click the “request report download” button in the right column.