Mall or mouse?

About the Survey

Online Shopping: A Canadian Perspective

The views on online shopping were taken from a survey of 17,500 consumers in 29 countries in December 2009, part of The Nielsen Companys Global Omnibus Survey.

Canadians embrace online shopping but trail global average For consumers, the evolution from bricks to clicks has been extraordinary. When The Nielsen Company conducted its first survey into online shopping habits in 2006, only 10% of the worlds online population had made a purchase over the Internet. Today, according to the latest Nielsen global survey of online consumer purchase behaviour, 86% of respondents have let their fingers do the shopping. Canadians have embraced online shopping as well, but to a somewhat lesser degree. 76% of Canadas Internet users have shopped online, well below the global average, and near the bottom of the pack (23 out of 29) of the countries surveyed. The worlds most enthusiastic online consumers come from South Korea, where 98% of Internet users have shopped online, followed closely by Japan, Germany, and Great Britain (97% each). In the U.S., the number is 94%, also well ahead of neighbouring Canada. Among the countries surveyed by Nielsen, the slowest to adopt is the Philippines, where only 58% of Internet users have shopped online, followed by the United Arab Emirates (60%) and Indonesia (63%).

Canadian consumers also shop online less frequently than those in other countries. When asked the last time they made a purchase over the Internet, heres what people said: Last Online Purchase Canada Less than 1 month ago 1-3 months ago 4-6 months ago More than 6 months ago 40% 24% 13% 22% U.S. 70% 15% 7% 8% Global 63% 18% 8% 11%

purchase, with 16% of Canadas online shoppers booking airline tickets, and 11% arranging hotel reservations. Internet purchases in last three months Canada Canada Books Videos/DVDs/games (not downloaded) Clothing/shoes Electronic equipment (TV, camera, etc.) Airline ticket/reservations Computer hardware Event tickets Cosmetics/nutrition Hotel reservations 23% 20% 19% 16% 16% 14% 14% 11% 11%

Books, entertainment top online purchases Internet consumers are also well-read; in Canada (23%) and worldwide (46%), books topped the list of most popular purchases for anyone who had shopped online in the previous three months. Canadians are shopping online for other forms of entertainment, with videos, DVDs and games coming in as the second most common purchase (20%). Beyond goods, travel is another popular Internet

Shoppers have online habits When it comes to online shopping, consumers tend to be creatures of habit. Just over half of Canadas Internet shoppers (54%) buy from the same site regularly. And just over one-quarter (26%) buy from the same physical store where they also shop. A significant number of Canadas online

Survey conducted December, 2009. Copyright 2010 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks of The Nielsen Company.

shoppers also engage in the equivalent of browsing; 24% use a search engine to decide where to shop, and 27% find their shopping destination through general surfing. What else helps people decide where to shop online? Advertising, whether online, on TV or in print seems to have a limited impact on Canadas online consumers. Reviews (in the media and from other consumers) have more influence than ads, but personal recommendations and special offers are even more effective at driving people to make an online purchase. Online shopping influencers Same site I buy from regularly Same store I buy from offline Search engine General surfing Special offer I saw Personal recommendation Review from other consumers Online recommendation Other Review from media/editorial Shopping comparison website Online advertising TV/print or other advertising Canada 53% 26% 26% 25% 24% 21% 16% 12% 11% 11% 10% 7% 7%

Credit cards are payment method of choice In Canada, credit cards are by far the most common payment method of payment for online purchases 75% percent of Canadian online consumers used their credit card for a recent online purchase, while over four in 10 (45%) chose PayPal. Globally, credit cards are also the top payment method, though several others are also used routinely. Payment Method Credit Card PayPal Debit Card Cash on delivery (COD) Pre-Paid Card Money Transfer Other Bank transfer Cash paid in person by the buyer Cash in the mail Payment through a convenience store Credit stored on mobile phone Postal transfer Canada 81% 42% 4% 3% 3% 2% 2% 1% 1% 1% 0 0 -Global 56% 23% 23% 18% 3% 6% 4% 19% 3% 2% 4% 2% 3%

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Survey conducted December, 2009. Copyright 2010 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks of The Nielsen Company.