Online shopping in the Asia Pacific are expected to grow annually at 23.3% to reach US$168.76 billion by 2011, led by the new markets of China and India, based on a study by MasterCard. Currently 63% of the region’s survey respondents shopped on the internet, with an especially high percentage from South Korea (83%) and Japan (83%).

Japan is currently the largest market in the region with 62% of online sales. It is expected to lose its dominance as the two large emerging markets of China and India develop. Although internet penetration in both countries is low at 15.9% and 5.3% respectively, their huge populations translate this into a potential commercial opportunity waiting to be tapped.

China offers the largest market in Asia Pacific in terms of online shopping revenue turnover. As of 2007, revenue turnover in China’s online shopping market was estimated at $297.8 billion which contributed to 44.9% of total online shopping revenue turnover in the region.

China’s online shopping penetration rate was unusually high at 70%, “indicating that the online population has a high tendency to make online purchases,” cited the survey.

By 2010, China’s online population is projected to hit 480 million and comprising almost 58% of the region’s internet shoppers from the current 49.9%.

Their survey of 4000 respondents in the Asia Pacific found that Singapore and South Korea are the top online spenders in the region, spending US$770.70 and $707.50 respectively over a 3-month period. 76% of total respondents intend to make a purchase in the next 6 months. Secure payment facilities, price and convenient payment methods were cited as the most important factors in making an online purchase.