■ Survey Overview

Method: Global online research panel, multilingual questionnaire (respective local language options available)

Regions: Tokyo (Japan), Shanghai (China), Seoul (South Korea), Mumbai (India), Bangkok (Thailand), Jakarta (Indonesia), New York (US), London (UK)

Respondents: Men and women aged between the ages of 10 and 49 years old that have used online shopping (made a purchase) in the past six months

Samples: 320 x 8 cities = Total 2,560

Period: February 2 to 12, 2023

Research agency: Cross Marketing, Inc.

■ Key findings

1．More consumers recognize price hikes in countries with a higher inflation rate

● The survey asked respondents to rate their perception of the price increases among 15 product categories on a scale of 1–4, 1) I think they’ve risen very much; 2) I think they’ve risen to some extent; 3) I don't really think they’ve risen; and 4) I don't think they’ve risen at all. The results showed that more respondents in London, New York, Mumbai and Seoul felt that the prices had risen very much regardless of product category
● The above trend is consistent with statistical data. Respondents in London, New York, and Mumbai - three cities with higher inflation rates of 9.1%, 8.1%, and 6.9% respectively – perceive price increases in many product categories. In Seoul, with an inflation rate of 5.5%, many feel the impact of price increases, especially in food and daily necessities categories. In contrast, in Tokyo, Shanghai, and Jakarta, three cities with relatively modest inflation rates at 2.0%, 2.2%, and 4.6%, respectively, only 20% or less said they felt prices had risen very much for most product categories.
● By product category, respondents reported higher markups for fashion and home appliances in addition to food & beverages and daily necessities. Mobile phones were another category that many respondents in Seoul, Mumbai and other cities felt that the prices had risen significantly.

2．Domestic inflation drives cross-border e-commerce shopping

● When asked how their online shopping behavior has changed as inflation soars, respondents in all cities said they look for value for the money and make the most of coupons and sales promotions. Some also rethought their shopping habits, and started buying in bulk and shopped less frequentley.
● In addition, due to different inflation rates bewteen countries and currency fluctuations, cross-border e-commerce became a way to fight inflation. Regardless of product categories, 30% or more respondents in Mumbai and Bangkok said they had started using foreign online shopping sites where they could buy things cheaper than in their country.
● Even in Shanghai and Jakarta, which have relatively lower inflation rates, many consumers changed their shopping habits and started to plan before making a purchase, showing the same trend as other cities. Compared to other cities, fewer consumers in Tokyo changed their shopping behavior.

About transcosmos inc.

transcosmos launched its operations in 1966. Since then, we have combined superior “people” with up-to-date “technology” to enhance the competitive strength of our clients by providing them with superior and valuable services. transcosmos currently offers services that support clients’ business processes focusing on both sales expansion and cost optimization through our 172 bases across 28 countries/regions with a focus on Asia, while continuously pursuing Operational Excellence. Furthermore, following the expansion of e-commerce market on the global scale, transcosmos provides a comprehensive One-Stop Global E-Commerce Services to deliver our clients' excellent products and services to consumers in 46 countries/regions around the globe. transcosmos aims to be the “Global Digital Transformation Partner” of our clients, supporting the clients’ transformation by leveraging digital technology, responding to the ever-changing business environment.