Studies: Everything's E-OK

Share this article:
While venture capital financiers seem to be shying away from e-commerce investments, consumers aren't. Dollars drawn from Internet retail sites will continue to grow, further cementing the Internet into our economy, according to a pair of recent studies.


The first study, conducted by the Gartner Group, Stamford, CT, estimated that Internet retailing will top $29.3 billion this year, up from $16.8 billion last year. Online retail currently makes up 1 percent of overall consumer spending, but by 2004 this number will most likely grow to 5 percent to 7 percent, according to the Gartner Group's North American Internet retailing survey.


Through 2004, the study projected that the computer/hardware/software/consumer electronics segment will lead the online retailing pack. This segment is expected to grow to $59.7 billion in 2004 from $7.5 billion in 1999.


Banking and financial services are expected to almost quadruple to $12.3 billion in 2004, from $3.6 billion in 1999. Online sales of entertainment and home consumables are also expected to soar through 2004.


In a related study, BizRate.com examined online retail on a quarterly basis. It found that first quarter 2000 e-commerce sales grew 12 percent to $8.15 billion from previous quarter sales of $7.25 billion. Second quarter sales were expected to grow an additional 25 percent, to $10.2 billion.


The entertainment and holiday categories have seen the most dramatic changes on a quarter-by-quarter basis, according to BizRate, Los Angeles. Entertainment sites saw an increase of 35 percent from fourth quarter 1999 to first quarter 2000. Computer goods grew 30 percent, and gifts and flowers grew 14 percent.


On the downside, toys and hobbies decreased 72 percent, and food and wine shrank 60 percent.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Opinions

App of the Week: ABUKAI Expenses

App of the Week: ABUKAI Expenses

ABUKAI Expenses eliminates the hassle of creating expense reports.

App of the Week: Adobe Voice

App of the Week: Adobe Voice

Adobe Voice aims to help create professional animated videos.

When Marketing and Sales Collide: Answers

When Marketing and Sales Collide: Answers

The head of marketing operations is doing just as much selling as marketing, sans the commission her sales colleagues earn. How should she handle it? See how our readers would ...