We interrupt this year's b2b show with a brief b2c announcement (after all, the b2c will need the right servers & software & so on)
NEW YORK (CNNfn) - Consumers will be roasting a lot more chestnuts on the cyber-fire this year, according to a study released Tuesday that predicts online holiday sales will reach $12 billion to $15 billion.
Ernst & Young LLP released its Christmas forecast Tuesday during a news conference in New York.
The survey of about 1,200 Internet shoppers found that the number of regular online holiday shoppers will almost triple from last year. In 1998, 23 percent of the respondents did at least 10 percent of their holiday shopping online, while the survey said that figure will reach 67 percent this year.
The study also revealed that customers will do more of their holiday shopping online.
While only 4 percent of online shoppers did at least 50 percent of their holiday shopping online in 1998, this year 19 percent will do at least half their shopping on the Net. The number of online consumers who do not plan to Web shop during the holidays dropped like the temperature in the North Pole, falling from 49 percent to 11 percent.
'These are very substantial numbers'
Stephanie Shern, Ernst & Young's global vice chairman, retail and consumer products, said the numbers inspired the company to make some bullish predictions about 1999 shopping figures.
"We are projecting online sales for the holiday of $12-15 billion," she said. "Our estimate of total revenue for calendar year 1999 is $25-30 billion. These are very substantial numbers."
The survey also said 59 percent of this year's online shops will be women, 58 percent are married and between the ages of 30 and 49, come from the middle income bracket, earning $30,000 to $69,000 per year.
Buyers with children outnumber childless buyers, 61 percent compared to 53 percent.
The top categories for online buyers has not changed from last year, the survey showed, with the leading favorites being computers and related products, books, CD's, toys and videos. The favorite sites were Amazon.com (AMZN), Barnesandnoble.com (BNBN), Cdnow (CDNW), BUY.COM and eToys (ETYS).
The survey said consumers preferred the Internet because it saves time, spares them mall crowds and offers more convenient shopping hours. Net turnoffs included the high cost of shipping, high prices and the need to try things on to see if they fit.
Shern said the winners this holiday season will be those retailers that can integrate their bricks and mortar facilities with an Internet presence and do it well.
"Online service must be exceptional at all levels," Shern said, "from product selection and merchandising, to fast responsiveness to customer inquiries, to fulfillment and on-time delivery." |
