To: Bill Harmond who wrote (115430 ) 1/16/2001 7:10:02 PM From: Glenn D. Rudolph Respond to of 164684 Located at the link below is an excellent report regarding on-line retailing. It is in PDF format and is 154 pages. I synopsis I have included here: Online Retailing Now a Business Requirement Despite the fact that 2000 was a year of devastating defeat for many pure-play e-tailers and caution for the investment community, consumers in the U.S.—and around the world—continue to be very satisfied with the online retailing channel, according to Ernst & Young's new report, Global Online Retailing (Adobe Acrobat - 1.6M). While they are concerned with shipping costs and are price-sensitive generally, the 4,400 online buyers in 12 countries surveyed, including 1,400 in the U.S., continue to buy online in increasing numbers and are spending more on a broader range of merchandise categories. Ernst & Young's fourth annual special report shows four patterns clearly emerging in 2001: * A multi-channel strategy is a key to success today and a critical driver for the future. * The same consumer who buys in stores is now buying online. * What consumers want to buy online is the same as what they demand in stores, and they expect the same merchandise selection, product quality and brands, and shopping experience across channels. * Consumers will continue to push companies to make their online technology work the way the users want it to work – and it's more than just modem speed. With the emergence of the retailer you know and trust in your own backyard selling a full range of items across their stores, catalogs and Web sites, Ernst & Young predicts that the online channel will be substantial. By 2005, it will represent 10% to 12% of sales in such categories as apparel, accessories, health and beauty, and toys. In some categories, such as books, music, software, videos, and consumer electronics, it could represent as much as 25% of sales. For more on Ernst & Young's Global Online Retailing report, visit the Thought Center or the Retail & Consumer Products industry site. ey.com