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Online Shopping May Reach $11.9 Billion

Story:

Jupiter Media Metrix reported today that 2001 holiday online retail and travel sales will reach approximately $11.9 billion—an 11 percent increase over last year's $10.8 billion. Growth this season will be slower than last, Jupiter expects to see more people shopping online (46 million in 2001, up from 36 million in 2000) and consumers allocating a greater percentage of their holiday budget to online shopping.

Other highlights:

  • Online holiday budget allocation is increasing at the same time that spending per person is decreasing because the online population is less affluent this year and because holiday budgets are shrinking as a result of the weakened economic environment.
  • There will be more women shopping online than men this holiday season, accounting for 53 percent of the total online holiday buying population. It does not necessarily suggest any short-term shift in strategy because the factors that drive women to buy online are very similar to those that bring men to buy online.

Analysis:

Even though problems have been noted with the economy, it appears that consumers will still be making substantial purchases on the web.

They add a very useful postscript:

"Do not directly address fears of terrorism on the company Web site or in e-mail correspondence. The risk of offending customers by appearing to take advantage of their fears is simply too great. "

Link:

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