Forrester Research US eCommerce Forecast: Online Retail Sales
To Reach $329 Billion By 2010
Cambridge, Mass., September 19, 2005 . . . The second decade of
eCommerce will be marked by innovations that will make online
shopping easier and more engaging. This will boost US online retail
sales from $172 billion in 2005 to $329 billion in 2010, according
to a new forecast by Forrester Research, Inc. (Nasdaq: FORR). The
increase translates to a solid 14 percent compound annual growth
rate over the next five years.
Relying on new online shoppers to drive sales brings only limited
opportunity; more and more mainstream consumers have already
migrated to the Web. Instead, retailers are investing newfound
profits in emerging technologies, such as sophisticated analytics
and personalization tools, that enhance the online experience for
existing consumers. The result: Businesses no longer view the Web
as a
low-
cost sales channel but as a way
of improving customer service and retention.
Laptop Battery "Businesses are debating their online strategy. Many believe
that they became too focused on sales. Now they're looking at their
Web
sites as a way to drive in-store
traffic and increase their engagement with customers," says
Forrester Research Vice President Carrie A. Johnson. "This is a
huge shift in philosophy as eCommerce enters a more
sophisticated phase. But it's also creating tension as CEOs
demand ROI for expensive Web sites with hard-to-define metrics
such as loyalty and brand."
Amsterdam, November 10, 2004 . . . According to Forrester Research, Europe will outpace the US in online holiday sales this year. It estimates that eCommerce during the holiday season in Western Europe will increase by 44% over last year, bringing in 13 billion compared with 10 billion ($13 billion) in the US. According to Forrester, this growth will be driven by more affluent online shoppers, an eCommerce push by traditional retailers, and the aggressive promotion of online stores.
Thinkpad Companies that illustrate this new philosophy include Target,
which is using its Web site to promote and brand its retail stores;
Gap, which is launching redesigned Web sites that ease the
check-out process; and Nike and Timberland, two manufacturers that
are exposing online shoppers to the idea of product customization.
All are being forced to become more innovative online because pure
plays such as Amazon.com, drugstore.com, Blue Nile, and Newegg.com
have raised the customer experience bar.
Forrester Research is THE place to look for research on the Web. + US online retail sales, $172.4 billion + Predicted US online retail sales, $328.6 billion + 55 million + 88%.
Microsoft The Forrester report includes a five-year forecast (with
graphic) that breaks out online sales across 15 retail categories,
including travel. Some highlights:
According to Ferris Research, based IT analysts firm, mail security market is expected to grow by 25 percent a year through 2007, eventually reaching $5.5 billion in the U.S. alone by the year 2010. The IBM Network eMail Security Express offering is a powerful entry in this market. sized enterprises, education and service provider clients. IBM and its Business Partners can now sell the total NES solution, making it easier for clients to purchase the hardware, software and services together from one provider, with one purchase order.
Laptop Computers * eCommerce will represent 13 percent of total US retail sales
in 2010.
* Travel remains the largest online retail category, growing from
$63 billion in 2005 to $119 billion in 2010.
* General merchandise (all retail categories excluding auto, food
and beverage, and travel) will top $100 billion for the first time
in 2005.
* An increase in the number of women shoppers will contribute to
14 percent of jewelry sales moving online by
2010. Online sales of health and beauty products will grow at an
annual rate of 22 percent.
* Twenty-nine percent of small appliance sales will migrate online
by the end of the decade as a generation that grew up with Internet
access begins to get married and attend weddings.
* Categories showing significant growth (growth above the overall
14 percent compound annual rate) include: apparel, consumer
electronics, health and beauty, home products, food and beverage,
and sporting goods.
- Online retail sales will grow from $81 billion in 2005 to $144 billion in 2010. The Internet will influence nearly half of all retail sales in 2010 (compared to 27 percent in 2005). By 2010, 71 percent of online users will use the Internet to shop compared to 65 percent in 2005. In the words of Dan Muse of eCommerceGuide.com, “Seize the opportunity and integrate your offerings now.”
Laptop Computer The $329 billion represents a minor downward adjustment from
Forrester's 2004 forecast of $331 billion for 2010. This is due to
recent softness in overall consumer spending.
laptop computers is driving strong sales for notebook computers, according to the latest quarterly sales figures from the research firm IDC, which reported a 37% computer sales for the second quarter, compared with a year earlier. In the U.S., laptop sales grew 17.7%, while sales of desktop computers and servers fell 4%. The New York Times ( 10), CNET ( 10)
Desktop Computer "US eCommerce: 2005 To 2010" is available to WholeView 2 clients
and can be found at www.forrester.com.
Notebooks Forrester Research (Nasdaq: FORR) is an independent technology
and
market research company that
provides pragmatic and forward-thinking advice about
technology's impact on business and consumers. For 22 years,
Forrester has been a thought leader and trusted advisor, helping
global clients lead in their markets through its research,
consulting, events, and peer-to-peer executive programs. For
more information, visit www.forrester.com.
[ Comment, Edit or Article Submission ]
