Wednesday, October 25, 2006
Another massive year predicted for eCommerce
The latest Forrester report on on-line shopping indicates no sign of this market reaching maturity. The US is predicted to grow by over 20% this year vs toal retail growth of 3%.
In Europe this growth will be even faster.
Forrester say: "In the coming five years, the number of Europeans shopping online will grow from 100 million to 174 million. Their average yearly Net retail spending will grow from around €1,000 to €1,500, as UK Net consumers outspend even their US counterparts online. Overall, this will cause European eCommerce to surge to €263 billion in 2011, with travel, clothes, groceries, and consumer electronics all above the €10 billion per year mark."
The Sunday Times ran a cover article this past weekend which featured 2 companies in our portfolio. LoveFilm group has helped to create a new category of on-line spend in Europe in the DVD rental space and Lysander Meath-Baker of Digivate had some intelligent things to say about ways in which on-line shops will need to evolve to keep customers interested. He points to the use of video and virtual reality in eCommerce as some of the emerging techniques.