NEWS

Books, Music, Video Top Holiday Online Shopping Lists

Print Version
E-Mail Article
Reprints

Major retailers have gotten better about tying the in-store experience to the Internet. The Gap, for example, has in-store Internet kiosks in some locations allowing shoppers to order out-of-stock items through the company's Web site.


Verio MPS Solutions
Verio managed server solutions deliver the power and flexibility of a dedicated server at a fraction of the price. Learn more about how Verio gives you increased control, scalability, uptime, and performance.

Hoping to avoid long lines at the register and searching for bargains, holiday e-shoppers turned to books, music, videos and DVDs as their top choices. Together, these items represented 17.8 percent of all holiday spending, accounting for nearly US$1.9 billion this season, according to a report issued by Goldman Sachs & Co., Harris Interactive (Nasdaq: HPOL) Latest News about Harris Interactive and Nielsen//NetRatings.

Apparel was a close second, with purchases representing 17.5 percent of holiday sales online, for a total of $1.8 billion in sales. Travel-related purchases, which typically comprises a quarter of the consumer online retail market during the year, accounted for just 14.7 percent of holiday spending at $1.54 billion.

Seasonal sales in other two categories -- consumer electronics, toys and video games -- accounted for 11.6 percent and 11.4 percent of the market, respectively, garnering $1.21 billion and $1.19 billion in sales.

Apparel, Consumer Electronics Sales Jump

The biggest jumps in holiday spending this season were in the apparel and consumer electronics categories, with gains of 10 and 47 percent, respectively, over last year, Lori Iventosch-James, director of e-commerce research for Harris Interactive, noted.

Sales of books, music and video/DVD products increased 23 percent since last year's holiday season, while toys jumped 57 percent since the same time period.

"These top five categories cover nearly two-thirds of all consumer spending online, and e-tailers with a focus on these product categories are poised to benefit," said Iventosch-James.

Andrew Bartels, vice president of technology and electronic commerce strategies for Giga Information Group told E-Commerce Times his estimations show the most notable increase has been in apparel sales.

Traditional catalog retailers, such as L.L. Bean, Land's End and J Crew have been "successful in figuring out ways to turn some limitations of the net to their advantage," said Bartels.

Bartels credited customizable sizing technologies, including the use of virtual models, for luring apparel shoppers online.

At the same time, major retailers have gotten better about tying the in-store experience to the Internet, Bartels added. He cited the Gap, which in some locations has in-store Internet kiosks allowing shoppers to order out-of-stock items through the company's Web site.

Bargain Shoppers Avoid Crowds

The main reason 39 percent of consumers turned to the Internet for holiday shopping was to avoid traffic at their local stores and having to wait in long lines, the study showed. Earlier in the season, only 26 percent said that avoiding crowds was their top reason for shopping online.

Finding better bargains online was the major motivator for 33 percent of those surveyed, while 21 percent cited a lack of sales tax as their spur for online purchasing.

Holiday Spending Strong

Online sales for the holidays look strong in general, Bartels said, citing third-quarter results by the U.S. Census Bureau that showed online sales rang up a total of $11 billion. The figure represents a 34.3 percent increase over last year.

According to census figures, the year-over-year increase is the largest since 2001's first quarter of 2001 gain of 42 percent.

The figures were a signal to online retailers that the holiday season would fare well, said Bartels, as the third-quarter numbers already compared favorably to 2001's fourth quarter $11.2 billion in holiday sales.

But how the holidays fall on the calendar this year may have as much to do with propelling consumers toward the online channel to shop.

"The short holiday season has put a lot of pressure on people in terms of time for shopping, and they're turning to the Internet as a means of buying things quickly," said Bartels.

Social Networking Toolbox:
Talkback: Join the Discussion.
Re: Books, Music, Video Top Holiday Online Shopping Lists
tcarr
Posted 2002-12-26
This is just the beginning! Go Internet Go!

Print Version E-Mail Article Reprints More by Lisa Gill   RSS

Don't miss a story -- sign up for our FREE e-mail newsletters and view the latest headlines at a glance.
Tech News Flash [ View Sample ]
E-Commerce Minute [ View Sample ]
ECT News Network Weekly Newsletter [ View Sample ]