Goldman, Sachs & Co., Nielsen//NetRatings and Harris Interactive will collaborate on their sixth annual Holiday eSpending Report, conducting weekly surveys throughout November and December 2006.
“The sixth annual eSpending survey will enable us to assess online consumer spending levels, drivers of preference and levels of satisfaction throughout the holiday season. While we expect this year's survey to confirm a continuation of strong secular growth for e-commerce industry sales, we also think the advent of a more sophisticated online buyer could drive greater fragmentation, more switching and less loyalty,” said Anthony Noto, Internet and entertainment analyst, Goldman Sachs.
What to expect in 2006
The three firms believe that online retail will continue its growth trajectory during the 2006 holiday season, as dollars continue to migrate from traditional brick and mortar stores to multi-channel and Web-only retailers. Among multi-channel retailers, the most successful will be those that leverage their physical stores to provide their customers with greater choice. For example, companies whose Web sites display in-store product availability and offer store pick-up will capitalize on the advantages of each channel.
Online-only retailers will also seek to capture holiday spending and will compete on a variety of fronts — including extensive selection, unique or exclusive products, price, and customer service.
“We're confident that we will see the majority of seasoned online shoppers return to the Internet this season to easily locate a broad array of products to complete their holiday purchases,” said Heather Dougherty, senior retail analyst, Nielsen//NetRatings. “Product-related content, such as consumer- created reviews and ratings will be prevalent on many retail sites, offering potential buyers additional information from their peers before they make a purchase.”
Highlights of the 2005 online holiday shopping season
“In 2005, our results showed consumer satisfaction reaching a peak with 64% of shoppers saying they were satisfied with the online shopping experience, and only six percent saying they were dissatisfied,” commented Karen Chiarelli, vice president of technology and telecommunications research at Harris Interactive. “To maintain these high levels of satisfaction, retail sites must continue to deliver on the perceived benefits of online shopping — including low prices (as compared to in-store) and offering a wide selection of products.”
Last year's survey projections revealed online holiday spending reached a record $30.1 billion in 2005, excluding travel, growing 30 percent over the previous year. Apparel/Clothing was the No. 1 product category among online holiday shoppers in 2005, drawing $5.3 billion in revenue and increasing 42 percent over the previous year. Computer hardware/peripherals and Consumer electronics ranked No. 2 and 3 among online shoppers, garnering $4.8 billion each and increasing 126 and 109% year-over-year, respectively.
