E=MC² New Formula Restores Hope for B2C eCommerce

Datamonitor's IMPACT 2000 Survey Demonstrates Ever-Increasing Expenditure In The B2C Sector

Datamonitor -- 19 July 2000

Datamonitor, a leading market analysis firm, has created the first ever eCommerce formula, E=MC², where expenditure (E) is equal to minutes online (M) times confidence-squared (C²). This formula was developed based on the results of Datamonitor's extensive IMPACT 2000 survey released today. The survey reveals that with an increase in Internet experience, consumers gain confidence and subsequently spend more minutes and money online.

Despite the recent failure of some high profile eTailers, Datamonitor's IMPACT 2000 survey indicates that online shopping continues to thrive, particularly in the United States. Key findings include:

• The U.S., where some 78% of respondents described themselves as Internet experts¹, leads the world with a 63% Internet buy rate². Germany ranks second with a 49% buy rate, the UK is third at 48%, Sweden is fourth at 45%, while France (29%) and Spain (27%) round out the top six.
• Buy rates declined with level of experience. The buy rate for self-professed Internet experts was 57%, compared to the 26% buy rate for starters³.
• eCommerce consumers are extremely brand loyal -- across all consumer-product categories. In fact, more than 90% of shoppers said they intend to reorder from a site they had used previously.

"This formula proves that the B2C eTailing sector is anything but dead," said Geoff Doggart, global eCommerce program manager for Datamonitor's Technology Practice. "We know customers are brand loyal, so the next step will be for retailers to focus on confidence-building measures such as ease-of-use, fulfillment and service."

Other interesting findings uncovered include:

• The online population (i.e. 51% women and 49% men) is now aligned with the demographics of the overall populations
• Baby boomers lead the U.S. in online shopping with a 46% buy rate
• Media related items (CDs, music, videos, DVDs etc.) have the highest buy rate at 67%
• 18 -24 year old Americans have the highest online penetration rate
• Married/living with a partner have the highest buy rate at 61%

The IMPACT 2000 survey gives a detailed snapshot of today's online consumers in the US and Europe, as well as a preview of what's ahead in 2004. It investigates Internet use in a variety of vertical markets including technology, consumer markets and financial services. The US portion of the survey was based on a sample size of 5,007 adult respondents.

Specific reports for the US market include Consumer Trends in eBanking, Consumer Trends in eBrokerage, Consumer Trends in eInsurance, the US iConsumer, US eCommerce markets and the US eConsumer.

Datamonitor is a leading market analysis firm that focuses on the Financial Services, Consumer, Healthcare, Technology, Automotive and Energy industries. For more information about Datamonitor, please visit http://www.datamonitor.com/.

¹ Expert is defined as users who access the Internet more than once a day and have a year or more experience online.
² Buy Rate is the proportion of survey respondents that researched a product online and subsequently purchased the product.
³ Starter is defined as users who rarely use the Internet and have little experience online.

Source: Company Press Release Datamonitor  

Stay Informed		Recent Discussions
Subscribe to the About Retail Industry newsletter for the latest information.		Join these About Retail Industry forum conversations:
Your email: Send me the About Retail Industry newsletter. Also send About Industry and Business.		Demographics & Shopping Behavior Retail News Retail Real Estate Trends Considering RFID Tags? Site Selection Technology
What You Need to Know About		Frequently Asked Questions
Recent Retail Features and Articles Recent Retail Reports and Studies Today's Retail Industry News		How do I submit a link to your directory? Where do I find retail statistics? More frequently asked questions