Recent Net Statistics at a Glance By Peter M. Abraham Global Economy – Focus on Germany The German Retailers' Association (HDE) has high hopes for the 2003 holiday shopping season — the organization is forecasting a 38 percent increase totaling of  €11 billion in online sales, and 2.1 percent of all retail sales. German market research firm GfK Group categorized most online shoppers to be male, and in the 30-39 year old age range, with buying habits that mimic American purchases — books, CDs, video, and clothing are among the most popular items. Ecommerce An industry report says that more than 80 percent of online retailers saw revenue increases of at least 10 percent this past holiday season, and 31 percent saw increases of at least 50 percent. The 2002 Online Holiday Mood Study found that an estimated 84 percent of shoppers said they were either somewhat satisfied or very satisfied with their online buying experience during the holidays. The study found that e-mail (78 percent), free shipping with conditions (62 percent) and search engine placement (37 percent) were the top three most successful marketing/promotion efforts for online merchants during the holidays. Retail Forward, a consulting and research firm, says the percentage of Internet users who shopped for gifts online continued to grow in the 2002 holiday season, hitting 88 percent. And perhaps more significantly, the proportion of those shoppers who became buyers grew as well — to 75 percent from 69 percent in 2001. Nearly four in ten (37 percent) online holiday gift purchasers bought books, followed closely by clothing (35 percent) and toys (30 percent), Retail Forward stated. The Shop.org and BizRate study found that certain online efforts were especially valuable near the end of the holiday season. Clearance sale pages (46 percent), product promotion (44 percent), and featured sale item pages (42 percent) were the most valuable strategies in driving business, merchants polled said. The increase from the $11 billion spent in 2001 could be partially attributed to the big discounts from e-tailers, along with free shipping incentives, and the research found that consumers slated 16 percent of their holiday budgets for online shopping, compared to 14 percent in 2001. Top Shopping Categories During the 2002 Holiday Season, Ranked by Spending, (11/2 - 12/27) Category Category Spending Online (Millions) Percent Growth 2001 vs 2002 1. Books, Music, Video/DVD 3,113 40.0% 2. Apparel/Clothing 2,680 20.3% 3. Travel 1,971 5.8% 4. Consumer electronics 1,960 72.4% 5. Toys/Video games 1,843 72.5% Source: Goldman Sachs, Harris Interactive, and Nielsen//NetRatings   Online Sales ($billion) Quarter 2001 2002 % Change Q1 $8.22 $10.08 23% Q2 $7.91 $10.45 32% Q3 $7.32 $10.02 37% Q4 $12.43 $17.44 40% Holiday* $6.43 $7.92 23% Full Year $35.87 $47.98 34% Source: BizRate. * Holiday period is measured from November 25-December 25, 2002. Holiday period is included in fourth quarter data.   Average Purchase Price Quarter 2001 2002 % Change Q1 $119 $127 6% Q2 $127 $126 -1% Q3 $161 $145 -10% Q4 $146 $137 -6% Holiday* $145 $131 -10% Full Year $137 $134 -2% Source: BizRate. * Holiday period is measured from November 25-December 25, 2002. Holiday period is included in fourth quarter data.  If you are looking to take advantage of how fast the Internet is growing to increase the revenues of your business, please call our business development department toll free at 1-888-887-6727 to discuss ways your company can be using the Internet to increase your bottom line.