Online holiday sales for Asia Pacific are projected to increase 91 percent this year.
SINGAPORE - Internet retailers must prepare for early holiday shoppers this year, as worldwide online holiday
sales are forecast to reach US$19.5 billion in 2000, an 85 percent increase over last year's revenue, according
to Gartner Group, Inc. In 1999, Internet holiday sales totaled US$10.5 billion.
"Explosive Internet access growth over the last two years, particularly in regions beyond North America,
means that many Internet users are now familiar enough with the medium to make online purchases," said Lane
Leskela, Gartner's e-business principal analyst.
"We've witnessed strong demand for Western goods by the affluent in Asia and support by governments, retail
banks, card companies and national portals to 'Webify' their countries."
North America will continue to account for more than half of online holiday sales this year (see Table 1), but
the other regions are gaining market share.
Europe and Asia/Pacific are projected to grow 96 and 91 percent respectively, while Japan and the rest of the
world online holiday shopping sales this year will increase more than 180 percent of 200 percent over 1999 revenue.
Worldwide Internet retailing sales forecast estimate for fourth quarter 2000 (billions of U.S. dollars)
|Region||4Q '00 Revenue||4Q '00 Market Share (%)||4Q '99 Revenue||4Q '99 Market Share (%)||Growth (%)|
|Rest of the world
During the holiday season last year, many consumers were making their first purchase over the Internet. Many Internet
retailers were not prepared for
the large number of shoppers, so some Web sites had difficulties fulfilling orders in time for the holidays.
Gartner analysts said Internet users and Internet retailers both learned from lessons last year to better prepare
for this holiday season.
"In an effort to avoid stock outages and long delivery times, consumers are likely to shop earlier as they
shop more in 2000. Retailers have learned their lesson too. They have spent the year implementing real-time inventory
systems and are motivating consumers to shop earlier in an effort to deliver the best shopping experience possible,"
Gartner analysts will provide additional insight into the Internet retailing market during Gartner's
Symposium/ITxpo 2000, October 24-27, Brisbane, Australia.