In some rather shocking research that was recently released by JupiterResearch last month (Jan, 07), showed what a large role the retail web will play in influencing offline sales. This ever emerging sales channel is and will continue to be the major force to be reckoned with.
This report stated that the Internet will influence 47% total retail sales in 2011, compared to just 28% in 2005. This projection combines total sales transacted online with those carried out off line but directly influenced by online research. These offline sales will grow at a faster rate than online sales over the next five years.
The real conclusion that needs to be drawn from this is that retailers must embrace and become multichannel and to do so they must integrate their offerings so as to have clear, simple and convenient links to offline channels. Driving this growth are the 85% of online shoppers who said they used the Internet to research their offline purchases in 2005.
Also rather counter to the the market "noise" that continues to hype the continued growth rate of online sales, this report concluded that U.S. online sales are expected to plateau at 10 percent to 15 percent of the total amount of dollars consumers spend with retailers.
The impact of online behavior on offline sales will grow at a compound annual growth rate (CAGR) of 12% over the next five or so years. This should lead retailers to realize that the retailer centric web holds a tremendous advertising and marketing value in helping to persuade shoppers to head to brick-and-mortar location.
No comments:
Post a Comment