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Category: Technology Author : Duncan Riley Posted: October 24, 2008
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The economy will slow US online holiday sales, really?


We do not need a study to conclude that economy would slow US online holiday sales, but here’s one from Forrester Research. Sales would reach $44 billion, representing a 12 percent increase over the last year but that would be the slowest growth to date. The reason? Your guess is as good as mine– the economy.

Although US consumers are pessimistic about the economy, they remain interested with the web as venue for them to save money. Forty-eight percent of consumers surveyed, compared with 41 percent in 2007, said that they can find the best values and deals online. Additionally, 36 percent of consumers said that they would be more likely to shop online due to high gas prices, compared with 22 percent who expressed the same sentiment last year.

Forrester expects that the majority of holiday online sales will be driven by shoppers who have previously purchased online, rather than first time online buyers.

More than two-thirds of consumers surveyed said that they are planning to spend more or about the same online as they did last year. Core holiday product categories such as clothing will remain top choices for online buyers, as well as books, DVDs/videos, music, gift certificates, and toys.

Respondents also indicated that they will be seeking free shipping offers more often this year than last.










Comments


4 Archived Responses to “ The economy will slow US online holiday sales, really? ”

  1. paydayloanadvocate
    Oct 27, 2008

    America’s collective brow is furrowed over the current economic crisis that careless mortgage lending has brought on. But did you know that Americans are not the only people who are impacted on a daily basis by plummeting dollars and good sense? The International Herald Tribune shows us that the worldwide credit crunch is very real in Europe, too. Small businesses like Dominique Boudier’s printing company, outside of Paris, depend upon credit with its suppliers in order to function, and her creditors are cutting back their offerings by half. This is by mandate of the suppliers’ credit insurance companies. Considering a typical 60-day lag time in which clients pay, Boudier’s business needs added cash flow to make up for this major shortfall. As her own bank’s hands are tied, she fears the worst. Her bank, like many others across Europe, began to put their money to sleep with the European Central Bank instead of investing it back into other banks and the economy as a whole. When banks began to fail and liquidity was disrupted, credit began to dry up. Much like America’s Federal Reserve Bank, the European Central Bank uses a mechanism based on the ability to create as much fiat money as required. Fiat-money currency, which is effectively credit money, loses value once government refuses to further guarantee its value. During this world credit crunch, we see this in high inflation rates. Many believe stronger private banking systems that make responsible decisions can solve this problem. Until that happens, payday advance loans will inevitably be easier to come by for consumers who need immediate short-term help and cannot wait on a faltering central banking system.

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  2. Bali Villas
    Nov 12, 2008

    I hope these conditions will better soon. Here in Bali, online holiday sales are drop too. :(

  3. bali villas
    Dec 5, 2008

    hopeful obama can resolve the net US Economy …

  4. villas in Bali
    Mar 26, 2009

    Yes the economic reason in US also have a big impact to us also, but I believe will boucing back in a couple months.
    Thanks you Kery