• by Jack Loechner , Staff Writer @mp_research, November 11, 2001

Jupiter Media Metrix reports that 2001 holiday online retail and travel sales will reach approximately $11.9 billion—an 11 percent increase over last year. Jupiter analysts expect to see 46 million people shopping online consumers allocating a greater percentage of their holiday budget to online shopping. An October 2001 Jupiter Consumer Survey reveals that only 14% of those that plan to buy gifts online this season believe they will spend less than 10% of their budget online, compared with 18% in 2000 and 61% in 1999.

According to Jupiter analysts, online spending per person is decreasing because the online population is less affluent this year and because holiday budgets are shrinking as a result of the weakened economic environment.

- There will be more women shopping online than men this holiday season, accounting for 53% of the total online holiday buying population.

Products that consumers have already bought or plan to buy online this season include:
- books (40 percent),
- clothing and shoes (30 percent),
- toys (29 percent),
- videos (20 percent)
- music (28 percent).
- 24 percent of consumers said they would buy computers or computer accessories online

Recommendations to Retailers:
- Do not directly address fears of terrorism on the company Web site or in e-mail correspondence. The risk of offending customers by appearing to take advantage of their fears is simply too great.
- Allow gift buyers to notify recipients on the outside of the box from whom the package was sent.
- Multichannel retailers should promote Web sites prominently on TV, radio and print ads that are targeted at driving store traffic, giving wary shoppers an alternative to crowded malls and stores without losing a sale.

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