As brick and mortar retailers continue to bemoan the lukewarm sales results of the 2002 holiday season, their online counterparts are basking in somewhat unexpected double-digit increases. Consumers
spent nearly $13.7 billion on Holidays 2002, according to the eSpending Report from The Goldman Sachs Group, Inc., Harris Interactive, and Nielsen//NetRatings. Online spending jumped more than 24%
year-over-year, up from $11 billion spent in 2001. Including travel, online spending grew nearly 22% to $15.7 billion.
Shoppers surveyed in the eSpending Report noted that more than 16% of their
holiday budgets were slated for online purchases, as compared to just 14% during the 2001 season. The survey also showed spending patterns at two ends of the spectrum, with some shoppers spending
earlier in the season and others procrastinating until the very last week before Christmas.
"With each holiday season ecommerce becomes more of a mainstream activity, attracting a greater mass
audience," said Lori Iventosch-James, director of ecommerce research, Harris Interactive. "This season shoppers allotted more of their holiday budget to online spending. And this, combined with an
increase in the total ecommerce population helped drive year-over-year growth."
"Etailers pushing big discounts with free shipping in the beginning of November drove consumers to take advantage of
the special savings early," added Iventosh-James. "We also saw an increase in purchases right before Christmas this year, indicating that shoppers felt more comfortable waiting until the last minute
and paying for extra shipping charges to get their gifts on time."
Consumers spent more than $3.1 billion in books, music, and video/DVD, driving the category to the top spot during the holidays.
Year-over-year, the category posted a 40% increase. Rising 20% since 2001, apparel recorded $2.7 million in sales, while consumers spent nearly $2 billion on travel.
The top two fastest growing
categories for the season were toys and video games and consumer electronics, with shoppers increasing spending for both categories by more than 72%. With nearly $2 billion in sales, consumer
electronics claimed the No. 4 ranking among shopping categories, while toys and games posted online spending of more than $1.8 billion.
Men vs. Women and Young vs. Old
Women comprised
51% of the total online shopping population during the 2002 holiday season, as compared to 49% of males. This shows a slight change from last season when the breakdown was 50/50.
"The gender
breakdown between male and female Internet surfers mirrors the U.S. population, with women comprising a higher audience size over men," said Lisa Strand, director and chief analyst,
Nielsen//NetRatings. "Throughout the year women tend to do more shopping online in general, but we see an even parity among the genders during the holidays, as men have an obligation to shop for
gifts."
In addition, the eSpending Report reveals that younger shoppers ages 18-24 comprised 7 percentage points more of the shopping population in 2002, as compared to 2001. Younger shoppers made
up 17% of the total online shopping population this season, while other age groups showed no growth over the past year.