It's A Holiday Wrap The beginning of the year Research Briefs wouldn't be complete without a look at the end of the year! The January 4th holiday eSpending Report from Goldman, Sachs &
Co., Harris Interactive, and Nielsen//NetRatings revealed that online shoppers in the U.S. spent $23.2 billion during the 2004 holiday season, excluding travel. This reflects a 25 percent increase
from the $18.5 billion spent online during the same timeframe in 2003.
According to the 2004 Report, online consumers spent the most on apparel/clothing, followed by the toys/video games
category, while the consumer electronics category rounded out the top three.
Categories generating the highest year-over-year growth in holiday dollars included jewelry, flowers and computer
hardware/peripherals. Floral retailers experienced a 59 percent surge in online revenue, while computer hardware/peripherals increased 30 percent over last season.
Online Shopping Categories
2004 Holiday Season (Projected revenue in million $)
| Category | % of Total | Projected Revenue |
| Apparel/Clothing | 16% | $3,755 |
| Toys/Video Games(hardware and software) | 11% | $2,528 |
| Consumer Electronics | 10% | $2,306 |
Source: Goldman Sachs, Harris Interactive, and Nielsen//NetRatings eSpending
Report, 2004
Fastest-Growing Categories Year-over-Year 2004 Holiday Season (revenue in million $, growth in %)
| Category | 04 Online Rev | 03 Online Rev | 2004/2003 Growth |
| Jewelry | $1,888 | $888 | 113% |
| Flowers | $530 | $333 | 59% |
| Computer Hardware/Peripherals | $2,144 | $1,650 | 30% |
Source: Goldman Sachs, Harris Interactive, and Nielsen//NetRatings eSpending
Report, 2004
Heather Dougherty, senior Retail analyst, Nielsen//NetRatings, said "Consumers have become accustomed to purchasing online over the years and look to the Internet to find
comprehensive product information, competitive prices and easy gift delivery, allowing them to have more time to spend on other holiday activities."
The report showed that overall the majority of
online consumers were satisfied with this season's Web shopping experience:
- 37 percent were very satisfied
- 24 percent were somewhat satisfied
- 30 percent of respondents felt
this year's online shopping was better than last year
The 2004 eSpending report indicated that:
- 36 percent of respondents cited a preference to avoid crowds as the top reason to
buy online rather than visit a store
- 36 percent also cited finding a lower price online was the reason they took to online shopping
- 33 percent said a wide product selection was their
top reason to buy online
Source of all data: Goldman Sachs, Harris Interactive and Nielsen//NetRatings