Monday - May 22, 2000
Online Grocers Will Succeed Eventually
US Internet users will spend $8.8 billion at
online grocery stores in 2004, in comparison with $200 million
according to IDC's new report, "Online Grocery Market
Forecast and Analysis, 1999-2004".
Despite this optimistic prediction, online
grocers can expect difficult times ahead. They will have
to spend at least $25 million to become established players
and this figure does not include customer acquisition costs,
which are high in this market.
They will also have to suffer low product margins,
heavy competition and other problems that are faced by grocers
in general, such as achieving capital efficiency and overcoming
obstacles to market penetration.
IDC says that profitability is possible for
online grocers, particularly if they aim at older suburban
markets. and expand their product ranges to include higher
margin goods and services.
These would include health and beauty products,
pet supplies, household cleaners, dry cleaning, video rental
and prepared foods.
Internet Users Like Choosing News
Reading online news is Internet users' second favourite
online activity after email, according to a new survey from
the Zatso, Inc and the Radio and Television News Directors
One in 3 respondents said they read online
news and information every day. Local or community news,
statewide news and US news and weather were of most interest
to those polled. Only 1 in 10 respondents did not think it
was important to keep up with the news.
Almost 3 in 4 Internet users would be interested
in "news on demand" services and 2 in 3 would like
The survey report noted that respondents liked
the idea of controlling the news they see instead of watching
or reading news items selected by others. Over two thirds
of Internet users believe they would be better at selecting
news of interest to them than a professional news editor
The survey, "A View of the 21st Century
News Consumer," was designed and conducted by Frank
N. Magid Associates.
Return to May 2000