Online Holiday Shopping Will
Net €2.6 Billion For Europe’s Retailers
Though a far cry from the $10 billion in holiday sales
that Forrester expects in the US, European consumers
will spend a considerable 2.6 billion online for the
holidays -- 30% of all 2000 online retail, according
to Forrester Research B.V. Significantly, this value
nearly equals all online retail sales in Europe for
all of 1999.
In all European countries, holiday
shopping will account for a significant
percentage of this year's total online
sales -- ranging from 23% in Denmark
to 39% in Greece. German retailers
will reap the highest revenues, taking
715 million from online shoppers,
which equates to 31% of all 2000
online sales. Second will be the
UK, where the holiday season will
drive 664 million in sales and account
for 29% of all online sales this
year. In France, the online shopping
season will be worth 292 million,
delivering 36% of all online sales
for the year.
"As the number of online shoppers
grows over time -- in the first six
months of this year alone, the number
nearly doubled -- retailers have
found more justification to migrate
their offering to the Net," commented
Forrester analyst Abigail Leland. "In
addition to enjoying better selection
from trusted retailers, Europe's
online consumers simply gain trust
as they spend more time online. In
Europe's biggest Net economies, such
as the UK, consumers have been online
long enough for the effect to hit.
In countries like Spain and Italy,
the waves of free-ISP Internet initiates
who first came online last Christmas
will hit their first-year mark and
make their first online purchases
this holiday."
In key categories like toys, offline
holiday sales can account for up
to 50% of total yearly sales. Only
in categories like groceries and
travel do retailers see proportionately
little additional spending during
the holidays than in other seasons.
"Europe's retailers learned a lesson
from the fiascoes that US online
retailers encountered last year so
they included basics like customer
service, performance, and products
in this year's plans," Leland added. "Those
that aren't scrambling to implement
these basics at the last minute must
now focus on the finishing touches
that eliminate barriers to online
shopping."
Recognizing that many of this year's
online shoppers in Europe will be
first-timers, Forrester advises that
retailers employ three simple elements
to reassure Net buyers during their
early online purchases. First, provide
them with a simple statement on payment
guarantees, placed consistently throughout
the site -- not pages of legal jargon
buried in the FAQ section --to reassure
inexperienced users that there is
little to fear. Second, keep a phone
number visible at all times to confirm
to users that there is a true business
behind the fancy interface. Finally,
use peers' advice -- such as top
10 lists and user-generated product
reviews -- to give customers objective
reassurance to click the "buy" button.
"Smart retailers will make online
shopping a no-brainer by packaging
convenience offers -- top-selling
products complete with wrapping service,
delivery coverage, and shipping costs
-- that send users straight from
the home page to the checkout," Leland
added. "And retailers can't ignore
email -- the function that is the
first port of call for most new Net
users. Successful players will use
this to their advantage by sending
out low-tech, text-only emails that
encourage users to "pass it on" --
reaching consumers that aren't particularly
Web-savvy yet but who will recognize
a good offer when they see it."
