Tuesday, November 21, 2006

Total Online Consumer Spending on Track to Reach $170 Billion in 2006

In the third quarter of 2006, Online Non-Travel (retail) spending increased to $23.1 billion, up 23 percent while travel spending, despite a slowing growth rate nonetheless reached $18.2 billion, up 9 percent. Overall, total online spending by consumers reached $41.3 billion in the third quarter, representing a 16-percent increase versus the same period in 2005.

E-commerce Spending

Q3 (Jul – Sep)

Percent Change

2005

2006

Non-Travel

$18.8

$23.1

23%

Travel

$16.8

$18.2

9%

Total

$35.6

$41.3

16%


While total non-travel spending rose 23 percent, some retail categories far outperformed the average, including Consumer Electronics (excluding PC Peripherals), which rose 42 percent and Apparel & Accessories, up 32 percent versus the same quarter last year. The Sport & Fitness and Computer Software (excluding PC games) categories rose 29 percent and 27 percent, respectively.

Retail Category

Percent Change

Consumer Electronics (Excl. PC Peripherals)

42%

Apparel & Accessories

32%

Sport & Fitness

29%

Computer Software (Excl. PC Games)

27%

Event Tickets

22%

Year-to-Date Online Spending Remains Strong, On Pace to Reach $170 Billion in 2006

Through the first three quarters of 2006, total e-commerce spending rose 19 percent versus last year to $122.1 billion, buoyed by a 24-percent increase in non-travel spending to $69.1 billion. Online travel spending increased 13 percent to $52.9 billion.


Jan – Sep

Percent Change

2005

2006

Non-Travel

$55.8

$69.1

24%

Travel

$47.1

$52.9

13%

Total

$102.8

$122.1

19%

Overall, total consumer online spending in 2006 should reach approximately $170 billion. Of that total, that non-travel e-commerce will break the $100 billion threshold for the first time.

Online consumer spending at U.S. sites and particularly non-travel spending remains strong. With year-over-year growth rates in U.S. online non-travel spending at about 23 percent in the third quarter, the Web continues flexing its muscle as one of the important drivers of retail sales growth.

Source: comScore

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