Home / Knowledge / News / Apparel/Garments / Online shopping in US reaches a plateau: BCG
Online shopping in US reaches a plateau: BCG
15
Jun '16
The days of easy growth for e-commerce may be over, according to a new US consumer research by The Boston Consulting Group (BCG).

Even though more than three-quarters of Americans, ranging in age from 15 to 85, have bought something from Amazon.com in the last year, the overall move to online shopping is expected to slow considerably over the next three years, according to a BCG survey of more than 3,300 Americans completed this month.

In 41 categories, from athletic apparel and pet supplies to insurance products and consumer electronics, the vast majority of Americans surveyed – 78 per cent to 92 per cent, depending on the category -- said they don't plan to increase their online spending over the next three years. And in many categories -- including baby products and food, beverages, fine jewelry, news and magazines, cars and packages goods -- more than a quarter of those already shopping online said they will spend less online in the future.

In other words, more than twice as many people say they'll spend less online over the next three years than those who say they'll spend more online. Strikingly, the intention to keep online shopping at current levels and slow down in many categories is virtually identical among Millennials, Gen-Xers and Baby Boomers.

"Consumers are notoriously unable to predict their spending patterns," said BCG Senior Partner Michael J. Silverstein, an expert on consumer behaviour and retail and packaged-goods innovation.

"However, the findings from this research certainly pour cold water on everyone's expectations for a continuously rising e-commerce world. E-commerce winners will have to earn new dollars and new spending by providing new value. That means me-too players will suffer -- and leaders will need to provide more user-friendly websites, lower prices and offers tailored to individuals customers."

Silverstein, co-author of the recent book Rocket: Eight Lessons to Secure Infinite Growth, also noted, "E-commerce is a channel, like any form of distribution: growth does not continue at a rapid, double-digit rate forever. Most consumer categories have been available online for several years. The 'newness' is gone, and we're looking at mature levels of penetration in many categories."

Said Christine Barton, the BCG senior partner who led the research, "We've done this survey periodically, and this is the first time we've seen such low future intention to increase online spending across categories. The plateau doesn't mean that it's 'game over' for online and omni-channel retailers. But it does suggest that e-commerce growth will now be harder for most of them." (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search