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

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search