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

Apparel/Garments | On 23rd Jun 2017

Alfredo Grassi to develop graphene-enhanced workwear

Alfredo Grassi, manufacturer of customised protective clothing,...

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Urs Stalder
Sanitized AG

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Aditi Somani
Aditi Somani

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Yash P. Kotak
Bombay Hemp Company

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

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


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