NRF/Forrester Research Launch Online Retail Index, Revealing $2.8 Billion In Consumer Spending In January
The National Retail Federation and Forrester Research (Nasdaq: FORR), in conjunction with Greenfield Online, announced today the first results of the NRF/Forrester Online Retail Index. According to the first survey, US consumers spent $2.8 billion online during January 2000 on a variety of products. Consumers spent the most on airline tickets, followed in a dead heat by computer hardware and books, and then software and apparel. The NRF/Forrester Online Retail Index is a monthly measurement on the growth of consumer online spending.
“Shopping online is here to stay, as evidenced by the fact that in January online consumers spent more than half of what was spent online during the entire holiday season,” said David M. Cooperstein, director of Forrester’s Online Retail Research. “The Index will help identify what consumers are buying and how much they are spending using this new purchasing mechanism.”
Results from the first NRF/Forrester Research Index indicate that certain categories, such as media and travel, are maintaining their lead in consumer eCommerce purchases. Media products — books, music, videos, and software — accounted for $653.6 million, or 23.3% of the month’s purchases. The combined air, hotel, and car rental business booked online in January equals $582.8 million, or nearly 21% of all online purchases in the month (see Figure 1).
“NRF is excited about the launch of this Index, which will provide our members and the industry at large with a monthly view of how consumers are using the Internet as a retail channel,” said Scott Silverman, NRF’s vice president, Internet Retailing. “NRF has worked closely with Forrester Research to ensure that the Index’s methodology yields the most accurate picture of consumer online spending.”
Over the past three years, Forrester has been conducting consumer research into the online spending habits of consumers. Growth has been explosive, increasing from $2.4 billion in 1997 to $8.0 billion in 1998 and $20.2 billion in 1999. Similarly, spending by household has risen, from $899 in 1998 to $1,167 in 1999.
About The Index
The NRF/Forrester Online Retail Index measures, on a monthly basis, the growth and seasonality of online shopping based on data collected from online shoppers. The Index is based on 5,000 responses to an online panel fielded by Greenfield Online during the first 10 business days of each month. The survey results for January 2000 were fielded from February 3, 2000, through February 14, 2000.
The monthly panel is weighted to Forrester Research’s Benchmark Panel, which surveyed nearly 90,000 US and Canadian members of a consumer mail panel developed by NPD Group, a market research firm. Data was weighted to represent the North American population demographically. The survey was fielded from late November 1999 to February 2000.
About The National Retail Federation
The National Retail Federation (NRF) is the world’s largest retail trade association with membership that encompasses all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, and independent stores. NRF members represent an industry that encompasses more than 1.4 million US retail establishments, employs more than 20 million people — about 1 in 5 American workers — and registered 1999 sales of $3.0 trillion. NRF’s international members operate stores in more than 50 nations. In its role as the retail industry’s umbrella group, NRF also represents 32 national and 50 state associations in the US as well as 36 international associations representing retailers abroad.The Index can be found on the National Retail Federation Web site at www.nrf.com.
About Greenfield Online
Greenfield Online, Inc. is the world’s only fully Internet-enabled, full-service marketing research provider. The company pioneered the concept of online research and now is developing additional pure-play Web-based information systems. Leading corporations rely on Greenfield Online for consumer and business-to-business studies that are faster, better, and richer than previously possible.
Additionally, the Greenfield Online Digital Consumer tracking studies examine numerous eCommerce subjects and important vertical markets. Incorporated in 1995, the company is headquartered in Wilton, Conn., with a satellite office in San Francisco. Additional information about Greenfield Online and its services can be found on the company’s Web site at www.greenfield.com.