The economy is still in the crapper – and now it seems the recent swine flu outbreak is gearing up to deal it another low blow – but there are signs of improvement, if only on the Internet.
According to a recent study conducted by Forrester Research and Shop.org and published by eMarketer, online sales in the United States increased, on average, 11 percent in the first quarter of this year. Of the 80 companies studied, nearly 60 percent reported growth in online sales, while almost 70 percent of consumer brand manufacturers and multichannel retailers saw an increase in Web sales. Web-only companies, however, weren’t so lucky; about 60 percent of businesses without brick-and-mortar stores reported sales declines.
An interesting set of statistics, for sure. And they beg a couple of questions.
First, if Web sales saw an uptick in the first three months of 2009, why were Web-only retailers left in the dark? Is it possible that shoppers prefer to compare prices in store, then head to the Web for deeper discounts? Or could it be that brick-and-mortars are encouraging this transition by undercutting their Web-only competition?
It’s possible.
Of course, what’s more interesting is how the aforementioned flu may affect buying trends. (Insert obligatory “viral” marketing joke here.) We suspect that if the virus gets out of hand, causing communities to be quarantined (we sure hope it doesn’t come to that!), many of us might not have a choice but to get our goods – and we’re talking necessities here, not luxury items – from the Internet. That is, if delivery companies continue to deliver.
Right now, the situation is hard to predict, but it’s one we’re watching. From our vantage point, this current crisis has the potential to completely change the game, considering there’s a game left to play.
What do you think? Will online sales continue to climb organically? Will they increase as fear of the flu spreads? And how will the big picture – an already weak system faced with another potential setback – affect the future of the national and global economy?
Leave us a comment with your thoughts on this topical conversation.
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Interactive Marketing – Is That Really Where It’s At? « Hiring The Internet
[...] seems to us that if online sales are up, as we report in this post, it’s only natural to assume that interactive ROI will increase too. Unless, of course, some [...]
Interactive Marketing – Is That Really Where It's At? | Hiring the Internet
[...] seems to us that if online sales are up, as we report in this post, it’s only natural to assume that interactive ROI will increase too. Unless, of course, some [...]