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Online Research Drives Offline Retail Location Sales

Here comes the “Precision Shopper.” Any retailer who isn’t using the online channel to promote offline sales—as well as online sales—is missing a sizable opportunity.

”Today, online consumers think nothing of shopping across a retailer’s stores, Web site and catalog,” says Jeffrey Grau, eMarketer Senior Analyst and author of the new report, Multi-Channel Retailing, “As a consequence, online product research is driving more in-store sales than online ....”

Last year, eMarketer estimated that store sales influenced by online research totaled $471 billion. Comparatively, retail e-commerce sales were only $136 billion.

Looked at another way, for every $1 in online sales, the Internet influenced $3.45 of store sales.

”Online consumers are becoming precision shoppers,” says Mr. Grau. “They are availing themselves of the wealth of information resources online to discover and evaluate products, compare them and find where they can be purchased.”

Mounting research shows that a significant percentage of store purchases are influenced by online product research.

In addition, the “eHoliday Mood Study,” conducted during last year’s holiday shopping season by Shop.org, showed that 63% of US online buyers made their holiday purchases in two or even three retail channels.

The percent of respondents who used more than one channel would have been even higher if consumers who researched products in one channel then bought them in another were included.

According to eMarketer estimates, combined Web-influenced store sales and retail e-commerce sales accounted for 15% of retail sales in 2007. By 2012, the percentage will nearly double to 28%.

Forrester Research, in contrast, reported that Web-influenced store sales plus e-commerce sales accounted for 27% of retail sales in 2007—almost twice eMarketer’s estimate.

”As much as online shopping is a convenience and the online shopping experience continuously improves, people are not about to abandon stores anytime soon,” says Mr. Grau.

So if your cross-channel marketing capabilities are still in the early stages of development, don’t despair. As Mr. Grau says, “The majority of multi-channel retailers still have work to do to resolve organizational and IT issues that stand in their path.”

Find out more about how online is influencing offline sales, download the new eMarketer report, Multi-Channel Retailing, today.

Article Titled: Online Research Drives Offline Sales
Published: FEBRUARY 26, 2008

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eMarketer subscribers have access to thousands of reports, articles and charts related to topics like this one. To learn more, visit: www.emarketer.com

Multi-Channel Retailing Report Summary

Today, online consumers think nothing of shopping across a retailer’s stores, Web site and catalog. As a consequence, online product research is actually driving more land-store sales than online sales.

The Multi-Channel Retailing report analyzes the factors that are contributing to make online product research a vital driver of offline retail sales.

Any retailer who isn’t using the online channel to promote offline sales—as well as online sales—is missing a huge opportunity.

In 2007, eMarketer estimated that store sales influenced by online research totaled $471 billion. Comparatively, retail e-commerce sales were $136 billion.

Another way to look at it is that for every $1 in online sales, the Internet influenced $3.45 of store sales.

From 2007 to 2012, Web-influenced store sales are forecast to grow at a 19% average annual rate, compared with a 12% rate for retail e-commerce.

US Web-Influenced Retail Store Sales vs. Retail E-Commerce Sales, 2007 & 2012 (billions and CAGR*)


Key questions the “Multi-Channel Retailing” report answers:

* How do consumers shop across retailers’ stores, Web sites and catalogs?
* How do e-commerce sales compare with store sales that are influenced by online product research?
* What do consumers expect from multi-channel retailers?
* How effective are retailers in living up to these expectations?
* And many others…

eMarketer Reports—On Target and Up to Date

The Multi-Channel Retailing report aggregates the latest data from marketing and communications researchers with eMarketer analysis to provide the information you need to make smart, accurate business decisions.

Today, online consumers think nothing of shopping across a retailer’s stores, Web site and catalog. As a consequence, online product research is actually driving more land-store sales than online sales.

Sources Used by eMarketer in Preparing This Report:
Accenture
Akamai
Allurent
AMR Research
Avenue A | Razorfish
BIGresearch
Direct Marketing Association (DMA)
eMarketer
FGI Research
ForeSee Results
Forrester Research
Gartner
Internet Retailer
J.C. Williams Group
JupiterResearch
Microsoft
Nielsen Online
Retail Advertising and Marketing Association (RAMA)
RIS
Shop.org
Shopzilla, Inc
StartSampling
STORES Magazine
the e-tailing group
US Department of Commerce
Zoomerang

©2007 eMarketer Inc. All rights reserved

Views: 182

Tags: Drives, Location, Offline, Online, Research, Retail, Sales

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