Consumer Attitudes & Online Retail Dynamics in the US

Report Summary

Despite difficult economic conditions, the US online retail market continued to perform well in the review period and substantial growth is expected in the forecast period. ICD does, however, expect the market to mature towards the end of the forecast period, resulting in declining annual growth rates. In 2010 per capita online retail spending recorded an annual growth of 13.6% compared to a 7.2% growth in 2009.

This growth was predominantly the result of general economic recovery in 2010. Although rapid online sales growth was recorded in the review period as consumers took advantage of greater convenience, lower prices and an increased product range, this growth is expected to slow towards the end of the forecast period as consumers reach a point of equilibrium between what they are willing to buy in traditional stores vs. online.

Despite difficult economic conditions, the US online retail market continued to perform well in the review period and substantial growth is expected in the forecast period. ICD does, however, expect the market to mature towards the end of the forecast period, resulting in declining annual growth rates. In 2010 per capita online retail spending recorded an annual growth of 13.6% compared to a 7.2% growth in 2009

Consumer Attitudes and Online Retail Dynamics in the US ' provides in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories) and reviews of latest best practice in online retail site design.

The report provides core insights into consumer behavior and highlights the latest online trends and their impact on online product sales. Core data sets give both historical contexts and a view into the future, allowing marketers to update their strategic planning and fill gaps in their knowledge about this rapidly evolving channel. By examining best practice from leading national large-scale online retailers, as well as reviewing innovative approaches from smaller players, the report also provides insights and ideas about how best to approach growing online sales for your business.  

Key Features

• Understand the consumer behavior and online trends in the US; along with which products (of 25 different categories) will be the major winners and losers in the coming years.
• Improve market and strategic planning using highly granular, forward-looking market data.
• Learn from best practice approaches outlined in the case studies of leading online retailers.
• This report provides the magnitude, growth, share and dynamics of the online retail market.
• Core data sets give both historical contexts and a view into the future – providing data from 2005 through to 2015.
• By examining best practice from leading national online retailers, the report also provides insights and ideas about how best to approach growing online sales for your business.

Table of Contents

1 Introduction

1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.3.1 Overview
1.3.2 The Triangulated Market Sizing Method
1.3.3 Industry Surveys in the creation of Retail Market Data
1.3.4 Quality Control and Standardized Processes

2 Consumer Insight: Online Shopping Attitudes and Behaviours
2.1 Overview of the US Online Shopping Environment
2.1.1 Increasing internet penetration will continue to be the catalyst behind online sales growth
2.1.2 During the review period, broadband internet users grew at a CAGR of 14.75%
2.1.3 Migration of conventional mobile phone users to smartphones will drive m-commerce activity in the US
2.1.4 Consumers to keep spending below pre-crisis levels
2.1.5 Multichannel retailers dominate the online market
2.2 Consumer Attitudes and Behaviors
2.2.1 Increased spending coupled with growth in online purchasers to drive online retail sales
2.2.2 Growth in per capita online spending will slow towards the end of the forecast period
2.2.3 Significant growth in smart phone ownership will drive future growth of mobile e retail in the US
2.2.4 Online retailing continues to outpace store growth
2.2.5 High income groups account for the largest share of online purchases
2.2.6 Social networking websites will emerge as an e-commerce channel
2.2.7 Daily deal sites such as Groupon continue to capture consumer attention

3 Online Channel Dynamics
3.1 Online’s Share of Total Retail Sales
3.1.1 US Online vs. Offline Channel Forecasts
3.1.2 Online Penetration: Global and Regional Comparisons
3.2 Channel Dynamics
3.2.1 US Channel Group Dynamics – Future Performance
3.2.2 Channel Group Share Development
3.2.3 Individual Channel Performance
3.3 Category Dynamics
3.3.1 Online vs Offline Retail Sales Comparison by Category Group 2010
3.3.2 Online Retail Market Dynamics by Category Group
3.3.3 Online Retail Sales Share by Product Group
3.3.4 Online Retail Sales Growth by individual Product Categories
3.3.4.1 Food and Grocery Categories Market Size and Forecasts
3.3.4.2 Electrical and Electronics Categories Market Size and Forecasts
3.3.4.3 Music, Video and Entertainment Software Group Market Size and Forecasts
3.3.4.4 Apparel, Accessories and Luxury group Market Size and Forecasts
3.3.4.5 Books, News and Stationery Group Market Size and Forecasts
3.3.4.6 Sports and Leisure Equipment Product Group Market Size and Forecasts
3.3.4.7 Furniture and Floor Coverings Product Group Market Size and Forecasts
3.3.4.8 Home and Garden Product Groups Market Size and Forecasts

4 Case Studies: Leading Online Retailers in the US
4.1 Retailer 1: L.L.Bean
4.1.1 Business Description
4.1.2 Site Experience
4.2 Retailer 2: Bestbuy.com
4.2.1 Business Description
4.2.2 Site Experience
4.3 Retailer 3: Saks.com
4.3.1 Business Description
4.3.2 Site Experience
4.4 Other Innovative Retailers in the US
4.4.1 Jcpenny.com
4.4.2 Quirky.com

5 Appendix
5.1 Methodology
5.2 Contact us
5.3 About ICD Research
5.4 Disclaimer

List of Tables

Table 1: ICD Research Retail Channel Definitions
Table 2: ICD Research Retail Category Definitions
Table 3: ICD Research Retail Country Coverage
Table 4: US Online Activities by Income Group, 2010
Table 5: US Channel Retail Sales & Forecast (US$ billion), By Channel, 2005-2015
Table 6: US Channel Retail Sales & Forecast (% Share), 2005-2015
Table 7: US Online Sales Vs Global Average
Table 8: US Online Sales Vs North American Region
Table 9: US Overall Retail Segmentation (US$ billion), By Channel Group, 2005-2015
Table 10: US Channel Retail Sales & Forecast (US$ billion), By Channel Group, 2005-2015
Table 11: US Channel Retail Sales & Forecast ( % Share), By Channel Group, 2005-2015
Table 12: US Channel Retail Sales & Forecast (US$ billion), By Channels, 2005-2015
Table 13: US Retail Sales Split (US$ billion), Online Vs Offline, 2010
Table 14: US Online Retailers Market Dynamics, By Category Group, 2005-2015
Table 15: US Online Retail Sales & Forecast (US$ billion), By Category Group, 2005-2015
Table 16: US Total and Online Retail Sales in Food & Grocery Product Categories (US$ billion),  2005-2015
Table 17: US Total and Online Retail Sales in Electrical & Electronics Categories (US$ billion),  2005-2015
Table 18: US Total and Online Retail Sales in Music, video & entertainment categories (US$ billion),  2005-2015
Table 19: US Total and Online Retail Sales in Apparel, Accessories & Luxury Categories (US$ billion),  2005-2015
Table 20: US Total and Online Retail Sales in Books, News & Stationery Categories (US$ billion),  2005-2015
Table 21: US Total and Online Retail Sales in Sports & Leisure Equipment (US$ billion),  2005-2015
Table 22: US Total and Online Retail Sales in Furniture & Floor Coverings Categories (US$ billion),  2005-2015
Table 23: US Total and Online Retail Sales in Home & Garden Product Categories (US$ billion),  2005-2015

List of Figures

Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Internet Users (millions), 2005-2010
Figure 3: Total Fixed Broadband Internet Subscribers (millions), 2005-2010
Figure 4: Mobile Phone Penetration, 2005-2010
Figure 5: US Online Purchasers Share in Total Internet Users (%)
Figure 6: US Per Capita Online Retail Expenditure (US$), 2006-2015
Figure 7: US Growth of Smart Phone Ownership, 2008-2010
Figure 8: US Growth of Traditional Retailing Vs Online Retailing, 2006–2015
Figure 9: 1-800-Flowers.com Facebook Page
Figure 10: US Channel Retail Sales & Forecast (US$ billion), By Channel, 2005-2015
Figure 11: US Online Sales Vs Global Average (% of Total Retail)
Figure 12: US Online Sales Vs North American Average (% of Total Retail)
Figure 13: US Overall Retail Market Dynamics, By Channel Group, 2005-2015
Figure 14: US Retail Sales and Forecast (US$ billion), By Channel Group, 2005-2015
Figure 15: US Retail Sales Split, Online vs Offline 2010
Figure 16: US Online Retailers Market Dynamics, By Category Group, 2005-2015
Figure 17: US Online Retail Sales & Forecast (US$ billion), By Category Group, 2005-2015
Figure 18: www.llbean.com: Well Organized Product Pages
Figure 19: www.llbean.com: Well Organized Catalogue
Figure 20: www.bestbuy.com: Well Organized Home Page
Figure 21: www.bestbuy.com: Strong Comparison Tool
Figure 22: www.saks.com: Homepage focused on advertising New Arrivals
Figure 23: www.saks.com: Well organized Product Section
Figure 24: www.saks.com: Interactive Product Thumbnails
Figure 25: www.saks.com: Product Page offering Video Clips
Figure 26: jcpenny.com - Facebook Page
Figure 27: Quirky: Product Page offering Innovative Products