E-commerce

 

The Electronic Commerce, or E-commerce, explosion is at hand. The “baby boomers,” those aged 35 to 55, are still the driving force behind the economy, but the “X generation,” which consists of ages 25 to 35 and the “Y generation,” 24 and younger, are fueling the E-Economy.

Brian Corsin, owner of Corsin Marketing International, said that he expects that in the next 5 to 10 years, as the “Y generation” gets into the work force and starts making money, E-commerce shopping is going to jump from a 50 million industry to 7 trillion industry.

Currently, he said, only 2 percent of consumers consistently shop online, but as the generation that was raised on the computer and the Internet, the “Y generation,” becomes a primary consumer that number is likely to jump to follow in the footsteps of the cell phone industry.

In the late 1980s, cell phones, as big and bulky and with bad reception, were only used by about 2 percent of the population. By the mid-nineties, five years later, cell phones became more efficient and were used even more, but in the 21st century, practically 90 percent of the U.S. population owns a cell phone. E-commerce has the exact same growth potential, if not more, said Corsin.

Pam Danziger, president of Unity Marketing, looked at the explosion of E-commerce from another angle and in the context of a particular market. She said she thinks that as the children of the “empty-nesters” or “baby boomers,” get out of college, the now “empty-nesters” will have more discretionary income for luxury items. The Internet was named very or somewhat important to 44 percent of luxury consumers.

“Empty-nesting consumers are at their peak in earnings while they no longer have to stretch the family budget across the demands of growing children,” Danziger said. “hat means they have a lot of discretionary money to spend on personal luxuries so the prospects of marketers of luxury automobiles, jewelry, apparel, beauty products, sporting goods, among others, and luxury service providers, like spas, cosmetic and beauty treatments, travel, and landscaping to name a few, are particularly bright.”

In a recent Unity Marketing survey, retail sales on the Internet increased by 8.4 percent since February 2002.

Sources: CyberAtlas, interview with Brian Corsin


 
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  Copyright © 2003 Connie Rizzo