iknowthe.net | Internet and Ecommerce Consultant

Life is random

The new ipod might be called shuffle. or is that ishuffle. Anway its slogan seems to be “life is random”.

Apple’s Jobs to unveil 2005 plans

Its the keynote at apple expo. I’m excited. Will it be a flash ipod or a £266 mac (OMG). I’m hoping for a powerbook speedbump only so mine contines to look current, but other that that, bring it on. Rumours abound, including a new version of keynote, new iwork software (which has got to beat crappy, crappy office for mac) and (joy) a multimedia home apple hub. Can’t wait.

A record number of Brits last year eschewed the pre-Xmas high street shopping stampede in favour of online shopping, and the trend is set continue during the traditional January sales.

An estimated 12m Britons shopped online during 2004, and their Yule spend alone – during the last three months of the year – contributed £2.6bn to the UK’s £245bn total annual retail sales. This figure represents a 44.5 per cent increase on the same period in 2003.

This trend towards virtual purchases has hit high street retailers. Woolworths admitted in a Herald report that its “plan to prepare stores for Christmas three weeks earlier than usual had backfired” and that Xmas revenues had been “disappointing”. The chain blames a combination of factors – including DVD piracy and a “general malaise” across the toy industry, but online bargains and discounts have greatly contributed to the appeal of e-shopping at the expense of the traditional store.

As the Herald notes, Dixons, Currys and PC World all offer tempting savings for e-shoppers. For example, Dixons is offering a Fuji 605 digital camera for £84.90 online while the in-store price is £169.89.

The head of projects and marketing at IMRG, Andrew McClelland, said: “My feeling is that internet January sales shopping will have risen again this year.

“We saw it in the run-up to Christmas and I think we will see it again. At the moment, it is looking a little tight – high street versus the web – but what we are hearing is that electrical products are proving particularly popular with e-shoppers.”

However, although UK online sales are on the up-and-up, some analysts warn that the total spend must be put in perspective. Rhys Williams of Seymour Pierce told the Times: “Online retailers are showing significant growth, but it is important to recognise that they are working from a very low base. Four years ago, online consumers accounted for less than 1 per cent of total sales. That figure has now increased to 2.4 per cent. “On that basis, I would hesitate to argue that online retailers are taking market share from conventional retailers. Also, remember that most of the companies that people are buying from online also have their own stores on the high street. There are very few pure e-tailers out there.”

UK supermarket chain Tesco – which has its own successful online presence – argues that people are simply chosing to spend their cash in alternative ways, rather than at different retailers: “It is a case of different customers wanting to shop in different ways. Some choose to buy bulky items online while preferring to select fresh produce themselves from their local store. Other customers shop entirely online because it suits their lifestyle.”

According to the holiday e-spending report from Goldman Sachs, Harris Interactive and Nielsen//NetRatings, US online consumers blew $23.2bn in the run-up to Christmas – a rise of 25 per cent from a year ago. Most of the cash went on clothing, toys, video games and consumer electronics, while items like jewellery, flowers and computer gear made big gains.

“Online shopping contributed significantly to overall 2004 holiday sales by attracting consumers through a broad product selection,” said Heather Dougherty, senior retail analyst, Nielsen//NetRatings. “Consumers have become accustomed to purchasing online over the years and look to the internet to find comprehensive product information, competitive prices and easy gift delivery, allowing them to have more time to spend on other holiday activities.”
The report said that US online consumers spent some $3.8bn on clothing and $2.5bn on toys and games. Some $2.3bn was spent on consumer electronics during the 1 November to 26 December period.

Meanwhile, US online consumers spent $1.9bn on jewellery, or 113 per cent more than a year ago. Online sales of flowers were up 59 per cent to $530m, while internet sales of computer equipment grew by 30 per cent to $2.1bn.

Amazon trumpets record Christmas says the BBC

Amazon has benefited from surging demand for iPods
Internet retailer Amazon has cheered Wall Street by reporting the busiest Christmas in its 10-year history.
At its height, the company said it had been logging orders for 32 items per second worldwide.
The company attributed much of the increased trade to rampant demand for Apple computers and iPod music players.
The news sent Amazon’s shares up by almost 9%, as traders seized on good news on an otherwise lacklustre day’s trading on Wall Street.

Interesting how the ipod has finally brought macs to a wider audience. If the rumours of a sub $500 mac are true, ipods could really boost sales. Ah well, I was here first