Report: Online groceries to fuel growth in eCommerce 

According to the 2008 IDATE DigiWorld  Yearbook 2008, presented yesterday (5 June) in London, eCommerce revenues in Western Europe are expected to show more than a 40% increase in 2007 compared with the previous year. It further foresees an almost three-fold boost by 2010. 

Indeed, IDATE , which is one of the leading European research companies for the telecoms and digital markets, reckons that online retail sales in 2007 represented €124 billion in the 15 'old' EU member states, plus Switzerland and Norway. It is estimated that the market will reach €221.3 billion by 2010.

Nevertheless eCommerce would still represent a marginal share of the entire retailing sector.

Up till now, the UK is by far the biggest market, with annual sales in 2007 of more than €37 billion. Germany comes second, but is predicted to almost close the gap in revenues by 2010 by which time it is estimated that its e-market will account for €51.3 billion.

Globally, the US remains the leading player, with online sales of more than €95 billion in 2007, while China is expected to reach the top by 2010 with exchanges of over €180 billion. The global forecast for eCommerce depicted by IDATE foresees revenues worth almost €740 billion by 2010.

Social networks are particularly deemed to spur eCommerce. Websites such as Facebook or MySpace attracted over 114 million adult visitors in June 2007 alone. According to the report, these users are more likely than average Internet surfers to visit eCommerce sites. The next step for social networks "is to transform their visitors in potential buyers," according to IDATE.

The top products sold on the Internet are tickets, travel, stereo equipment, home appliances and cultural goods such as books, CDs and videogames. Food sales are still lagging far behind but the sector "enjoys considerable growth potential," according to IDATE.

In fact, if in France, online supermarket purchases concern only 3% of Internet users, in Britain - the leading and trend-setting market - the figure already reaches 16%. Online grocery shopping is also considered by many as one means of contributing to a reduction in car trips, and hence, to cutting congestion and pollution in urban areas (see LinksDossier on urban mobility).

Another novelty is the creation of a tridimensional e-market on "Second Life", the virtual world created in 2003 and increasingly under the media spotlight. The market has the potential to become "massive", according to IDATE. "Whether it is a facet of media hype or a genuine major trend, it nevertheless remains the case that many of the Web's biggest players, including Google, Microsoft, Sun (Wonderland) and IBM (Innovate Quick) are starting to invest massively in 3D," concludes the report.