Broadband driving up sales of consumer electronics, study says
As e-retailers consider what will drive up online sales, they should take a hard look at the impact on consumers of the fast growth in broadband Internet access in households, Forrester Research says. It notes the impact will be greatest on research-intensive products like consumer electronics and computer hardware and software.
But while broadband is making it easier for consumers to research products and, therefore, more likely to follow with a purchase, broadband will also raise the stakes for retailers to provide a fast and easy shopping experience, Forrester says.
"Retailers need to become just as smart and fast as these high-spending high-speed shoppers," Forrester analyst Carrie Johnson says. "Retailers must prevent fast-moving shoppers from getting away."
20% of consumers who signed up for broadband in the past year say they`ve increased the amount of money they spend online since acquiring high-speed web access, Forrester says. It adds that, for consumers who have had broadband for two or three years, the percentage who say they`ve increased online spending is 48%.
Forrester adds that, by raising consumers` expectations in online shopping experiences, more retailers will be pressed to offer more high-end services such as live-chart customer service and the ability to check online to see if a desired product is available in a local store. Forrester notes that only 13% of the top 100 retailers currently let consumers check in-store product availability online.
Many consumers now take advantage of broadband access at their workplaces, resulting in a surge of online purchases made 2-5 p.m., Wed.-Thurs., Forrester says. But the growth of household broadband will require retailers to alter their online marketing efforts to accommodate changing shopping patterns, it says.
Among other products most impacted by broadband include digital media products, because high-speed web access makes it easier to test samples befor making a purchase, Forrester says. It notes that one product category not expected to be impacted by broadband is office products.
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