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Online Buying In Canada Looks To Grow 20 Percent Per Year

Growth spurred in part by US marketers

NEW YORK, NY (August 9, 2005) A country one-ninth the population of the US, Canada has the essential underpinnings of a strong e-commerce society: high rates of PC penetration, Internet usage and broadband uptake. Yet in 2005, online purchasing remains minusculeless than one-thirtieth the amount spent by US consumers.
A new report from eMarketer, Canada E-Commerce, forecasts that Canadian consumers will spend $4.6 billion on products and services (including travel bookings) over the Internet in 2005, an increase of 23% over last year. Online buying in Canada will grow more than 20% per year over the next five years to a projected $8.3 billion by 2008.

Charter Cable Broadband Yet the growth comes on top of a very low starting point. Indeed, if not for US retailers and Internet companies looking north for growth, Canada's e-commerce projections would be nearly frozen.

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Internet Phone Service "Canada's retail e-commerce sector is caught in a demoralizing supply-demand cycle that is impeding market development and leaving it vulnerable to US competition," writes eMarketer senior analyst Jeffrey Grau, author of the report. "There is little to buy online so consumers don't make purchases electronically. And retailers, observing low demand, have no incentive to build retail Web sites."

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Internet Web Hosting EMarketer expects US retailers to make inroads, stimulating competition from Canadian rivals. The success of the online banking industry in Canada will prove a good model for domestic retailers looking to grow (and stave off US competition.) However, Canada may never widely adopt Internet shopping. It is a highly urban society and its cities, widely separated from each other (and divided to an extent by language issues), are distinct entities. Canadians don't much like catalog shopping; perhaps online shopping will be no more popular in the end.

Also, with a home wireless network, if you are using a laptop, and always be online and enjoying the blazing fast speeds of high speed Internet broadband.

Comcast Cable Broadband Key questions and issues include:
How does Canada's e-commerce infrastructure compare with that of other advanced industrial nations?
How large is Canada's retail e-commerce segment?
What is the market potential?
What is holding Canada's online retail market back?
Why do Canadians shop onlinebut not buy?
What is the single most-important thing Canada's retail e-commerce sector must do?
And much more

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Time Warner Cable Broadband Canada E-Commerce Report aggregates the latest data from leading researchers- Canadian e-Business Initiative, ComScore Media Metrix, Ipsos-Reid, J.C. Williams Group, Statistics Canada, TNS Canadian Facts and otherswith eMarketer's objective, unbiased analysis to give you the up-to-date information you need to make well-informed business decisions in this vast, complex but opportunity-filled market. For more information on purchasing a copy of Canada E-Commerce Report, visit eMarketer.

But sales of pet supplies, cosmetics and fragrances will increase faster than other categories at growth rates of over 30 percent, the report found. Last year, online sales rose 25 percent to $176.4 billion, with 28 percent growth in online purchases excluding travel. Total Internet sales in 2004 and 2003 reached $141.4 billion and $114.1 billion, respectively, Silverman said. "I think we're still looking for the next several years (for) growth over 20 percent per year, " he said, adding that growth closer to 30 percent was probably not sustainable.

Verizon Broadband Dsl About eMarketer
eMarketer is "the First Place to Look" for market research information related to e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 1,700 sources and brings it together in one place. This research is presented in analyst reports and the "eStat Database" the most comprehensive compilation of up-to-date e-business and online marketing statistics in the world.

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