Market researcher IDC claims online business-to-consumer spending is bucking international expectations by continuing to rise.
New Zealand business-to-consumer (B2C) growth is expected to increase from less than $1 million this year to $5.5 million by the year 2004.
Over $700 billion will be spent in B2C goods and services in the US alone by 2005 despite analysts declaring the market space all but dead.
"Despite its much maligned status in the internet stocks pantheon, business-to-consumer internet commerce is alive and well," says IDC, in a report released last week.
According to the researcher's New Zealand manager, Dinesh Kumar, B2C spending "is tracking along" in this country, with the number of unique users climbing from 1.4 million this year to 2.3 million by 2005. The dollar amount they spend online is also increasing from an average of only $0.69 a person to $0.88 each in 2002 and on to $2.39 in 2005. "The numbers are quite small but they're growing steadily."
The IDC report, "eWorld 2001 Survey", also says the collapse of internet stocks is "irrelevant" and that spending on IT is still increasing worldwide.
"Companies around the world will spend more on website infrastructure this year alone than they did in five years preparing for Y2K. Over the next four years the number of websites will double, e-commerce will increase by a factor of 10 and technology spend on web applications will escalate to four times what it was [in] the previous four years."