Reuters reported that despite the recent volatility of Web-related stocks, online retailing is expected to almost double in 2000 and top $61 billion in sales, thanks to the growing number of people who are logging on to the Web.

The online retail market is expected to grow 85 percent, surpassing $61 billion in revenues this year, including $6.8 billion in sales generated by non-traditional retailers, such as manufacturers and operators of person-to-person auctions, according to a joint survey by Web retail trade association Shop.org and research firm Boston Consulting Group.

By the end of 2000, a number of categories including computers, books, music and videos will have nearly met, or surpassed, 10 percent penetration, posing a threat to traditional retailers.

Total 1999 online consumer revenues grew 120% to $33.1 billion, while an additional $13.1 billion was spent in business-to-business transactions at retail Web sites in such categories as travel, office supplies, and computer software.

 Travel, computer hardware and software, financial brokerage and collectible categories remained strong throughout 1999, commanding 70% of the market.

 In terms of growth, revenues in the automotive category, which rocketed 2,300%, took off in 1999 as a number of retailers began to sell vehicles directly online.

 Other categories, like toys and health and beauty products, also grew at an exponential rate last year.

Transforming Tomorrow

In the book ‘Jamming’, author John Kao shares the importance of being aware. “Without awareness, the organization is flying blind. You need the big picture to thrive. That means allowing new input to penetrate a company’s boundaries, to challenge its institutional defenses and prejudices. Lack of this awareness leads to the worst kind of myopia: that of an organization lumbering into the future unable to see the pitfalls ahead. Awareness must be systematically cultivated. It often comes from the conceptual and cognitive divergence created when the right mix of people and resources are thrown together. Management must understand the principles of good corporate cooking.”

How does your company bring in the raw materials that lead to new levels of awareness? Do you have a structure in place to ‘cook’ with the diverse input of your employees and associates?

Published: May 16, 2000

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