(Rochester, NY; January 6, 2003; PRNewswire) Wrapping up the 2002 online holiday shopping season, consumers spent nearly $13.7 billion, according to the eSpending Report from The Goldman Sachs Group, Inc., Harris Interactive, and Nielsen//NetRatings. Online spending jumped more than 24 percent year-over-year, up from $11 billion spent in 2001. Including travel, online spending grew nearly 22 percent to $15.7 billion.

Shoppers surveyed in the eSpending Report noted that more than 16 percent of their holiday budgets were slated for online purchases, as compared to just 14 percent during the 2001 season. The survey also showed spending patterns at two ends of the spectrum, with some shoppers spending earlier in the season and others procrastinating until the very last week before Christmas.

"With each holiday season, ecommerce becomes more of a mainstream activity, attracting a greater mass audience," said Lori Iventosch-James, director of ecommerce research, Harris Interactive. "This season, shoppers allotted more of their holiday budget to online spending. And this, combined with an increase in the total ecommerce population, helped drive year-over-year growth."

"Etailers pushing big discounts with free shipping in the beginning of November drove consumers to take advantage of the special savings early," added Iventosh-James. "We also saw an increase in purchases right before Christmas this year, indicating that shoppers felt more comfortable waiting until the last minute and paying for extra shipping charges to get their gifts on time."

Consumers spent more than $3.1 billion in books, music, and video/DVD, driving the category to the top spot during the holidays (see Table 1). Year-over-year, the category posted a 40 percent increase. Rising 20 percent since 2001, apparel recorded $2.7 million in sales, while consumers spent nearly $2 billion on travel.

The top two fastest growing categories for the season were toys and video games and consumer electronics, with shoppers increasing spending for both categories by more than 72 percent. With nearly $2 billion in sales, consumer electronics claimed the No. 4 ranking among shopping categories, while toys and games posted online spending of more than $1.8 billion.

                                   Table 1
  Top Shopping Categories During the 2002 Holiday Season, Ranked by Spending
                                 (11/2-12/27)
   
                                 Category Spending     Percent Growth
    Category                    Online (Millions)       2001 vs. 2002
    1. Books, Music, Video/DVD        3,113                  40.0%
    2. Apparel/Clothing               2,680                  20.3%
    3. Travel                         1,971                   5.8%
    4. Consumer electronics           1,960                  72.4%
    5. Toys/Video games               1,843                  72.5%
     Source: Goldman Sachs, Harris Interactive, and Nielsen//NetRatings
      

Online Shopping: Men vs. Women and Young vs. Old

Women comprised 51 percent of the total online shopping population during the 2002 holiday season, as compared to 49 percent of males. This shows a slight change from last season when the breakdown was 50/50.

"The gender breakdown between male and female Internet surfers mirrors the U.S. population, with women comprising a higher audience size over men," said Lisa Strand, director and chief analyst, Nielsen//NetRatings. "Throughout the year women tend to do more shopping online in general, but we see an even parity among the genders during the holidays, as men have an obligation to shop for gifts."

In addition, the eSpending Report reveals that younger shoppers ages 18-24 comprised seven percentage points more of the shopping population in 2002, as compared to 2001. Younger shoppers made up 17 percent of the total online shopping population this season, while other age groups showed no growth over the past year.

                                   Table 2
             Online Shopping Population By Age Group (11/2-12/27)
   
                        Percent Share of              Percent Share of
    Age Group       Shopping Population (2001)    Shopping Population (2002)
    18-24                    10%                             17%
    25-34                    23%                             21%
    35-44                    26%                             22%
    45-54                    22%                             21%
    55+                      19%                             19%
     Source: Goldman Sachs, Harris Interactive, and Nielsen//NetRatings