On-line Traffic
Dot-com Collapse Fails to Boot Web-savvy Shoppers
The year 2000 was a year of dramatic growth in on-line retailing. By the end of the year, 123 million U.S. consumers were using the Internet, and 55 percent of them — 68 million people — had bought something on-line, according to Boston Consulting Group's report titled "The Next Chapter in Business-to-Business E-Commerce." To date, on-line consumer demand has been concentrated in smaller, discretionary categories — computer hardware, books, music and video, leisure travel, and toys. On-line penetration of the grocery, clothing, health, and beauty categories — the far larger categories for consumer necessities — is still minimal.
There are several reasons for this, reports BCG. The first on-line shoppers — well educated, relatively wealthy, and technologically sophisticated — had both the means and the inclination to buy discretionary items on-line. Consumers strongly resist change when it comes to shopping for necessities, the report concludes.
Client Focus
Three Answers Your Web Services Clients Now Demand
Consulting engagements inside the Web services area have continued to be hit hard by the economic slowdown, as consultants struggle to convince their clients to purchase their Web project offerings.
Consulting firms can leverage this trend by demonstrating quantifiable returns on investment, according to Kennedy Information Research Group's report, "e-Business Consulting: After the Shakeout." They should be prepared to answer the following for their clients: How much money and how many worker hours were saved? How much future profit will be realized? How much more efficient is the company in monetary figures?
Market Drivers
Always a Need for the Trusted Advisors
When the economy is in a growth period, consultants help their clients expand market share. When the economy slows, they help them operate more leanly. The last six months have seen a real flattening of the market and, with that, the prevalent trend toward cost-cutting and efficiency. E-business consultants can leverage this trend by re-evaluating the alignment of clients' e-strategy with core business strategy. Any e-business initiatives that are not directly tied to core business goals should be scaled back or eliminated.
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