GartnerG2 Says by 2005 10 Percent of U.S. B2C E-Commerce will Be Done Without a PC
Online Purchases Through TV and Mobile Devices Will Total $22.9 Billion in 2005
San Jose, Calif., December 5, 2001 - The PC will continue to be the primary device used by U.S. consumers for making online purchases, but alternative devices will begin making inroads in e-commerce over the next several years. While virtually all (99.8 percent) of B2C e-commerce dollars will be spent via PC in 2001, GartnerG2, a research unit of Gartner, Inc. (NYSE: IT and ITB) expects that, by 2005, 10.1 percent of U.S. B2C e-commerce sales will be done through other devices.

"B2C e-commerce for products and services in the United States is projected to reach $61.8 billion in 2001 and grow to $227.7 billion in 2005," said Michael Cruz, senior analyst for GartnerG2. "In 2001, $61.7 billion of B2C e-commerce will be done through a PC, and online sales purchased through a TV will total a mere $107 million. In 2005, $204.8 billion will be done through a PC, $9.5 billion will be done through a mobile device and $13.4 billion will be done with a TV."

By 2005, 42 percent of U.S. consumers will use multiple platforms on a regular basis. While the PC will remain the dominant platform, interactive TV and mobile devices will be used primarily from location- or situation-specific buying.

"Mobile devices will be used primarily for purchasing access, for such things as public transportation and entertainment tickets, as well as time-sensitive or alert-driven purchases or location-specific purchases," said Mike McGuire, research director for GartnerG2. "Interactive TV will be most often used in responsive mode, in reaction to an advertisement or other stimulus during normal television viewing. Although, delayed rollouts of advanced Internet-capable set-top boxes will limit the opportunities for multi-platform authentication applications until approximately 2005."

GartnerG2 analysts said U.S. consumers will be willing to use any or all platforms, individually or in combination, as the occasion and opportunity allow. Since each e-commerce platform has different strengths and weaknesses, U.S. consumers will likely employ multiple devices, choosing and switching based on what works best, when and where in the increasingly interconnected telecommunications environment.

"Because of differences in capabilities and functionality, consumers will favor different platforms for different roles and at different times," said David Schehr, research director for GartnerG2. "Retailers, service companies (such as airlines) and the technology vendors supporting them must make strategic investments and development decisions that take full advantage of the range of existing opportunities. Most companies cannot afford to try every new e-commerce idea, so they must choose wisely to get the greatest payoff from their investments."

"Retailers need to help consumers use the channels synergistically - help them set up shopping lists on the PC then order via a mobile device. Real opportunities will exist for hybrid commerce, helping consumers use devices in combination," Schehr said. "Multinational vendors and retailers should use Europe as a proving ground for mobile and interactive TV initiatives. Europe is more mobile- and interactive TV-oriented, and less PC-focused, so it provides better near-term testing opportunities for these systems."

Additional information is available in the GartnerG2 report "The Three Faces of E-commerce: PC, Mobile, Interactive TV." The report examines the growth opportunities available for retailers with these various technology platforms.

GartnerG2 is a new research service from Gartner that helps business strategists guide and grow their businesses. For more information, visit www.gartnerg2.com.

Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,300 associates, including 1,200 research analysts and consultants in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com.

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