Forrester claims that a pattern is emerging whereby net users who have received gifts ordered online go on to use the service themselves creating a ‘gift spiral’ and thus increased success for online retailers offering such services.
As a result of such activity, Forrester believes that the online gift market could be worth as much as $36 billion by 2005.
“Retailers must recognise,” explained Forrester analyst Carrie Johnson, “that gift giving is a continuous process, not a one-shot event. To benefit from this gift spiral, retailers must treat an online gift giver not as just another customer, but as a shopper with unique goals and needs. Retailers targeting gift givers must promote their on-time delivery records and downplay tools and themed gift areas like: “For the Dad who has it all.” ”
