European e-commerce is forecast to be valued at $1,518 billion (£1,049 million) by 2005, a huge rise on the $154 billion of last year, according to a report released by IDC last week.
IDC’s Internet Commerce Market Model (ICMM) found that the effect of the current economic slowdown on B2C commerce has been countered by an increasing number of consumers and of buyers who are moving a larger share of their consumption online. During the last quarter of 2001, growth was spurred particularly by online Christmas shopping, as concurred by Jupiter Media Metrix (see
Europeans’ Use Of Retail Sites Jumped 40% In December).
The level of investment in B2B infrastructure has been reduced, says IDC, and in 2002 “ecommerce will be restricted from the supply side but definitely not from the demand side,” says the report.
“The investment slowdown in B2B applications and infrastructure in 2001 may erode capabilities put in place in recent years, and could limit online merchants’ ability to handle the expected increase in volume in 2002” says Carla Arend, from IDCÂ’s Internet Commerce Market Model.
