Ireland’s Net Penetration Hits 38%, But Growth Is Slowing
Internet penetration in Ireland has now reached 38% of adults, or 1.1 million adult users, representing a 5% increase on the second quarter of 2001. Data from Amárach Consulting also forecast that penetration will reach 46% by Q2 2004, although the rate of growth is continuing to slow.
Slowing economy impacts e-commerce Preliminary research from Amárach indicates that Ireland’s slowing economy is having a negative effect on the growth of the country’s online commerce.
Following months of continued growth, the numbers buying online fell for the first time in a year. An estimated 188,000 users made a purchase in the last three months compared to 238,000 at the beginning of the year; in percentage terms this is a fall from 24% to 18% since the start of the year.
“The slowdown may reflect slower domestic economic conditions,” said Michael McLoughlin, a director at Amárach. “It may also reflect seasonality not evident in the offline market. The fact that travel services are a very significant component of online purchases may also be affecting the timing of online purchases.”
Travel services, specifically airline tickets, continue to account for the bulk of online purchases. Books, CDs and tickets for events also continue to be big online sellers.