HP Shopping Village Sponsored Survey Finds Most Internet Users Who Intend to Buy Online Will Spend Up to One-Quarter of Their Holiday Dollars On the Web

Edge: Work-Group Computing Report, Oct 18, 1999

Sixty-four percent -- more than three out of five -- of Internet users who intend to buy online during the 1999 holiday season will spend up to one-quarter of their total gift budgets online, according to a survey conducted by GartnerGroup on behalf of HP Shopping Village (www.hpshopping.com), Hewlett-Packard Company's direct-to-consumer e-commerce Web site. The survey provides insights into Internet holiday-shopping trends and into Internet usage in technology purchasing decisions.

Another quarter of those who intend to buy online during the 1999 holiday season will buy up to 50 percent of their holiday purchases on the Web. At least one-fifth of Internet users plan to increase their e-commerce buying. These holiday shoppers will spend substantial sums online during this holiday season -- most plan to spend between $100 and $499. Forty-one percent of these shoppers will start online holiday shopping as early as this month.

"We expect consumer e-commerce sales worldwide to top $12.2 billion this holiday season," said Mark Snowden, senior analyst, Internet and E-commerce Group, GartnerGroup's Dataquest.

"The goal of this survey is to improve knowledge about consumer Internet buying trends for technology products and services, particularly in the context of the e-commerce `big picture' this holiday season," said Shen Li, general manager, HP Shopping Village.

The number of people with Internet access who don't shop online is decreasing dramatically. Of those who intend to purchase online during the 1999 holiday season, 48 percent will be new online holiday buyers. However, 58 percent of purchasers and 46 percent of non-purchasers report that they are no more likely to shop online for the holidays than any other time of year.

Consumers are not worried about potential Y2K problems or hassles when it comes to buying online this holiday season. Eighty-two percent said Y2K would not affect their online holiday-shopping practices.

Technology Purchasing Trends

The survey also revealed Internet purchasing behaviors for technology products and services. Almost four-fifths (78 percent) of online shoppers have purchased technology products or services via the Web.

Among those persons surveyed, the most popular computing products purchased online are as follows:

-- software (72 percent); -- computer peripherals (37 percent); -- computer accessories (34 percent); -- computer supplies (21 percent); -- computers (16 percent); and -- digital cameras (11 percent).

HP Shopping Village is a wholly owned subsidiary of HP and can be found online at www.hpshopping.com.

Methodology

GartnerGroup conducted a survey of 420 randomly selected households that use the Internet and that have purchased online or plan to purchase online in the future. Fifty-six percent of those contacted reported having made at least one purchase online. Survey participants were consumers over age 16 who use the Internet, decide on technology product or service purchases for their household, and who have either made at least one purchase online or who plan to purchase a technology product online in the next six months.

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services for business and home -- is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services.

HP plans to launch Agilent Technologies as an independent company by mid-calendar 2000. Agilent consists of HP's test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses, and has leading positions in multiple market segments.

HP has 123,500 employees worldwide and had total revenue of $47.1 billion in its 1998 fiscal year. Information about HP, its products and the company's Year 2000 program can be found on the World Wide Web at http://www.hp.com.