This PPT slide, part of the 103-slide Electronics Firm Retail Channel Strategy PowerPoint presentation, presents a detailed analysis of online purchases of consumer electronics (CE) products, highlighting their relatively minor role in total sales compared to traditional retail channels. Key statistics indicate that in 2000, online purchases accounted for less than 3% of total CE sales, which stood at $84.5 billion. The top 10 retailers dominated this market, generating $57 billion, which represents 66% of total sales. This concentration suggests that a small number of retailers hold significant market power, overshadowing online sales.

The slide also outlines consumer behavior trends. It notes that 58% of U.S. households were online by 2000, with projections suggesting this would rise to 74% by 2005. A significant portion of these online consumers, 56%, engaged in business-to-consumer (B2C) purchases, indicating a growing trend toward online shopping. However, despite this growth, the actual online sales figures remained modest, with total online sales reported at $27 billion in 1999 and projected to reach $45 billion in 2000.

Furthermore, the slide highlights consumer preferences for convenience and access, as well as a desire to avoid traditional retail hassles. Notably, 80% of consumers researched CE products online before making a purchase. Online spending on CE products was projected at $2.0 billion in 2001, increasing to $5.5 billion by 2004. The slide also mentions Amazon's role in this space, with $600 million in sales and 2,500 stock-keeping units (SKUs), illustrating the potential for growth in online channels. Overall, the data suggests that while online sales are growing, they still lag significantly behind traditional retail channels.

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