Catalog and Internet sales grow more quickly that retail, DMA finds
DON’T WORRY ABOUT PAPER CATALOGS. They’re doing fine.
Total catalog sales will reach $120 billion this year, an 8.9% increase over 2000 sales of $110.2 billion. In comparison, overall retail sales are projected to grow from $3.2 trillion in 2000 to $3.3 trillion in 2001, a 3.1% increase, according to a new study by the Direct Marketing Association.
And that’s just the start. Consumer catalog spending will jump from $67 billion this year to a projected $78 billion by 2006, according to the DMA. Business-to-business spending will hit $43 billion this year and increase to $50 billion in five years, the study found.
While Internet sales are slowing from triple-digit growth, the World Wide Web remains the fastest growing direct marketing medium. Sales generated on the Internet are expected to reach $37.1 billion this year, an increase of 32% over 2000 sales of $28 billion.
A separate study by the Direct Marketing Association found that the Internet could be credited for 13% of all catalog sales last year, a significant increase over 1999, when overall interactive media generated 9% of total catalog sales.
A shift in how catalog companies define themselves as retailers was also reported, with 95% of catalogers describing themselves as multichannel retailers, 53% identifying their companies as
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