As of June 2012, China had 538 million Internet users. Reports reveal that of that number, 194 million Internet users in the country shopped online. E-commerce has seen strong growth in China where, according to the Boston Consulting Group, online retail sales are projected to grow to $360 billion by 2015 from $121 billion in 2011. Another report shows that during the current year alone, online retail sales grew 53% in the country. Despite this growth, online sales account for a mere 2% of China’s total retail sales.
According to IAB’s H1 report for this year, Internet advertising in the U.S. grew 14% over the year to $17 billion. Internet advertising growth was driven by an improvement in mobile advertising, which grew 95% to $1.2 billion during the period. Digital video ads grew 18% to over $1 billion, and display ad revenues grew 33% to $5.6 billion. The report reveals that although bigger players are continuing to remain the larger contributor of advertising spending, spending by small businesses is picking up. Overall, retail advertisers accounted for 20% of the total ad spend.
Continuing with our theme of niche e-commerce, here is another interesting vendor, Fab.com. Fab.com is an online retailer of home design products offering to their members at big discounts.
A few years ago, I wrote about the emerging trend of niche e-commerce and the need for entrepreneurs in the space to internalize web 3.0 concepts to ensure a differentiated offering. Over the past few days, we have looked at several such niche providers within the online retail space. Another worth mentioning in the same segment is One Kings Lane.
A recent Forrester report, U.S. Online Retail Forecast, 2011 to 2016, estimates that online retail shopping in the country will grow 45% from $226 billion for the current year to $327 billion in 2016. Last year, the online retail industry in the U.S. was estimated to be worth $202 billion. Forrester estimates that the growth will come from an increase in the number of online shoppers and the average amount they spend. U.S. online consumers are projected to grow from 167 million this year to 192 million by 2016. The average amount spent by these consumers online is projected to grow from $1,207 this year to $1,738 by 2016.
The research group Interactive Media in Retail Group (IMRG) predicts that global business-to-consumer (B2C) e-commerce sales will be worth $1.25 trillion by next year. In 2011, global B2C e-commerce sales were estimated to have grown 20% over the year to $961 billion. Growth will be driven a continuous increase in the number of Internet users, which is predicted to rise from 2.2 billion by the end of last year to 3.5 billion by 2013. The U.S. is the largest e-commerce market worldwide, with growth predicted to continue at 10%-15% annually over the coming years.
A Forrester study estimates the enterprise social networks market to grow to $6.4 billion in 2016 from an estimated $600 million in 2010. McKinsey also estimates that the use of enterprise social network will grow at an annual rate of 42.4% over the period 2011 to 2016.
According to a report by Global Industry Analysts, Inc. the global recruitment software market is estimated to be worth $2 billion by 2018. Growth in the market is driven by increasing demand for cloud-based recruitment software and the evolution of solutions that help to increase efficiency to reduce employee turnover.
According to a report from researcher Ovum, enterprises are focusing on social networking within organizations as part of an effective enterprise collaboration strategy. IBM remains the market leader with revenues of more than $105.4 million in 2011. During the current year, Ovum projects the enterprise social networking market to be worth $500 million. The researcher estimates that at present, a mere 10% of organizations are deploying enterprise social networking solutions or services, suggesting a big market potential.
According to a recent performance analysis of IPOs this year, researchers found that the stocks of enterprise software and solution providers performed better than the stocks of several Internet companies. Facebook leads the disappointing wave of Internet IPOs, as its stock crashed soon after listing. But among enterprise IPOs, there are several strong performers. In the data studied, the analyst found that enterprise IPOs listed this year resulted in an average stock improvement of 95% by October 2012. Here is a quick review of automated network control solutions provider, Infoblox (NYSE:BLOX), which recently announced its first quarter results.