To: Paul Jones 
Cc: "TOM VASSOS (M.B.A., B.E.S.)" ,
        online-news@marketplace.com
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(1) Given that Web, fundamentally, is about one year old (I say this
because we did a program on the Internet in 5/94, and when we were
planning it in 3/94, it was decided that because people are interested in
"this Mosaic thing" that we should include it -- even though it wasn't on
our original list of topics -- interest in the WWW skyrocketed around that
point, in May), and (2) that the technology for secured credit card
transactions or digital cash transactions aren't widely distributed or
with standards in place, necessarily, why should anyone be surprised that
no one is buying much on the Web? 

Now, if you get the same answer in five years, that's another story.  

When I was writing a paper on thinking about the electronic marketplace
for the viewer guidebook for our satellite-delivered videoconference
series called "Capitalizing on the Internet" I learned that much of
electronic commerce transactions occur on the online services at present
(Compuserve, Prodigy, etc.) which offer secured transactions for one, and
a "catchment" arena (or funnel) so to speak for customers.

According to a conversation I had with a Simba analyst, there is about
$100 million in sales at present.  As much as 1/2 is done by PC Flowers. 
As I pointed out in my paper, 80% of catalog transactions (most akin to
the Internet as a marketing channel) are conducted by women, while
probably 80% of Internet users are men.  Men are accustomed to buying
flowers over the phone, so it's of no surprise to me that this is a poular
computer-based purchase.

Therefore, at present, products that are in synchronization with the
reality of the Internet's demographics are most likely to be sold
successfully today.

Why anyway should you be surprised that students aren't buying stuff? 
When I was a student I bought records, clothes, magazines, food, tuition,
and housing, concert tickets, and a limited amount of alcohol (I don't
drink much) -- are these items that you expect to be widely purchased on
the Internet right now?

Richard Layman, Mgr., Business Development, and Research Producer
Computer Television Network, 825 6th St. NE, Washington, DC 20002
(202)544-5722 - (202)543-6730 (fax) - rlayman@capaccess.org
http://www.phoenix.net/~ctn  (... I know, it needs work)



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