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F

research report

 

1999 Online Toy Market To Increase Sixfold Over Last Year

eToys Scores No. 1 Ranking In Gomez Advisors' First Internet Toy Scorecard

LINCOLN, Mass.--(BUSINESS WIRE)--Sept. 16, 1999--Gomez Advisors, a leading provider of Internet research and analysis, Thursday unveiled the first Internet Toy Scorecard.

Online toy giant eToys (Nasdaq:ETYS) topped the Scorecard, followed by Amazon.com (Nasdaq:AMZN), KB Kids.com (NYSE:CNS), Smarterkids.com and ToySmart.com.

According to Gomez Advisors Senior Analyst Liz Leonard: ``As the critical holiday season approaches, online toys in 1999 will be what online books were in 1997. We expect the market to take off this holiday season as more and more shoppers turn to the Internet, particularly for products that are commodities -- like toys. Why would shoppers fight holiday lines and chaos in crowded toy stores when they can get exactly what they want -- at a low price -- on the Internet?''

Educational toys are the fastest-growing segment of the industry, with sales increasing 12 percent in 1998. Leonard noted that online toy retailers are responding by marketing these products and offering comprehensive information to drive sales.

``Online toy stores have seen the potential of the educational market, and they have embraced it heartily. This has not been the case with many bricks-and-mortar stores,'' she said.

The online toy market is poised to experience tremendous growth, with revenues rising from $43 million in 1998 to what Gomez Advisors estimates will be $230 million this year. By the year 2002, online toy sales will be a $1.6 billion industry.

``Clearly,'' Leonard said, ``the opportunities in the market are enormous, and the leading online players are being extremely aggressive and creative in their attempts to capture customers.''

eToys topped the Gomez Scorecard because, according to Leonard, ``Convenience and price are the name of the game in online toy sales, and eToys is the hands-down winner in both of these categories.

``Their customer profile settings, 'wish lists,' gift registry, breadth of products and lowest-price guarantee set them apart from their competition. In addition, the eToys site is well organized, easy to use and offers products for everyone from infants to adults,'' she concluded.

Of the top five online toy retailers on the Gomez Advisors Scorecard, only one -- KB Kids.com -- is affiliated with a bricks-and-mortar retailer (KB Kids.com is a division of KB Toys).

As Leonard noted: ``Many of the dominant bricks-and-mortar toy companies have been reluctant to embrace the Internet in a substantive way, and they will pay a high price for their hesitation. The convenience factor is a big draw for busy working parents who know what toys they want and can research other products online.

``Why fight traffic and wait in lines at the store when the online toy sites are making it so easy and affordable to buy via the Web?'' Leonard concluded.

About Gomez Advisors Inc.

Gomez.com, at www.gomez.com, is an online leader in providing consumers with the latest e-commerce information and tools that promote informed online purchasing decisions. The Gomez.com site has grown into a premier online hub where consumers can evaluate online service and product providers through nationally recognized Internet Scorecards.

These Scorecards rank the performance and quality of online service offerings for selected industries including: airlines, apparel, auctions, autos, banks, booksellers, brokers, drugstores, furniture, grocery services, insurance, music, pet supplies, sporting goods, toys, travel and videos.

GomezPro is the professional services division of Gomez Advisors and features foremost industry experts offering detailed, proprietary research, tools and analysis for specific e-commerce industries. GomezPro provides analysis and projections of e-commerce trends, competitive analysis and information on consumer behavior for companies that want to attract and retain Internet customers.

NOTE TO EDITORS: Gomez.com, Gomez Advisors, Internet Toy Scorecard and GomezPro are trademarks of Gomez Advisors Inc. All other products and brand names are trademarks or registered trademarks of their respective owners.


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