4.1 Market Growth
According to the findings from the 360 Youth/Harris Interactive College Explorer Study estimated the U.S. college market will spend nearly $200 billion dollars a year.
University Bookstores
The National Association of College Stores estimated U.S./Canadian university bookstore sales to be $11.12 billion for the 2001-2002 academic year and online textbooks sales to be an estimated $1.8 billion. University bookstores sell a variety of items, ranging from textbooks to toothpaste. The following table display the estimate of average product sales in the entire university bookstore market, from largest to smallest segments[1].
Course materials
|
70.67%
|
$7.858 billion
|
General/trade books
|
3.40%
|
$.378 billion
|
Student supplies
|
5.49%
|
$.611 billion
|
Computer products
|
7.63%
|
$.849 billion
|
Insignia merchandise
|
7.85%
|
$.872 billion
|
Other merchandise
|
4.96%
|
$.552 billion
|
Total
|
100%
|
$11.12 billion
|
Textbooks
The total textbook/course materials market is estimated to be $7.8 billion based on sales data for the 2001-2002 academic year. The textbook market is made up of three segments - new texts, used texts, and custom-published materials(or course packs). The percent of total store sales and estimated market size of each segment is provided below.
New texts
|
54.71%
|
$6.1 billion
|
Used texts
|
14.86%
|
$1.6 billion
|
Course packs
|
1.10%
|
$0.1 billion
|
Total Course Materials
|
70.67%
|
$7.8 billion
|
Online Retail
Jupiter forecasts that online retail spending in the will grow by 28 percent in 2003 to $52 billion. The research company estimates that by 2007, online retail spending will reach $105 billion and account for five percent of all retail spending. Jupiter estimates that the online retail will grow at an average annual growth rate of 21 percent between 2002 and 2007.
[1] National Association of College Stores (2000-2001)
4.2 Market Trends
The follow statistics indicate that college students are receptive to the Internet channel for the products, services and content offered by the College Cafe. The following U.S. college student statistics were based on a report by the Student Monitor and the Harris Interactive Explorer Study.
99% of college students use the Internet
93% of college students use the Internet every month
72% of college students access the Internet at least daily
92% of college students own a computer
13% of college students plan on buying a computer in the next year
15% of college students indicated they are the first to buy a new tech gadget or device
Students average 9 hours per week online
Students average 9 hours per week watching TV
Students average 10 hours per week listening to the radio
According to the Harris Interactive Study, college students spend an average of $287 per month on discretionary items (which is defined as spending on anything other than tuition, room/board, rent/mortgage, books/school fees).
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