Consumer To Business e-commerce Presentation

Hardest Hit: Travel Sector

• Travel Sector Sales remain approximately 17% Below Pre-Attack Levels

Travel Sector News

• Priceline.com expected $341 million 2001 revenues - changed to $280-$300 million.
• Expedia.com-travel bookings had declined 60-65% as of 9/19/01.
• Travelocity-travel bookings had declined approximately 50% as of 9/19/01.

Analysts’ Predictions

• 2001 Online Travel Industry forecast lowered to 25% growth from 35-40% previous to attacks.
• 2002 forecast lowered to 15-20% growth from 25-30% previous to attacks.

Security of E-Commerce KPMG surveyed 1250 Large Companies In 12 Countries*

• When a security breach occurred 83% reported no legal action was pursued because:
• Inadequate Legal Remedies Available
• Loss Not Quantifiable
• No possibility of recovery
• Lack of evidence
• Other reasons

• * KPMG 2001 Global e.fr@ud Survey

Security of E-Commerce KPMG surveyed Large Companies In 12 Countries*

• Less than 35 % had security audits performed on their e-commerce systems
• Only 12% reported their web site bears a seal identifying their web site has passed a security audit.
• 88% reported the public perceives the “brick and mortar” businesses to be were more secure and less prone to fraud than e-commerce dot.com companies, yet only 9% reported a security breach had occurred in the last 12 month. (There is evidence these events are under reported.)
• National and Geographic Boundaries are non-existent in e-commerce - Security related risks affect businesses in all regions

• * KPMG 2001 Global e.fr@ud Survey

What has it Done for You Lately?

• Demonstrations
• Lands’ End / Virtual Model
• Staples
• E-bay

landsend.com myvirtualmodel.com

Lands’ End Summary

• Revenues $1.5 Billion
• Income $52.8 Million
• % Margin 3.30%
• Model Direct Merchant
• Employees 4,700
• $/Associate $319,150

staples.com

Staples Summary

• Revenues $10.674 Billion
• Income $60 Million
• % Margin .50%
• Model Traditional Merchant
• Employees 48,458
• $/Associate $361,836

ebay.com

ebay Summary

• Revenues $582.4 Million
• Income $84.7 Million
• % Margin 14.50%
• Model Auction
• Employees 1,927
• $/Associate $302,023

Quiz

• Country with Highest percentage of at-home internet use

• On-Line Industry Hardest hit by Attacks of September 11

• What/who is quixtar.com

• Philips Color Printer

• Questions

• Prize

• Washer & Dryer

• Dishwasher

Questions?

References

• ComScore Networks-Reston, VA (10/26/01)
• Internet.com (9/24/01 & 9/27/01)
• Goldman Sachs Analysts-Internetnews.com (9/19/01) Internet.com (9/25/01)
• Cyberatlas.internet.com (10/02/01)
• E-commerce.times (11/05/01)
• emarketer.com (5/28/00)
• emarketer.com (5/22/00)
• cyberatlas.internet.com (10/29/01)
• cyberatlas.internet.com (10/29/01)
• U.S. Department of Commerce News (8/30/01)
• Russell Reynolds Associates (10/27/01)
• www.stores.org