When B2C Sector Slows, Investors Can Look to B2B and Infrastructure
Page 1 of 1
Merrill Lynch recently warned of a pull-back in the business-to-consumer sector. The firm cited slowing growth in the seasonal growth drivers (percentage growth of new Internet users, total e-commerce dollars spent, and total advertising dollars spent).
It makes sense. The growth curves will flatten as we enter the summer months. During this time, less people go online, less people spend money online, and advertisers curb their spending. Senior analyst, Henry Blodget does, however, see promise in two Internet sectors...business-to-business e-commerce and Infrastructure.
Reporter@Large-Luke Fronefield, takes the same stance. Reasoning?
B2B e-commerce is expected to grow to a $1.3 trillion market in the U.S. alone by 2003. Within the same time period, B2C e-commerce will be worth roughly 108 billion, or 10 times less. A premium is placed on B2B because of its market size, high barriers-to-entry, the eyeball factor and its inherent network effect.
The following analyses should be helpful for investors, looking to tap into these lucrative sectors: Net Value, A Wake Up Call for Investors, Future Synergistic Benefits: Where Clicks and Mortar Meet, B2B: The Bigger Wave and The B2B Ladder Approach.