French E-Commerce Worth $50 Million

E-commerce in France is expected to generate revenue in excess of $50 million in 1998, according to research by the Benchmark Group.

The study estimates that by the end of this year, 10 percent of French Internet users will have shopped online, spending an average of $70 per transaction. NOP Research estimates there are 2.9 million Internet users in France.

Benchmark estimates that 500 commercial companies conduct business online in France. Travel sales generated the highest amount of revenue, over $23.6 million or 44.7 percent. The combination of computer hardware and software was responsible for $10 million or 19 percent. Book and music sales accounted for $5.7 million, or 11 percent of total sales.

These were followed by hotel reservations (6 percent), clothes (5.3 percent), and flowers (2.3 percent). Groceries were responsible for only 1.5 percent of online sales revenue.

As with the rest of the world, in France a small number of strong online brands were responsible for the majority of the revenue, the study found.