Santa may be more wired than ever, but many consumers remain wary.

Online retail sales this holiday season will reach $27 billion, a 23 percent increase over last year, according to a new study from Forrester Research.

Almost one-fifth of the nearly 4,000 consumers surveyed say that the Internet will be the place where they shop the most during the holidays.

However, many say they prefer not to buy online altogether because of the prospect of dealing with returns.

In general, consumers stated that they are pessimistic about their overall online retail holiday spending, but Forrester believes consumers understate spending expectations. The survey asked about spending plans in 10 categories and found that consumers expect to spend more on a few core categories 13 percent say they will spend more on toys this year and 10 percent will spend more on DVDs and videos.

Part of the overall pessimism toward online shopping is the result of concerns over service. Fifteen percent of consumers said they received orders late last year. Returns are also a sore spot with half of consumers finding the process of returning items to be a hassle and 27 percent say they prefer not to buy online altogether due to return concerns.

“Online commerce executives must recognize that everything consumers experience after they reach a confirmation page is just as important as everything that happens prior,” said Forrester Senior Analyst Sucharita Mulpuru.

The trend of consumers increasingly shopping online extends beyond the holidays. A recent five-year forecast from Forrester report projects that online retail will reach more than $270 billion and comprise nine percent of total retail sales by 2011. The analysts expect the greatest penetration in computer hardware, software and peripherals, baby products, and toys and video games.

Cyber Nanny


Today’s consumers don’t worry about keeping up with the Joneses; it’s more a case of keeping up with the Jetsons.

What household, for example, would want to be without a NetTansor robot?

The brainchild of Pasadena’s Evolution Robotics Inc. is distributed through Japanese toymaker Bandai Co. LTD. The household robot stands 12 inches high and has a three-wheel driving base, integrated videocamera, microphone and speaker. When connected to the Internet through a standard home wireless network, users can remotely access the NetTansor from any computer on the web.

Users can access NetTansor remotely from the Internet, drive it around their home to check on pets while away on vacation, or even create programs for NetTansor to run entirely on its own, such as having NetTansor patrol their house and automatically send pictures to their mobile phone based on what it sees. NetTansor can recognize and respond to what it sees, from everyday objects and images to even specific locations in the home. The company suggests, for example, that a parent can program NetTansor to recognize when it is in the kitchen and play a personal voice message if it sees a child with a box of cookies before dinner, or if the dog’s food dish is empty.

“We are very eager to see all of the applications our customers dream up,” said General Manager Yoshinori Haga at the Bandai Robot Laboratory.

Bandai will begin taking orders for the NetTansor robot kit for sale in Japan on Dec. 16. The complete kit will sell for roughly $415.

“The NetTansor is an excellent example of how fast the consumer robotics market is advancing,” said Paolo Pirjanian, Evolution Robotics chief executive.

Verizon’s Horizon


Sherman Oaks-based GoTV Networks Inc. should benefit from the recent deal between YouTube.com and Verizon Communications Inc.

YouTube.com, which was scooped up by Google last month, has partnered with Verizon to provide mobile phone customers nationwide with access to YouTube’s user-submitted videos. Verizon customers will be able to have access to the videos through Verizon’s Wireless V Cast video and music service, starting later in December.

Industry analysts believe that the entry of YouTube into the mobile phone arena will supply more momentum for the nation’s roughly 220 million phone users to look to their hand-helds for information and entertainment.

Small Bytes


Archion Technologies Inc., the Burbank-based storage facility that stores computerized TV, film and entertainment programming, has released next-generation Synergy HD. The new facility is certified for all versions of Avid Unity storage system, which Reuben Lima, Archion’s chief operating officer, said eliminates the need for mirroring of storage for protection. L.A.-based Juice Wireless Inc. has linked with America Online Inc. in a deal to launch the JuiceCaster, a mobile social media application that will connect users’ cell phones to online photo and video sharing sites. AOL and Juice are planning to launch the service in the United Kingdom in early 2007. L.A.’s Fandango Inc., a provider of online movie ticketing services, has promoted Rick Butler to chief operating officer and appointed Shane O’Neill as chief technical officer. Butler was most recently vice president of operations for the firm. O’Neill was the former technology officer and vice president at Time Warner Inc.’s Synapse Group.

Staff reporter Dan Cox can be reached at

[email protected]

or at (323) 549-5225, ext. 230.