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US digital commerce topped $1 trillion for the first time in 2022
The record-breaking year saw 21% growth over 2021, according to Comscore.
Digital commerce crossed a key milestone in 2022, according to a new report.
The news: U.S. spend on digital commerce exceeded $1 trillion for the first time in 2022, according to a new report from media measurement firm Comscore. The record-breaking year saw 21% year-over-year growth, according to the 2023 State of Digital Commerce Report. The report measured spending across desktop and mobile devices.
Forecasts come true: This appears to confirm projections from a variety of analysts that ecommerce would reach $1 trillion in 2022.
Pull-forward sticks? The new data also adds evidence that ecommerce continues to have an upward growth trajectory, even as 2022 saw a pullback from the runaway growth of the two peak-pandemic years.
It shows there remains a chance that some of the pandemic gains may also prove to be sticky. Digital commerce was at $705.4 billion during the pandemic’s first year of 2020. A year later, it reached $904.3 billion. Now, it crossed the trillion-dollar mark.
“That level of growth previously took four years to achieve. Consumers are clearly doubling down on what works best for them--seamless, convenient, online purchasing across many different verticals and product types,” said Comscore’s Ian Essling, senior director of survey insights at Comscore, in a statement.
Mobile rising: Mobile phones are continuing to drive growth of digital commerce. During the key holiday period of Q4, dollars spent on mobile devices grew 26%, while desktop grew 14%. Now, mobile’s share of commerce is mobile’s share of total digital commerce is approaching 40%.
More key stats:
- Holiday growth: Online retail spending during the two months of the 2022 holiday season crossed $230 billion. This represented growth of 20% year-over-year.
- The top spending categories were online grocery and apparel. By category, there was $219 billion spent on grocery, baby, pet items. Further, $175 billion was spent on apparel and accessories. Another $117 billion was spent on computers and peripherals.
- The top growing digital commerce categories year-over-year were event tickets (75%), digital content (60%) and apparel and accessories (37%).
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Kellogg's takes inspiration from employees, Latin in snacks rebrand
Kellanova is now the parent of Pringles, Cheez-Its and Pop Tarts.
Kellogg Company's snacks business is now Kellanova. Here are a few finer points about how the forthcoming parent of Cheez-Its and and Pop-Tarts arrived at the new name.
Last year, Kellogg announced plans to split its business into multiple companies.
Now, one company will have North American cereals like Frosted Flakes, Froot Loops and Rice Krispies under the WK Kellogg Co banner.
Another will have snacks like Pringles, North American frozen foods such as Eggo and plant-based brands like MorningStar Farms.
This week, Kellogg announced that the snacks business has a new name: Kellanova.
Here are the strategies that Kellogg employed that led to this name:
- Ask the employees: Kellogg Company asked employees for input on the name, and received 4,000 suggestions from 1,000 employees.
- Listen to the results: 20% of the employees suggested a variation of the W.K. Kellogg name, while other employees suggested that the name include "nova."
- Go to the root: "Nova" comes from the Latin word for new. CEO Steve Cahillane said it "signals our ambition to continuously evolve as an innovative, next generation, global snacking powerhouse."
As The Wall Street Journal reports, this is just the latest new company name to take a Latin root in recent years, as Kellanova joins GE Vernova, Mondelez and Altria. It's also among a number of spinouts being completed by corporations, joining GSK spinoff Haleon, J&J's Kenvue and a forthcoming company that will spin out of 3M.
Even with a name that emphasizes moving forward, Kellanova is keeping one element that is familiar: The logo still has the iconic cursive K. It will even get the boldly simple stock ticker symbol "K" to go along with it.
Even the WK Kellogg Co is combining the past and future. The company is seeking to position itself as a "117-year-old startup," even as it draws on the name and signature of the Kellogg's founder. There's even a more subtle hint about an unwritten chapter: The "Co" doesn't have a period.
To get to the future, you need to bring along a bit of the past.