E-commerce market in JapanPopulation of Internet users from home & mobile(10 Thousands)500045004000350030002500200015001000500019001100240021003000 310039003500430039002000 2001 2002 2003 2004 200545004300HomeMobileSource: Nomura Research Institute
E-commerce market in JapanB2C market size & segmentationAutomobile23.4%Estate22.0%Entertainment7.3%Travel8.0%PC appliance10.0%Finance4.2%Foodstuffs7.3%Automobile14.2%Clothing8.2%Estate8.7%Entertainment6.9%Travel14.6%Otherservices15.8%B2C market size1,484,000 Million JPY in 2001B2C market size16,297,000 Million JPY in 2006Source: ASCII Corporation
Process of comparisonMarket Readiness•Business•Network•Host & PCs•Main telephone linesand Mobile cellular•Broadband•Internet UsersEC Market Status•Market Size•B2B•B2C•Online Products & Services•Payment system•Existing Barriers•Some Considerations
Market Readiness Business• Six categories in the methodology– Connectivity– Business environment– E-commerce consumer & business adoption– Legal & regulatory environment– Supporting e-services– Social & cultural infrastructure• Four groups of e-readiness rankings (2001)– E-business leaders– E-business contenders– E-business followers– E-business laggards
Market Readiness BusinessE-readiness ranking (of 60) Country & Area E-readiness score (of 10)1 US 8.73E-businessLeadersE-businessContendersE-businessFollowersE-businessLaggards2 Australia 8.293 UK 8.1071314182125263133394245464748495460SingaporeHongKongIrelandJapanSouth KoreaPortugalGreeceArgentinaMalaysiaPhilippinesRussiaIndiaThailandVenezuelaBulgariaChinaIndonesiaPakistan7.877.457.287.186.976.215.855.014.833.983.843.793.753.623.383.363.162.66Source: The EIU e-business forum
Market Readiness NetworkCountrySouth KoreaChinaJapanWorldHosts(Jan, 2001)397,80970,3914,640,863109,574,429Growth(1996-2001)13.632.817.211.6Change of Internet -hostsHosts/per 1,000 people(Jan, 2001)188.8.131.528.0CountryChinaJapanKoreaAsiaWorldTotal (k)25,00044,40012,000117,093495,366Estimated PCs (2001)Per 100 people1.9334.8725.143.318.42Source: ISC (www.isc.org), ITU (www.itu.int)
Market Readiness NetworkCountryChinaJapanKoreaAsiaWorldMain telephonelines (k)179,034.076,000.022,724.7391,179.01,046,087.6CAGR(%)(1995-2001)28.03.43.413.67.2Main telephonelines per 100 people13.8159.6947.6010.8517.21CAGR (%)(1995-2001)184.108.40.2062.15.8CountryChinaJapanKoreaAsiaWorldCellular mobile subscribers2001(k) CAGR(95-01) Per 100 people144,812.0 84.9 11.1774,819.2 36.2 58.7629,045.6 61.4 60.84336,614.4 56.3 9.33946,297.4 47.8 15.57Main telephone lines & Mobile cellular (2001)As % of totaltelephone subscribers44.749.656.146.347.5Source: ITU (www.itu.int)
Market Readiness Network• Korea– More than 60% of Korea’s households are utilizing broadband Internet.– DSL, Cable modems, Wireless services, ADSLs• Japan– Number of subscribers for broadband services has exceeded 2million.– Wireless services, Cable Internet, DSL, Fiber Optics-based services• China– By 2005 China will have 500 million phone users & 100 million internetusers, including 20-25 million broadband users– Ethernet to the home, DSL, cable modems and LMDSSource: The Korea Times, Ministry of Public Management, Home Affairs, Posts&Telecommunications, EE Times
Market Readiness Network• In Japan & Korea– Higher percentage of population who have useddifferent access technologies• In China– Noticeable growth rate of items with regard to networkreadiness
Market Readiness Internet UsersNumbers(million) YearSource: CNNIC, Kiko-Net, KRNIC.
Market Readiness Internet UsersCountryChinaJapanKoreaAsiaWorldUsers (k)(2001)33,700.057,900.024,380.0157,778.5500,074.3Users Per 10,000 people(2001)260.00 (2.6%)4,547.10 (45.5%)5,106.83 (51.1%)437.49 (4.4%)823.24 (8.2%)2.6% 45.5% 51.1%ChinaJapanKoreaSource: ITU (www.itu.int)
EC Market Status Market Size (Asia) eMarketer Forrester Research Goldman SachsComparative Estimates: B2B e-commerce Revenues in Asia, 2000-2004 (billion $)Source: eMarketer
EC Market Status Market Size(Asia)16%North AmericaEuropeAfrica/Middle EastAsia/PacificLatin America200015.3%200114.4%200212.9%10.8%20032004B2B e-commerce by region, (in billions) (As a% of Worldwide B2B e-commerce, 2000-2004)Source: eMarketer, “The eAisa Report 2001”, Feb, 2001
EC Market Status Market Size(Asia)• Climbing absolute amount of B2B e-commercerevenues in Asia• Slightly reduced share in worldwide B2B e-commercemarket
EC Market Status Market Size120001000047.17157.251,200,000.001,000,000.00134,682.608000800,000.0060004000200009290113902000 2001ChinaB2BB2C450040003500300025002000150010001074.823671385.63090600,000.00400,000.00200,000.000.008,421.58286448Japan10558082001 2006B2BB2C50002000 2001KoreaB2B B2CSource: CNN.com, ASCII Corporation, Korea Information Society Department Institute. (Unit: Million$)
EC Market Status Market Size (2001) Million$Source: CCID Consulting Co., METI, Korea Information Society Department Institute.
EC Market Status Online Products & Services19%58%books & magazines computer appliancephotographic equipmentcommunication appliance33.70%10.50%AV equipmentclothingsports equipmentpresent deliveryticket orderingothersbookshousehold itemsleisure goods/hobbyCDs/music videosaccessoriestelecommunication productsaudio equipmentfurniturecar accessoriesliving & housingfamily electrical appliancemedical care servicesfinancial & insurance serviceseducational servicesProducts /services that users had purchased in China (multiple choice)Recently online purchased items in Koreabooks/music entertainment travelcomputer hardware/accessoriescosmeticshome applianceschildren goodsclothesgifts/ticketsfoodcomputer softwareflowers23.40%PC appliance other services financeother products estate automobilefurniture & sundry goods foodstuffs giftsclothing22.00%B2C segmentation in Japan (2001)Source: CNNIC, ASCII Corporation, Korea National Statistical Office.
EC Market Status Payment Systemonlinetransferscredit cardse-moneyothersPayment methods in Korea (2000-2001)Payment methods in China (2001)cash & carryonline paymentpost officestransferbank transferothersotherspayment specified by own providercharged directly to the bankpayment via convenience storesbank transferpostal transfercash on deliverycredit cardPayment methods in Japan (2001)Source: CNNIC, Kiko-Net, Korea Internet White Paper
EC Market Status Payment System• Diversification of payment methods in Japan• Diverse payment methods are being introduced inKorea• Inconvenient payment is one of primary obstaclesof online purchase in China
Existing barriers in e-commerce (Asia)Cannot see & touchbefore buyingConnectionspeedNo internationaldeliveryNo good navigationon websiteSecurityUnattractivepriceCannot find thewanted goodsDelivery istime wastingSource: Far Eastern Economic Review November 23,2000
Existing barriers in e-commerce•In Japan. EC and Internet related companies have little English notation•EC of Japan does not have the strong consciousness to a transnational market.•In Korea. Compared with B2C, B2B is not so active.•Many bills of draft•Rebate system•Strong human relationships within companiesThese are conflicting with high transparency of B2B.•In China (Primary obstacles of online purchase)•Security 31%•Inconvenient payment 11.8%•Quality, after service & credit of producer 30.2%•Delivery is time wasting & channel is not expedite 13.9%•Unattractive price 6.3%•Unreliable information 6.3%•Others 0.5%Source: CNNIC, The Electronic Times2001
Conclusion• Rising Asia e-commerce estimates & smaller share inthe worldwide e-commerce pie• Optimistic picture & Existing barriers of e-commercedevelopment• Japan - who leads the Asian e-commerce raceKorea - who is a potent e-commerce competitorChina - who experiences the fastest growth
Future work• Common fields to make comparisons & conclusion of e-commerce in the different countries are expected.• There should be more elaborate & systematic frameworkof comparison applicable to these countries in Asia.• More channels of information sources are needed tofurther research.
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