Ecommerce: Other Countries
A survey of ecommerce prospects in other parts of the world.
Ecommerce in the Rest of the World
Prospects for ecommerce in the Third World are nil in the foreseeable
future: the great bulk of firms and individuals do not even possess
the hardware.
Other countries — e.g. South Africa, Israel, Russia —
with advanced economies and a history of Internet use certainly
offer prospects in the medium- to long-term, but currently exhibit
some or all of these problems:
-
expensive Internet access.
-
commerce traditionally conducted on more personal lines.
-
demand is for different products: local knowledge is essential.
-
English won't serve: some of the site must be in the national
languages.
-
addresses don't follow US standards.
-
tax and shipping are not covered by US or European rates.
-
credit cards are not widely used.
-
over-regulation by government and/or control of Internet
material.
-
fraud at unacceptable levels (up to 80%).
Apart from the occasional IDC and NUA reports, {1} few overall
surveys are readily available for this wide swathe of countries
— perhaps a reflection on prospects — and the picture
has to be put together from scattered Internet material.
South Africa's Internet population exceeds that of the rest of
Africa put together, but while a 1999 study of South African ecommerce
found a readiness to embrace new technologies, it also pointed
to the need for deregulation.{2} Nonetheless, though lacking cyberlaw
legislation, {3} South African online sales reached R 20 million
over the 2000 holiday season — encouraging, though but small
beside the $10.7 billion in the US over the same period. {4}
The 2001 Internet World Israel was only moderately attended,
with many exhibitors receiving more resumes than business cards.
{5} A 2001 survey has looked at the market for high-end integrated
software products in Turkey, {6} but the abstract doesn't disclose
findings.
Ecommerce growth has been slow generally in the Eastern Bloc.
{7} Appreciable and growing numbers of people use the Internet
in southeastern Europe, but ecommerce spending in Bulgaria will
increase only by 150% over the 2000-2004 period, an IDC report
predicted.{8}
Much of India belongs to the Third World, despite its own silicon
valley at Bangalore, but awareness of the benefits of B2B (and
to a lesser extent B2C) ecommerce is increasing.{9} Indeed, the
country recently introduced ecommerce legislation and realtime
card processing systems {10}.
Ecommerce has arrived in Russia, despite a dislike of credit
cards {11}, and some 500 shops were online in 2001. Only some
4% of Russians possess a credit card and 80% of online transactions
are in cash, through a variety of payment devices. {12} Legislation
was put in place some time ago, {13} and a large potential is
recognized.
Most countries (and particularly India) have their ecommerce
entrepreneurs offering site design and web hosting, but their
frequency and selling pitches are nothing like those in the US.
Ecommerce has a long way to go — as have the all-important
supporting services: credit card processing, fulfillment and shipping
— but opportunities for market position exist for companies
with patience, contacts and resources. The July 2002 Economist
Information Unit {14} ranked preparedness for ecommerce as follows
(USA scoring 8.41)
Country
|
Index
|
Israel
|
6.79
|
South Africa
|
5.45
|
Turkey
|
4.37
|
Bulgaria
|
4.25
|
Sri Lanka
|
4.05
|
India
|
4.02
|
Romania
|
4.00
|
Russia
|
3.93
|
Saudi Arabia
|
3.77
|
Egypt
|
3.76
|
Iran
|
3.20
|
Ukraine
|
3.05
|
Nigeria
|
2.97
|
Pakistan
|
2.78
|
Algeria
|
2.70
|
Kazakhstan
|
2.55
|
Azerbaijan
|
2.38
|
References and Sources
This page was written in 2003. To obtain a current survey, plus
references and information sources, please consider the e-book.
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