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Ecommerce: Pacific Rim

A free survey of ecommerce prospects in the Pacific rim countries.

Introduction: Pacific Rim Countries

Japan, Australia, Taiwan and New Zealand would be the countries of rapid Internet use, predicted a Unesco survey in 1998, {1} and these countries are now growing markets for ecommerce. And many more people use mobile phones in Japan than in Europe or (in particular) America.
ecommerce prospects in pacific rim countries

36% of Hong Kong household had Internet access by 2000, and the number of online shoppers in Taiwan doubled over the 1999-2000 period. {2} Some 20m of Korea's 40m people were expected to be connected up by 2001, and the government is promoting ecommerce. {3} ComputerWorld Hong Kong believes that the Asia-Pacific Rim area will account for 32% of non-US online ad spending by 2004.{4} Of Oracle's 12,000 partners worldwide, 1500 are already located in the Pacific Rim, {5} with China having the potential for 400 million Internet users. {6} Ecommerce in China was indeed predicted at $221 million in 2000 and $11.7 billion by 2004. {4} Australia and New Zealand traditionally look outward, and ecommerce can provide goods not readily available at home.

Difficulties should not be underestimated, notably political control (Hong Kong), the preference to act through middlemen (Japan) and the plethora of languages.

Prospects 2003-4

The July 2002 Economist Information Unit {7} ranks preparedness for ecommerce in the Pacific Rim countries as follows (USA scoring 8.41)

Country
Index
Australia
8.30
Singapore
8.17
Hong Kong
8.13
New Zealand
7.67
Taiwan
7.26
Korea
7.11
Japan
6.86
Thailand
3.86
China
3.64
Philippines
3.72
Indonesia
3.29
Vietnam
2.96

While small and medium-sized companies in this region have been quick to adopt emails, they have been more wary of ecommerce, generally seeing websites as a means of advertising more than on online selling. Up to 75% will have their own website by the end of 2002, but 65% outsource their hosting. {9} China currently has 56.6 million Internet users, and some 10% have bought something online. {9} Internet usage (millions) is currently as follows: {9}

China
56.6
Japan
51.3
South Korea
27.8
Taiwan
11.6
Australia
10.6
Hong Kong
4.4
Singapore
2.3
New Zealand
2.0

The greatest potential may therefore lie with China, {10} but sites will have to be in Chinese, and offer goods and services acceptable to its communist government.

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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ecommerce prospects pacific rim
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