RealTime IT News

Two-Thirds of the B2B Marketplaces Can't Survive on Their Own?

[Berlin, GERMANY] Many of the numerous newly established B2B platforms in Germany will not survive, a study says. Two-thirds of the 80 marketplaces established by start-ups are not likely to be able to survive on their own, business consultants Boston Consulting stated yesterday in Munich. In the long run, they either have to link up with established companies or they will disappear.

Traditional, old economy companies are in the process of surpassing the new, hopeful ventures in the field of electronic business between companies (B2B). Of the roughly 130 virtual German marketplaces currently operating, only those will survive which can draw a transaction volume of at least Euro 1.5 million to their platforms. By 2003, according to Boston Consulting, there will only be room for between 60 and 100 virtual marketplaces established in Germany.

But the scope of transactions alone will not secure the virtual marketplaces' existence, they will also have to offer additional services. Functions such as logistics and the handling of payments are indispensable according to BCG. Since the established old economy companies already have such tools, they have an advantage in the long run. Pure start-ups without any notable presence in the real world only have a chance, if at all, in very splintered sectors in which they won't run up against individual dominant companies.

In three years, according to the study, 14 percent of the trade between businesses in Germany will be conducted electronically. For large companies with a turnover of Euro 5 billion and more, the volume will be 26 percent. The B2B volume will increase from its present level of Euro 177 billion to Euro 422 billion in 2003. For the study, 330 companies were surveyed.