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Report: Germany to Emerge as Online Commerce Leader

Germany should become the leader in electronic commerce-based business in Europe in the new millennium according to new research from Jupiter Communications.

By 2002, Jupiter said it expects the German e-commerce market to generate revenues of $782 million, $674 million, $216 million, and $174 million in online air travel, book, music, and software sales, respectively.

Leading in all four categories, Germany is well ahead of France and the UK, the other big European commerce players, and offers the greatest potential for online sales growth, Jupiter said.

Since the European online market for these categories is significantly smaller than the corresponding U.S. markets--which Jupiter said are expected to reach $37.5 billion by 2002--company analysts recommend that firms focus their online efforts in European markets that have the greatest growth potential, such as Germany.

Jupiter projects that the total online shopping revenues from the four popular categories in Germany, France, and the UK will reach $3.3 billion in the next five years, up from 1997's $68 million.

Air travel will lead in overall revenues generating $1.5 billion, followed by book sales of $1 billion.

The research firm also predicts that the number of users shopping online by 2002 will increase to 35% in France, and 40% in both Germany and the UK. This is compared to 1997 numbers of only nine percent in France, 11% in Germany, and 14% in the UK, according to Jupiter.