Overseas E-Commerce to Equal Half of Global Spending By 2003

According to researchers International Data
Corp.
, almost 60 percent of the worldwide online audience comes
from outside the U.S. and that population will generate nearly 46 percent
of global e-com spending by 2003, up from 1998 levels of just 26 percent.

The IDC report finds that e-commerce is especially strong in Western
Europe. E-commerce spending in
the area is predicted to grow at a compound annual growth rate of 138
percent from $5.6 billion in 1998 to a whopping $430 billion by 2003.

“In Western Europe, the Internet is quickly moving from a technophile
phenomenon to a tool for the entire population,” said Anna Giraldo, an IDC
senior analyst.

“The increased interest in the Internet along with the adoption of the
Euro, a single common currency across the region, will help drive e-commerce
sales,” Giraldo said.

E-commerce is also expected to surge in the Asia/Pacific region, including
Japan, said IDC. Net users in that area will almost quadruple, from 21
million in 1998 to over 81 million by 2003. During that time frame, e-com
spending should soar from $2.7 billion to $72 billion.

“Companies that sell on the Web will face technical, logistical, and
organizational challenges as they try to develop a global Internet strategy
that incorporates multilingual ecommerce sites,” Giraldo said.

“It might sound contradictory, but a successful global strategy will
involve thinking locally in each of the
individual markets. Internet users, especially in Western Europe, will be
more trusting of national Web sites than international ones.”

News Around the Web