The IGN Data Hub - Apr 26, 2000

The Internet Keeps Growing and Growing and Growing

More people are surfing the Web and engaged in e-business than ever, according to a variety of recent studies:

• Brazil
  The fifth edition of Pesquisa Internet Brasil reports that while only half of Brazil's population even has telephones, the future of Internet growth is readily apparent. Already, nine percent of the population accesses the Internet, and another three percent would like to access it. "Anyone who operates in Brazil has immediate access to this huge potential market," the report said. Brazil boasts a population exceeding 160 million.

• Latin America
  Forrester Research predicts Latin American e-commerce will reach $82 billion by 2004. Of that, business to business transactions will probably account for 93 percent ($76 billion).

  "E-commerce in Latin America today faces significant challenges, but there are clear signs that the economic climate is dramatically improving," said Stuart Woodring, vice president, research for emerging Internet economies. "The combination of aggressive efforts to stabilize currencies with liberalized trade policies will make Latin America - especially Brazil and Argentina - fertile ground for the rapid adoption of global e-commerce."

  Holding back growth is a need for technological linkages, including phone lines, PCs, Internet hosts, and cell phones.
  www.forrester.com

• North America
  Global e-commerce levels will soon reach $6.9 trillion, predicts Forrester Research. North America will account for nearly $3.5 trillion of that amount from online business-to-business and business-to-consumer sales in 2004. Contributing to North American growth, says Forrester, are several factors, including favorable trade and monetary policies, an advanced technology infrastructure, and deep links to international supply chains and trading blocs.

• United States
  American small businesses are embracing the Internet, according to International Data Corp. Their research shows that by 1999, 52 percent of these companies were already accessing the Internet. They suggest that by 2003, the number will climb to over 70 percent.

  "Although more small businesses are experimenting with Web promotion of their products and services, the market is far from saturated, and there is still plenty of room to grow," explained IDC's Raymond Boggs. "Almost 13 percent of U.S. small businesses have yet to invest in a PC, never mind add Internet capability."
  www.idc.com

• Europe
  E-commerce in Europe, according to Forrester Research, should grow more than 100 percent annually through 2003. Forrester predicts Europe will have $1.5 trillion in online sales by 2004, making it a major contributor to the global Internet economy.

  Research director Dr. Therese Torris explained, "E-commerce in Europe benefits from a number of inherent strengths - a coherent regional trading bloc, a strong technology infrastructure, and deep connections to global supply chains. Despite these advantages, e-commerce will not develop in the same way or at the same rate across all countries. … To achieve its full potential, European companies must be prepared to take advantage of new e-commerce opportunities, wherever they are present."

• Asia-Pacific
  A combination of regional strengths, including local development efforts and tight links to international supply chains in several key industries, will buoy e-commerce in the Asia-Pacific region. As a result, e-commerce should top $6.9 trillion, estimates Forrester research.

  Despite these advantages, e-commerce is unlikely to develop uniformly across the region. Online trade requires public policy support, Forrester suggests, such as low barriers to trade, stable currencies, and flexible capital markets, as well as a technology infrastructure for the region to reach its full potential.

The Privacy Battle Rages On

Online consumers are not averse to revealing personal information, Cyber Dialogue researchers report. Instead, consumers are primarily concerned with how companies use the information collected. Based on in-depth interviews with more than 1,500 Internet users, the survey lists several key findings. Among them:

• 69 percent of Internet users have unknowingly signed up for e-mail distribution lists;
• more than 40 percent of users don't know or understand what cookies are or how they work;
• and more than 80 percent of users are willing to provide personal information such as name, age, education level, and more in exchange for customized content.

Another survey, conducted jointly by Ad.vantage, Inc. and Comcast@Home revealed that consumers have a strong loathing for what they perceive as an invasion of their online privacy. The most pertinent question was, "How do the issues of online privacy sit with you?" Their responses were:

• It's horrible - stay out of my business and my computer!
  Eighty-one percent of respondents agreed.
• It's not great, but I can understand why they do it.
  Eleven percent of respondents agreed.
• There are much worse invasions of privacy going on in life that I'm worried about.
  Five percent of respondents agreed.
• It's their right. I am accessing unprotected information and taking my chances.
  Three percent of respondents agreed.

General Trends and More

Live voice communications over the Internet should expand astronomically, according to researchers at International Data Corp. "Demand for Web talk capabilities is increasing from both Web sites and end users," explain IDC's Mark Winther. "Individuals want to use Web talk to communicate with their friends and families, and companies with e-commerce sites want to apply Web talk to improve poor customer service that is often caused by lack of human interaction."

Winther predicts that by 2004, users will spend more than 3 trillion minutes annually talking on the Web.

Dataquest reports that worldwide PC sales grew 15 percent for first quarter 2000. "The Asia/Pacific region continues to recover economically, and with it, demand for technology is strengthening," says a company analyst. "Growth in Korea was especially strong as a result of government initiatives to drive investment. Japan's growth was also related to these issues coupled with a traditional strength of the first quarter because of the end of the fiscal year. ... Latin America had a healthy quarter with the consumer segment performing well. Western Europe had a weak commercial market, but it had better performance in the home segment."
www.dataquest.com