Compiled by Vicky Nolan
Who, What and Where
Plenty of new information keeps rolling out about the Internet, including where the users are, which sites are the hottest, and much more.
Hong Kong has nearly two million Internet users, according to the South China Morning Post, meaning that roughly one in three Hong Kong residents have an Internet account. Hong Kong ISPs are reporting monthly increases of between 25,000 and 170,000 users since November, with the most
recent figures from February 2000.
An analyst from International Data Corp., however, disputes those numbers. "If one person registers three accounts, the providers would count that as three people instead of one," the analyst told SCMP. "But there is no question we will get to two million. It's just a matter of time. The Internet will become as prevalent as television."
www.idc.com
ActivMedia Research named Dell, Yahoo and Victoria's Secret as being among the top websites in revenues, visits and growth. Dell.com was the top revenue producer, with $5 billion in revenues generated. VictoriasSecret.com was named the most watched site after experiencing an 8,900 percent growth since its 1998 launch. Yahoo! had the most visits, counting 32 million unique site visitors.
The "Top 100 Consumer E-Commerce Websites" profiles the most lucrative websites broken down into 10 industry sectors. The research shows that success online will depend on success behind the scenes as companies compete for consumer loyalty. "Competition online is increasingly a race to run professional businesses that just happen to use a new communication tool, the Internet, as the primary marketing tool," explained research VP Harry Wolhander.
"It is rapidly becoming integrated into the world of traditional business as players from both ends converge in the middle. Online pure-plays are growing backstage businesses to fulfill and deliver on sales commitments. Traditional offline marketing leaders are growing adept at creating online sites or acquiring promising online startups to accomplish the same goal. From the other end, the Web pure-plays are building out, even as they merge, acquire and spin off components to create a rational business model," he
added.
www.activmediaresearch.com
Jupiter Research reports that loyalty programs alone won't keep customers coming to a website. Even though nearly 75 percent of Internet shoppers participate in some kind of loyalty program, less than a fourth say the programs were an important part of their decision to buy.
Jupiter's survey of 1,200 U.S. online shoppers found that only 22 percent of the respondents were persuaded to buy because of a loyalty program. Instead, 40 percent valued easy returns, while 37 percent valued customer service, and another 37 percent put product selection ahead of loyalty programs.
"Loyalty is not only about loyalty programs, but also about rather unique and differentiated products or levels of service," explained a Jupiter analyst. "Consumers return to sites where they receive tangible value for being loyal, whether the value is priority service, personalized offers, or email updates. Commerce players must create an online experience for consumers in which their customers see transacting on the Internet as a benefit, not a deficit."
www.jup.com
The Industry Standard has been busy rating Internet stuff, too, in their second annual Net 21. The publication lists 21 individuals that they felt have done the most to shape the Internet during the past year, including categories for "Most Influential International Executive", "Most Important Government Policy Maker" and "Most Influential Software Developer."
"It's true that the Internet economy is about numbers--stock prices, net worth, profits and losses," explained IS editor-in-chief Jonathan Weber, "but it's also about people. In the Net 21, we focus on the achievements, innovations and influential work of individuals. The Net 21 is our account of the people who have created the businesses, technologies and policies that drive the Internet."
www.thestandard.com
Best Business Practices
E-commerce is shifting toward a new way of doing business, according to Forrester Research. The new business structure, which Forrester calls "eBusiness Networks", will allow firms to form relationships quickly, share information broadly, and create value by making assets fully available online. To succeed, however, companies will need to plug in their partners and focus on their key strengths. "Companies have transplanted business models to the Net to get a piece of the eCommerce pie, but the Net isn't just a new channel - it's a different environment with different natural laws," said the company's research director. "In the face of those deep differences, firms that adapt will thrive by participating in eBusiness Networks."
www.forrester.com
Forrester also predicts that customized pricing will temper online price competition. "The bottom line for online pricing: Retailers are at the mercy of online consumers," said a Forrester associate analyst. "Online shoppers, empowered by technology and information, pit merchants against each other, demanding the lowest price possible. After all, other merchants' prices are just clicks away."
In response, Forrester recommends that sites adopt personalized pricing, which is the delivery of prices to customers based upon familiarity with a customer's buying behavior and price sensitivity. Retailers will use three criteria for setting prices: the customer's propensity to part with data, time and money.
Not all money is equally green according to International Data Corp. The research firm has found that venture capital (VC) firms are receiving more money than ever. In 1999, U.S. Internet VC's received $31.9 billion compared to the previous year's $7.03 billion. Total revenue raised by all American VCs, meanwhile, topped $46.55 billion in 1999.
www.idc.com
Datamonitor suggest that by 2005, new Internet start-ups will generate $6 billion annually from direct information exchanges. Additionally, the research firm suggests that consumer knowledge traded over the Internet will facilitate more than $50 billion of online purchases in five years. Many people turn to the Internet for information, the firm explains, but such information can be difficult to find. Datamonitor reported, "If people really want useful answers a search engine or directory will never be satisfactory. People searching for answers need other people."
They suggest that the next "killer app" for the Net will be one-click Internet services sites that will help trade their knowledge for millions in cash. These sites, according to Datamonitor, will revolutionize the Web search engine by replacing Web pages with people, while generating awesome amounts of revenue.
www.datamonitor.com
Where's the Money Going?
The average American Internet shopper will spend about $627 this year, an increase from last year's average of $500. Additionally, total American e-commerce sales should reach $37 billion by the end of 2000, reports eMarketer in their new eCommerce: B2C Report.
Further, the report also reveals that online retail expenditures could top $100 billion by 2003. "In a matter of months, shopping on the Web has matured from a small e-savvy few to a viable alternative from U.S. consumers," explained a Statsmaster for eMarketer. "The number of online browsers has increased significantly since 1999 and web commerce growth will continue to accelerate, beyond even previously aggressive expectations."
www.emarketer.com
Pricewaterhousecoopers, meanwhile, is keeping tabs on businesses Internet expenditures. The firm expects a 23 percent increase in Internet business spending. They also have determined that 80 percent of technology businesses are now engaged in e-business.
www.barometersurveys.com or www.pwcglobal.com
"By 2003, US consumers and businesses will spend $2 trillion over the Net. Online retail sales will hit $144 billion, and business-to-business sales will reach $1.8 trillion," according to Forrester analyst Eric
Schmitt. "To thrive in these competitive arenas, firms will need to the software tools to promote trends, and capture market share, as well as the support tools to retain buyers--all of which require a reliable, high-performance software infrastructure."
As a result, Forrester believes user demands will force dramatic changes in how applications are built and purchased. Additionally, it predicts that American software sales will reach $14.5 billion by 2003.
www.forrester.com