E-commerce market in Japan Comparison with Korea and China · Population of Internet users from...
Transcript of E-commerce market in Japan Comparison with Korea and China · Population of Internet users from...
EE--commerce market in Japan commerce market in Japan & &
Comparison with Korea and ChinaComparison with Korea and China
Ding, Xiaojun, Tokyo Institute of Technology Ho, Sho, Tokyo Institute of Technology Iijima, Junichi, Tokyo Institute of Technology
Asia e-Business Workshop 2002
Introduction • Background
– the same region– the different economic systems– more and more communication & cooperation
• Goal– to offer related information so that discover the existing
obstacles or barriers– to learn valuable experiences to find proper solution of the
existing barriers– to search more elaborate framework for analysis
Outline
Overview of e-commerce
E-commerce market in Japan
Conclusion & Future work
Process of comparison
Overview of e-commerce
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2000 2001 2002 2003 2004 2005
Home Mobile
E-commerce market in JapanPopulation of Internet users from home & mobile
Source: Nomura Research Institute
(10 Thousands)
E-commerce market in JapanB2B market size & segmentation
Source: ASCII Corporation
Information & electronic machinery
44.33%
Automobile 39.73%
B2B market size34,030,000 Million JPY in 2001
Automobile 18.70%
Construction 11.54%
Information & electronic machinery
24.72%
Textile & daily necessaries
8.75%
B2B market size125,430,000 Million JPY in
2006
E-commerce market in JapanB2C market size & segmentation
Source: ASCII Corporation
Estate 22.0%
Automobile 23.4%
PC appliance 10.0%
Travel 8.0%
Entertainment 7.3%
Finance 4.2%
B2C market size1,484,000 Million JPY in 2001
Estate 8.7%
Automobile 14.2%
Clothing 8.2%
Travel 14.6%
Entertainment 6.9%
Other services 15.8%
Foodstuffs 7.3%
B2C market size16,297,000 Million JPY in 2006
Process of comparison
Market ReadinessMarket Readiness
•Business
•Network •Host & PCs•Main telephone linesand Mobile cellular
•Broadband
•Internet Users
EC Market StatusEC Market Status
•Market Size•B2B•B2C
•Online Products & Services
•Payment system
•Existing Barriers•Some Considerations
Market Readiness ー Business
• Six categories in the methodology– Connectivity– Business environment– E-commerce consumer & business adoption– Legal & regulatory environment– Supporting e-services– Social & cultural infrastructure
• Four groups of e-readiness rankings (2001)– E-business leaders– E-business contenders– E-business followers– E-business laggards
Market Readiness ー Business
Source: The EIU e-business forum
E-readiness ranking (of 60) Country & Area E-readiness score (of 10)1 US 8.732 Australia 8.293 UK 8.10 71314182125263133394245464748495460
SingaporeHongKongIrelandJapanSouth KoreaPortugalGreeceArgentinaMalaysiaPhilippinesRussiaIndiaThailandVenezuelaBulgariaChinaIndonesiaPakistan
7.877.457.287.186.976.215.855.014.833.983.843.793.753.623.383.363.162.66
E-businessLeaders
E-businessContenders
E-businessFollowers
E-businessLaggards
Market Readiness ー Network
Source: ISC (www.isc.org), ITU (www.itu.int)
Country
South KoreaChinaJapanWorldWorld
Hosts (Jan, 2001)
397,80970,391
4,640,863109,574,429109,574,429
Growth (1996-2001)
13.632.817.211.611.6
Hosts/per 1,000 people(Jan, 2001)
8.40.1
36.618.018.0
Change of Internet Change of Internet --hostshosts
Estimated PCs (2001)Estimated PCs (2001)
Total (k)25,00044,40012,000117,093117,093495,366495,366
CountryChinaJapanKoreaAsiaAsia
WorldWorld
Per 100 people1.93
34.8725.143.313.318.428.42
Market Readiness ー Network
Source: ITU (www.itu.int)
Main telephone lines & Mobile cellular (2001)Main telephone lines & Mobile cellular (2001)
Country
ChinaJapanKoreaAsiaAsia
WorldWorld
Main telephone lines (k)
179,034.076,000.022,724.7391,179.0391,179.0
1,046,087.61,046,087.6
CAGR(%)(1995-2001)
28.03.43.413.613.67.27.2
Main telephonelines per 100 people
13.8159.6947.6010.8510.8517.2117.21
CAGR (%)(1995-2001)
26.93.12.412.112.15.85.8
Cellular mobile subscribers2001(k) CAGR(95-01) Per 100 people
144,812.0 84.9 11.1774,819.2 36.2 58.7629,045.6 61.4 60.84336,614.4 56.3 336,614.4 56.3 9.33 9.33 946,297.4 47.8 946,297.4 47.8 15.5715.57
Country
ChinaJapanKoreaAsiaAsia
WorldWorld
As % of total telephone subscribers
44.749.656.146.346.347.547.5
Market Readiness ー Network
• Korea– More than 60% of Korea’s households are utilizing broadband Internet.
– DSL, Cable modems, Wireless services, ADSLs
• Japan
– Number of subscribers for broadband services has exceeded 2million.
– Wireless services, Cable Internet, DSL, Fiber Optics-based services
• China
– By 2005 China will have 500 million phone users & 100 million internet users, including 20-25 million broadband users
– Ethernet to the home, DSL, cable modems and LMDS
Source: The Korea Times, Ministry of Public Management, Home Affairs, Posts&Telecommunications, EE Times
Market Readiness ー Network
• In Japan & Korea– Higher percentage of population who have used
different access technologies
• In China– Noticeable growth rate of items with regard to network
readiness
Market Readiness ー Internet Users
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5
10
15
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25
30
35
1999 2000 2001
JapanChinaKorea
Year
Numbers (million)
Source: CNNIC, Kiko-Net, KRNIC.
Market Readiness ー Internet Users
Source: ITU (www.itu.int)
Users (k)(2001)
33,700.057,900.024,380.0157,778.5157,778.5500,074.3500,074.3
Country
ChinaJapanKoreaAsiaAsia
WorldWorld
Users Per 10,000 people(2001)
260.00 (2.6%)4,547.10 (45.5%)5,106.83 (51.1%)
437.49 (4.4%)437.49 (4.4%)823.24 (8.2%)823.24 (8.2%)
China KoreaJapan
2.6% 45.5% 51.1%
EC Market Status ー Market Size (Asia)
Source: eMarketer
0200400600800
10001200140016001800
2000 2001 2002 2003 2004eMarketer Forrester Research Goldman Sachs
Comparative Estimates: B2B e-commerce Revenues in Asia, 2000-2004 (billion $)
EC Market Status ー Market Size(Asia)
Source: eMarketer, “The eAisa Report 2001”, Feb, 2001
B2B e-commerce by region, (in billions) (As a% of Worldwide B2B e-commerce, 2000-2004)
North America Asia/Pacific
Europe Latin America
Africa/Middle East
16%
2000
10.8%
2004
12.9%
2003
14.4%
2002
15.3%
2001
EC Market Status ー Market Size(Asia)
• Climbing absolute amount of B2B e-commerce revenues in Asia
• Slightly reduced share in worldwide B2B e-commerce market
EC Market Status ー Market Size
Source: CNN.com, ASCII Corporation, Korea Information Society Department Institute. (Unit: Million$)
9290
47.17
11390
157.25
0
2000
4000
6000
8000
10000
12000
2000 2001
B2B B2C
2367
1074.8
3090
1385.6
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2000 2001
B2B B2C
2864488,421.58
1055808
134,682.60
0.00
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
2001 2006
B2B B2CChinaChina
KoreaKorea
JapanJapan
EC Market Status ー Market Size (2001)
Source: CCID Consulting Co., METI, Korea Information Society Department Institute.
0 10000 20000 30000
Japan
China
Korea
B2BB2C
Million$
EC Market Status ー Online Products & Services
Source: CNNIC, ASCII Corporation, Korea National Statistical Office.
33.70%
58% books & magazines computer appliancephotographic equipment communication appliance
AV equipment living & housingclothing family electrical appliancesports equipment medical care servicespresent delivery financial & insurance servicesticket ordering educational servicesothers
22.00%
23.40%
books/music entertainment travel
PC appliance other services finance
other products estate automobile
furniture & sundry goods foodstuffs gifts
clothing
10.50%
19%books computer hardware/accessorieshousehold items cosmeticsleisure goods/hobby home appliancesCDs/music videos children goodsaccessories clothestelecommunication products gifts/ticketsaudio equipment foodfurniture computer softwarecar accessories flowers
Products /services that users had purchased in China (multiple choice)
B2C segmentation in Japan (2001)
Recently online purchased items in Korea
EC Market Status ー Payment System
Source: CNNIC, Kiko-Net, Korea Internet White Paper
onlinetransferscredit cards
e-money
others
cash & carry
online payment
post officestransferbank transfer
others
Payment methods in Korea (2000-2001)
Payment methods in China (2001)Payment methods in Japan (2001)
otherspayment specified by own providercharged directly to the bankpayment via convenience storesbank transferpostal transfercash on deliverycredit card
EC Market Status ー Payment System
• Diversification of payment methods in Japan
• Diverse payment methods are being introduced in Korea
• Inconvenient payment is one of primary obstacles of online purchase in China
0%
20%
40%
60%
80%
Existing barriers in e-commerce (Asia)
Source: Far Eastern Economic Review November 23,2000
Cannot see & touchbefore buying
Security Unattractive price
Connection speed
Cannot find thewanted goods
No internationaldelivery
Delivery istime wasting
No good navigationon website
Existing barriers in e-commerce
Source: CNNIC, The Electronic Times2001
•In Korea. Compared with B2C, B2B is not so active.•Many bills of draft•Rebate system•Strong human relationships within companies
These are conflicting with high transparency of B2B.
•In Japan. EC and Internet related companies have little English notation
•EC of Japan does not have the strong consciousness to a transnational market.
•In China (Primary obstacles of online purchase) •Security 31%•Inconvenient payment 11.8%•Quality, after service & credit of producer 30.2%•Delivery is time wasting & channel is not expedite 13.9%•Unattractive price 6.3%•Unreliable information 6.3%•Others 0.5%
Conclusion
• Rising Asia e-commerce estimates & smaller share in the worldwide e-commerce pie
• Optimistic picture & Existing barriers of e-commerce development
• Japan - who leads the Asian e-commerce raceKorea - who is a potent e-commerce competitorChina - who experiences the fastest growth
Future work
• Common fields to make comparisons & conclusion of e-commerce in the different countries are expected.
• There should be more elaborate & systematic framework of comparison applicable to these countries in Asia.
• More channels of information sources are needed to further research.
Thank you Thank you
Thank you for your attentionThank you for your attention