Ecommerce Store
Ecommerce Store
E-commerce development in Japan has come a long way and industry experts predict that the e-commerce market in Japan is going to grow from US$4 billion in 1999 to an astounding $800 billion by 2009. Some of the earlier reports like the one from Andersen Consulting as well as the Japanese Ministry of International Trade and Industry (MITI) have stated similar growth patterns as far a e-commerce development in Japan is concerned.
According to a study the B2B or business-to-business e-commerce skyrocketed to a staggering $3.2 billion in 1999 in Japan and this is a growth of 420%, which by no means is a small amount. According to MITI and Anderson Consulting, Japan can expect a lot of expansion in the B2B market and continue to show immense growth and might hit the $900 billion mark by 2010.
One the other hand the B2C or business-to-consumer e-commerce has also been steadily climbing in Japan. The e-commerce development in the B2C market in Japan touched approx $1 billion in 1999 and is expected to rise above $100 billion by 2010.
There are some major market segments that have been identified as the main areas that will fuel the B2C growth and these include travel, automobiles, and real estate. According to market predictions, each of these segments can provide almost $9.5 billion in revenue in the next couple of years. But here’s another aspect of e-commerce development in Japan: there are several roadblocks that will have to be cleared before Japan can actually show tremendous growth in this sector.
According to a report e-commerce development in Japan has slowed down over the last few years due to several factors and the most notable of them is the high expenses involved in telecommunications followed by the lack of Internet applications that are being offered in Japanese language. Now! language has become a huge barrier for ecommerce development and success in Japan and solutions need to be worked around it.
According to a study, it has been seen that around 65% of Japan’s estimated 20 million Internet users have access to the World Wide Web through the mobile or telephone network, which is maintained by Nippon Telegraph & Telephone Corp. (NTT). NTT in the last few years has not lowered its internet access fees and is charging around $2 per hour unlike the flat fee structure that is currently operational in the US. The high Internet fee is one of the important reasons that has caused many Internet users to curtail most of their Web-surfing activities.
In a recent press release, Japan’s mega electronic company Sony Corp. has made an announcement for building a wireless loop that will be able to offer Japanese people high-speed and low-cost Internet access. This internet access will be available in only some of the large Japanese cities. So ecommerce development in Japan does have a bright future because there will be many more companies who will start offering low cost internet access through broadband or wireless routers in the future, which means that Japan has a lot of untapped potential.
For further information, please visit E-commerce Development in Japan
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