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IDC Predicts Double Digit Growth of Asia/Pacific Internet Buyers from 2003 to 2008

Domain Hosting SINGAPORE, 29 July 2004 According to IDC's forecast on the Asia/Pacific Internet Market 2004-2008, the Asia/Pacific excluding Japan Internet market will see Internet users increase at a CAGR of 17.8% from 2003 to 2008, while internet buyers will increase at 30.7% CAGR in the same period. Consequently, B2B ecommerce is forecasted to grow rapidly at a CAGR of 59.1%.
"The Asia/Pacific market (excluding Japan) is becoming an increasingly attractive ecommerce environment," said Claudio Checchia, Research Manager, Consumer IT Program, IDC Asia/Pacific "To enhance their competitiveness, companies must invest in ecommerce solutions and pursue the expanding market aggressively by taking advantage of vast online opportunities."

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Business Hosting Provider Web With a healthy Internet penetration growth recorded in the first half of 2004, and continued positive economic growth across the region, many businesses have been driven to increase their online services offerings. China's rapid Internet growth has also witnessed a good number of users being turned into buyers and bringing good profits for many online businesses in the last few years. These burgeoning internet trends are expected to drive an explosion of the overall ecommerce market by 2008, where business-to-business (B2B) commerce will make up a large portion this growth.

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Ecommerce Hosting Email Business-to-Consumer (B2C) ecommerce is also expected to grow rapidly through 2008, although it will pale against B2B ecommerce which remains the significantly larger channel. A factor contributing to this phenomenon is consumers' willingness to make online purchases as the internet becomes a more respected and trusted medium, therefore enjoying the convenience of shopping online.

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Cheap Web Hosting "Initially, new Internet users will be reluctant to conduct any kind of business online, citing security reasons as their main concern, explained Mr. Checchia. "It is therefore crucial for today's businesses to implement secure epayment systems so as to foster users' trust in ecommerce sites." In addition to improved security, the increased penetration of credit cards as well as a better understanding of conducting ecommerce through the internet will contribute towards the growth in B2C ecommerce.

This trend is having a big effect on spending patterns. While the cosmetics and toiletries sectors is expected to grow by around 1 per cent a year through 2009, CRM, which predict that the annual growth rate for natural and organic skin care, hair care and color cosmetics markets in the US to be around 9 per cent between 2003 and 2008, increasing in value from $3.9 billion to $5.8 billion.

Small Business Hosting Similar to past growth trends, during 2003 to 2008, Asia's B2B ecommerce market will exceed that of the B2C ecommerce market led by B2B's significantly larger volume purchases. Investments in ecommerce solutions will boost ecommerce revenues as businesses reap the benefits of significant cost savings and greater efficiency for conducting their business online.

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Web Hosting Domains On a country-by-country basis, India is expected to show the highest compound annual growth rate (CAGR) of 83.7% in ecommerce revenue from 2003 to 2008, thus marginally exceeding the CAGR of 81% expected in China. However, China's ecommerce revenue is expected to represent one third of the Asia/Pacific market excluding Japan by 2008. The more mature markets such as Australia, Korea, and Singapore, are also expected to display strong growth rates for their ecommerce markets.

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Domain Name Registration Singapore's ecommerce revenue is forecast to increase at a five-year CAGR of 38.3% to reach US$42.7 million by 2008. Despite its relatively small size in the region, Singapores ecommerce economy will remain extremely buoyant in the 2003 to 2008 period.

Hosting Web Hosting For more information on "Asia/Pacific Internet Market 2004-2008 Forecast Update: 2003 Year-End Review" Doc# AP181436L), please contact Ms. Selina Ang at +65-6228-7717 or email sang@idc.com. For press inquiries, please contact Ee Laine Ng at +65-6228-7769 or elng@idc.com

Web Hosting Plans Contact
For more information, contact:

Web Hosting Business Claudio Checchia
cchecchia@idc.com
+65-6228-7726

Web Hosting Email Ee Laine Ng
elng@idc.com
+65-6228-7769

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