E-commerce Development in Japan

E-commerce development in Japan has come a long way, and experts are predicting that e-commerce market in Japan is expected to grow from $ 4 billion in 1999 to a staggering $ 800 billion by 2009. Some of the previous reports, such as Andersen Consulting as well as from the Japanese Ministry of International Trade and Industry (MITI) reported growth patterns similar with respect to a development of e-commerce in Japan is concerned.

A study of 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%, that in no way is a small amount. According to MITI and Andersen Consulting, Japan can expect a lot of expansion in the B2B market and continue to show immense growth and could hit the $ 900 billion mark by 2010.

Another part of the B2C or business-to-consumer e-commerce has been steadily increasing in Japan. The development of e-commerce in the B2C market in Japan has reached about $ 1 billion in 1999 and should rise above $ 100 billion by 2010.

There are some major market segments were identified as key areas that feed the growth of B2C and these include trips, cars, and real estate. According to market forecasts, each of these segments can provide almost $ 9.5 billion in revenue over the next two years. But here is another aspect of the development of e-commerce in Japan: there are several roadblocks to be cleared before Japan could actually show a large growth in this sector.

According to a report of e-commerce development in Japan has slowed in recent years due to various factors and the most notable of which is the highest costs in the telecommunications sector, followed by lack of Internet applications that are offered in Japanese. Now! Language has become a huge obstacle for e-commerce development and success in Japan and the solutions must be worked around it.

According to one study, it was found that approximately 65% ​​of Japan's estimated 20 million Internet users have access to the World Wide Web through the cellular network or telephone, which is operated by Nippon Telegraph and Telephone Corp. (NTT). NTT in recent years has lowered its charges for Internet access and charge about $ 2 per hour in contrast to the flat fee structure that is currently operating in the United States. The highest proportion of Internet is one of the important reasons that caused many Internet users to limit most of their web-surfing activities.

In a recent press release, the Japanese mega electronics company Sony Corp. has made an announcement for the construction of a cycle that wireless will be able to give the Japanese access to the Internet at high speed and low cost. This Internet access will be available only in some of the major Japanese cities. Thus the growth of ecommerce in Japan has a bright future, because there will be many more companies will start offering Internet access at low cost via broadband or wireless router in the future, which means that Japan has a lot of potential not exploited....