Feeds

Asian online shopaholics to drive internet economies

UK still number one though...

Security for virtualized datacentres

Asian nations including India and China are set to drive unprecedented levels of internet-related economic growth among G-20 countries in the next four years, although the UK will remain top dog, according to new research from the Boston Consulting Group.

The management consultancy took a look at how large a slice of GDP the internet is responsible for in the world’s 20 major economies, with online consumption and infrastructure investment the two main contributors to internet GDP.

It found that the so-called ‘internet economy’ will contribute 5.3 per cent or $4.2 trillion (£2.6tr) to the G-20’s total GDP in 2016. The UK topped the table in the percentage stakes, with its internet economy predicted to contribute an impressive 12.4 per cent to its total GDP in four years’ time.

“If it were a national economy, [the internet economy] would rank in the world’s top five, behind only the US, China, India, and Japan, and ahead of Germany,” said report co-author David Dean.

“Policymakers often cite GDP growth rates of around 10 per cent per year in the developing markets, but they look past similar, or even higher, rates close to home.”

One of the key regions driving what Dean described as “unfettered growth” is Asia, which accounts for four out of the top six countries. In order, these are: South Korea, China, India and Japan.

While South Korea and Japan are labelled as established “natives” in the report – with internet economies predicted to contribute 8 per cent and 5.6 per cent to their respective GDPs – China (6.9 per cent) and India (5.6 per cent) are “aspirants” at an earlier stage in their development.

India in fact is predicted to have the second highest compound annual growth rate (CAGR) for its internet economy at 23 per cent in the period 2010-2016, while China isn’t far behind in fifth place with 17.4 per cent CAGR.

Several “natives” on BCG’s e-Intensity Index – the UK, South Korea, and Japan – are among those nations with the largest internet contributions to GDP. China and India stand out for their enormous internet-related exports – China in goods, India in services – which propel their internet-economy rankings toward the top of the chart. Mexico and South Korea have also developed significant internet export sectors.

According to the Boston Consulting Group, internet GDP growth basically comes down to more users and broader access, with the increasing popularity of mobile devices and social media platforms fuelling both elements.

The report also highlighted the importance to retailers of multi-channel strategies.

It revealed that in virtually all G-20 countries more money was spent on ‘research online purchase offline’ (ROPO) than online-only, with smartphones in particular being used by consumers to compare products and deals whilst out and about shopping.

In 2010, for example, Japan ROPO sales numbered $139bn (£87.5bn) as opposed to $89bn (£56bn) spent online, driven by the fact that Japanese consumers still like the experience of shopping in-store.

In China, consumer-to-consumer e-commerce is incredibly popular, with more products purchased on the eBay-like site Taobao in 2010 than at the country’s top-five brick-and-mortar retailers combined. ®

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.