ad info

CNN.com
 MAIN PAGE
 WORLD
 ASIANOW
 U.S.
 LOCAL
 POLITICS
 WEATHER
 BUSINESS
 SPORTS
 TECHNOLOGY
   computing
   personal technology
   space
 NATURE
 ENTERTAINMENT
 BOOKS
 TRAVEL
 FOOD
 HEALTH
 STYLE
 IN-DEPTH

 custom news
 Headline News brief
 daily almanac
 CNN networks
 CNN programs
 on-air transcripts
 news quiz

  CNN WEB SITES:
CNN Websites
 TIME INC. SITES:
 MORE SERVICES:
 video on demand
 video archive
 audio on demand
 news email services
 free email accounts
 desktop headlines
 pointcast
 pagenet

 DISCUSSION:
 message boards
 chat
 feedback

 SITE GUIDES:
 help
 contents
 search

 FASTER ACCESS:
 europe
 japan

 WEB SERVICES:
Computing

From...

European e-commerce lagging, needs push from governments

July 7, 1998
Web posted at: 10:05 AM EDT

by Kristi Essick

LONDON (IDG) -- European countries are significantly lagging the U.S. in the generation of revenue from Internet sales and businesses, and governments need to take urgent action to ramp up electronic commerce, according to a new report.

Unlike in the U.S., where 85 percent of total global Internet-based revenue was generated in 1997, European businesses do not have the government and industry backing needed to jump-start electronic commerce, according to a white paper recently published by the Interactive Media in Retail Group (IMRG).

As it stands now, the U.S. is acting as a large exporter of goods purchased over the Internet. But the promise of the Internet is that companies in any country can have a global presence and become exporters, said the report, which is entitled "Electronic Commerce in Europe."

European companies simply aren't moving their businesses to the Web and users don't seem as interested as their North American counterparts in buying goods online, according to the white paper.

Why is this the case? For starters, there is a much smaller customer base of Internet users in Europe, with the high costs of new hardware and telecommunications further hindering the use of the Internet, according to IMRG. Other issues, such as fears over security and problems arising from different languages and currencies, also continue to be stumbling blocks.

 MORE COMPUTING INTELLIGENCE
  IDG.net home page
  Industry Standard home page
  Industry Standard email newsletters
  Industry Standard daily Media Grok
  Industry Standard financial news
  Industry Standard e-commerce stories
  Computerworld "Emmerce"
  Fusion financial report
Free registration required to access this site
  InfoWorld Internet commerce section
 Reviews & in-depth info at IDG.net
  IDG.net's personal news page
  Questions about computers? Let IDG.net's editors help you
  Search IDG.net in 12 languages
 News Radio
  PC World News Radio
  Computerworld Minute audio news for managers
     
These road blocks are well established, argues the IMRG, and now government and business will have to take action to change the situation, if Europe is ever to catch up in the e-commerce race.

In order for e-commerce to work effectively in Europe, businesses need to cooperate with banks, telecommunication and Internet carriers, hardware and software vendors, and the government, IMRG said. The most important point for businesses to remember is that they must offer a reason to shop online; it has to be easier, cheaper or better than shopping in person.

In addition, smaller companies may be more suited to e-commerce, since the Web works well for selling niche products and tapping into a large number of small markets worldwide, IMRG said. Larger companies can have a hard time representing all of their products on the Internet, without spending a large amount of money to build a complicated site, the research firm said.

Half of all Web-based businesses with 10 or fewer employees were profitable in 1997, compared with only 25 percent of those with more than 50 employees, according to the report.

More information on IMRG's white paper, which outlines a plan for government, industry, banks, technology vendors and Internet service providers aimed at getting European businesses up to speed in the electronic marketplace, can be found at http://195.40.125.18/ecwp/index.htm/.

Kristi Essick writes for the IDG News Service in London.

Related CNN Interactive stories:
Latest Headlines

Today on CNN

Related IDG.net stories:

Note: Pages will open in a new browser window

Related sites:

External sites are not
endorsed by CNN Interactive

SEARCH CNN.com
Enter keyword(s)   go    help

   
 

Back to the top
© 2000 Cable News Network. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines.