Profits due to the internet economy will attract
many new users to the net. As this new medium develops and changes, allowing
more new users to connect, will allow better use of the web, translating into
increased shopping and buying. This growing activity is attracting businesses
around the world interested in expanding markets and consumers. This new
cyber-economy is possible if there is a significant number of users on line, 10
to 20 percent of the total population. The North American continent has obtained this
level of usage and as a result has achieved 50% of world’s net usage.
The increase of net usage by the rest of the world
will surpass the level of United States and Canada together between 1999 and
2002, while the level in the North America will remain the same. The use of the
net globally will increase by 118%, while North America will just grow by just
50%. As other countries keep increasing the activity on the Internet, North
America will remain just 1/3 of the total global picture. By 2002, Europe will
continue growing at levels of 30% while the usage of Internet in the Asian
countries will increase to 22%. Latin America will reach 15%.
In 1998 spending on e-commerce in Latin America
reached $167 million according to the International Data Corporation (IDC). This
represents a 361% incremental growth through 1997. The level of business with
e-commerce kept rapidly increasing due to the fact that more and more users were
connecting to the net. Companies saw a great niche opportunity in targeting the
Latin American continent, where some of the infrastructure was not built yet,
giving these companies a new way of incorporating into existing channels through
the net. IDC predicts that between 1999-2003 the Latin market will reach an
above average compounded annual growth rate of 117%. This level will drastically
change to $8 billion by the end of 2003. The Latin American market with special
commonalties such as language, culture, values, history and economics will make
it possible to create a unified multi-economy.
Are you looking at the East Silicon Valley? While
Internet technology is still primitive in China with its 1.2 billion people
compared to the United States, the number of users is doubling every month.
Today there are about 8 million people who are connected to the web. By the end
of 2002, this number will reach about 50 million users, and by 2005 there will
be more people in China using the Internet than any other country in the world
besides United States. The Chinese government is pushing to spread technology
throughout the country where the investment has reached $28 billion dollars to
connect via fiber network 90 percent of the Chinese land. Some companies are
starting to move into, what it is today, the biggest market in the world. Many
companies are opening new offices and forming joint ventures to sell products
and services to this new "east valley".
There are a few basic reasons why this growth is
continuing to reach these levels:
- Deregulation in the telecom industry will provide
lower cost for all users.
- Continuous penetration of connectivity methods
such as modems and more powerful systems.
- Penetration in markets of midband and broadband
options.
Multilingual Planet will be able to construct a
multicultural site to target any market.