Good page to watch chinaonline.com
China's E-commerce Wave Waiting to Happen, U.S.
Companies Poised to Assist
By Monica Buckley
ChinaOnline reporter
(6/11/9) U.S. high-tech firms are jumping on a virtual bandwagon,
offering companies in China e-commerce "solutions" that combine
hardware, software, training and consulting. Netscape's current
business strategy includes plans to introduce such packages to more
Chinese enterprises, and Compaq Greater China recently announced a
new joint venture company, Compaq Start Electronic Business
Technology, that will offer small and medium firms in China
e-commerce solutions and services.
Clara Chan, marketing communications director for Compaq Greater
China, said, "Chinese companies need hands-on, real-world skills and
technology transfer."
Chan expressed confidence that Compaq's research indicated solid
demand, although she said the companies offerings are still too new to
know just how great demand will be.
Getting in on the ground floor can't hurt the company's position, said
Jay Rothstein, president of China Venture Advisors in San Francisco.
"In China especially, there is a huge advantage to getting into any
industry in the early stages," he said.
The use of the internet is certainly in its early stages in China, and
some among the country's 2.1 million subscribers have complained of
a lack of Chinese-content sites. So, Chinese companies are looking to
companies like Compaq, not just to help them participate in
business-to-business transactions online, but to reach the small but
growing number of consumers who will eventually make use of the
Internet for purchases.
But putting up a site and offering goods for sale online are just first
steps when it comes to reaching consumers over the net in China.
According to Rothstein, the obstacles to consumer e-commerce in
China include:
The payment issue. China lacks a strong base of credit card
holders, and the Chinese maintain a strong preference for using
cash
Lack of trust. In China, people want to see what they are
buying. They are not in the habit of trusting that they can return
an item, no questions asked.
Limited delivery methods. Although the mail system works
well in China, distribution is more complicated, and there is no
such thing as calling with a tracking number to check on a
package.
Consumer internet commerce may be a long way from booming in
China, but some companies are getting into the act. Beijing Book
Center Online was launched in March with the help of Compaq, and
China Food and Beverage Company last month announced it will sell
its Hao Dun beer online, in both the United States and China.
According to George Bentley of investor relations at China Food and
Beverage the web site is still not yet operative in China, but people
have responded, saying they are looking forward to it. The delivery
areas, however, will be limited to certain municipalities, he said.
To contact Monica Buckley:
P: (312) 335-8881
F: (312) 335-9299
E: info@chinaonline.com |
