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Non-Tech : CAOL: The Chinese AOL and Internet Lottery -- Ignore unavailable to you. Want to Upgrade?

To: gizmo&jack who wrote (448)	6/13/1999 8:20:00 AM
From: WEBNATURAL	Read Replies (1) \| Respond to of 720

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