Corante

About this Author
CORANTE John Yunker is founder of Byte Level Research and author of the widely acclaimed book, Beyond Borders: Web Globalization Strategies and editor of Global By Design.

He has covered the emerging field of Web globalization for half a decade and has published a wide range of reports dedicated to best practices in Web localization and internationalization.
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Going Global focuses on the risks and rewards of expanding into new geographic and cultural markets, from Web globalization to international marketing to global usability.
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September 21, 2004

China: 1.3 Billion People; 2 Million Credit Cards

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Posted by John Yunker

This Reuters article illustrates some of the greatest obstacles to expanding into new markets: payment and fulfillment.

Localizing a Web site can seem downright trivial when compared to navigating complex finance laws and regulations, selling to people who don't have credit cards, and delivering products when there are few reliable services. Welcome to China.

Here are some interesting stats from the article:

  • China's online shopping market was worth 4.2 billion yuan ($507.5 million) last year and is expected to double this year, according to market research firm Shanghai iResearch.

  • Only 10 percent of China's estimated 90 million-plus Web surfers buy things on the Internet, compared with 38 percent in the United States, according to industry executives.

  • Global Internet giants including eBay, Yahoo, and Amazon.com have all taken the China plunge in the last year, paying a combined $375 million to acquire domestic start-ups.

  • The nation's credit card holders now number a scant two million, a fraction of its 1.3 billion people.

eBay, which is already in China, is close to launching PayPal in China, which will help fuel ecommerce in the country. And China Post appears to be opening the courier business to the likes of DHL, UPS and FedEx.

When going global, companies need to look well beyond their Web sites.

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