E commerce market research in Australia. Problems and perspectives.

Added: 03/21/2006

Most of us have acquired the status of Internet users: e-mail, e-newspapers, entertainment sites and etc. are used in everyday life and we can hardly imagine our activity without internet services. But it is worth saying that Internet has lately become not just a mere communicative means; it successfully serves for business aims too, being the source of income for commercial companies. Thus, most enterprises use their internet sites not only as a visiting card, but more as the business instrument. In some countries, however, as e-commerce market reserch shows, the way of new economics development is far from being easy and opimistic.

Today all countries of the world are interested in development of Informational Technologies and e commerce within their states. Each company carrying on-line business aspires for getting profit out of a perspective business.Though, different companies have different approaches to make their business more profitable. For example, some companies rush to their potential clients without sufficient information about supply and demand in the market. Thus, such thoughtless actions are often doomed to a failure. Other companies, unlike their competitors,carry out a set of smart market researches, the results of which are taken as the basis for commercial offers and the best ways of goods promotion. Nevertheless, by the time the company is ready to be presented to the market in its, what might seem, the best way, the situation proves to be quite different from the initial state, and the demand for goods decreases steeply. That is why, business company can achieve succsess in case its managers combine these two approaches.

There exists a division into local and internetional companies, developing their business in several countries simultaneously. But in this situation it also becomes evident that such like companies should have a quick reaction to any changes both in local or foreign markets, "catching the moment" and the client,being, at the same time, very causious to study all apects of the market of a deffinite state, to avoid a failure. Sometimes it happens that insufficient study of a certain country market leads the company to mistaken views as to the perspectives of business development in a foreign country. For example, one of such countries with a high potential and low effectiveness is Australia. E commerce market research in Australia showed that the ratio of active Internet users to the total quantity of inhabitants is more than 40%. Such statistics of e commerce market research might seem to be favourable enough, and the internet market - to be full of opportunities for earning money. As a matter of fact, e commerce market in Australia is far from being profitable and the number of internet users is far from being enough for this. People are just reluctant to use Internet services. Advertising and e-commerce companies have been solving the problem of development of perspective Australian Internet service market for many years. People do not wish to invest money in Internet advertisement, they are very causious to finance e-commerce projects too. There comes a question: Why is the advertising market of the country estimated at 35 million dollars only, thus, making just 0,5% of a potentially possible showing? Why in Canada, for example, this showing is more than 1,7%, while the percentage of Internet users is hardly ever more than in Australia? All these, as well as many other questions, are left without answers for a while. But one cannot deny the internet statistics, showing that while 12% of Australian internet users are going to buy something by means of internet services, 40% of Internet usres are ready to do this in America, and 28% - in Canada. By the opinion of Guy Granswich, the analyst of Jupiter Media Metrix, a low potential of Australian B2C with such a big quantity of internet users is mainly bound up with the lack of mutual favour between the buyer and internet companies. The letter should try to completely change their way of working, paying an intent attention to qualitative showings to attract buyers' attention. Many market researches are apt to consider reluctance to be a possible reason for such a stable situation with Internet users among Australian people. Probably, being lazy enough, Australians are not ready to objectively evaluate possibilities of the new economics and begin developing a ready-made source of income in their land. According to e commerce market research in Australia, attractive internet business projects do not get expected promotion not only from potential organizers, but by mere e-users either. Australian people do not wish to while away the time in Internet, moreover, they are not ready to work as much as, let's say, Americans do. Due to the same e commerce market research, carried out by Jupiter Media Market, it was possible to know that an australian internet user spent only 10 hours a month in the net, while his american collegue worked about 5 hours more. This is because market researches actively appeal to Australian companies to start Internet promotion work immediately and find potential clients today. And it is not necessary that American experience in the field of e-commerce must be adapted by Australians. It is comprehensible enough that Australia works out its own business models adapted for local trade aspects and directed to market researches, active advertisment and, as the result, a wide coverage of e-market. And meanwhile everything is left without any noticable changes, in spite of researches' expectations that on-line advertisement, as one of the stages of e commerce market development, is to grow in Australia by degree.

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