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B2C

August 10, 2009
tags:
BDefinition:
Business that sells products or provides services to end-user consumers.
Meaning of B2C back to top
B2C ordinarily refer to on-line trading and auctions, for example, on-line stock trading markets, on-line auction for computers and other goods. B2C e-commerce refers to the emerging commerce model where businesses /companies and consumers interact electronically or digitally in some way. One of the best examples of B2C e-commerce is Amazon.com, an online bookstore that launched its site in 1995.
In a B2C e-commerce the focus is more about enticing prospects and converting them into customers, retaining them and share value created during the process. The ultimate goal is the conversion of shoppers into buyers as aggressively and consistently as possible.
In a typical B2C flow of information between business and consumer typically is through the medium of Internet. This flow includes product orders/service requests from customers, product information, specifications, providing of services by Business etc. In addition, it may also include, flow of tangibles (e.g. goods ordered from customer, documents transfers between business and customer etc.)
Asia-Pacific B2C E-Commerce Awakens
In 2006, B2C e-commerce sales for the five major markets in the Asia-Pacific region totaled only $59.1 billion, and Japan accounted for a tiger￯﾿ᄁ￯ᄒタ￯ᄒルs share of the sales. But things are changing. EMarketer forecasts that B2C e-commerce sales in the region will grow at a 23.3% annual rate, reaching $168.7 billion in 2011.

Japan was the largest market in the region, by far, with a 62.3% share of online sales in 2006, says Jeffrey Grau, eMarketer Senior Analyst and author of the new report, Asia-Pacific B2C E-Commerce: Focus on China and India. But by 2011, Japan and South Korea, the region￯﾿ᄁ￯ᄒタ￯ᄒルs other mature market, will both lose share to two up-and-coming online markets￯﾿ᄁ￯ᄒタ￯ᄒヤChina and India. Both China and India are growing rapidly, but they are far from reaching their vast potential.

A number of hurdles, common to both countries, must be cleared to ensure sustainable long-term growth, says Grau. Immature online payment systems, poor delivery networks and distrust between buyers and sellers, to name just a few.

Smaller developing countries in the region, such as Thailand, the Philippines and Malaysia, are also on track to become viable e-commerce economies.

For Western e-commerce firms with global aspirations, the challenge is to decide what to do in this region and how to do it, says Grau. These markets are very different, so prospective entrants must seek local solutions.

Before jumping in, however, companies should be warned that it will take longer for e-commerce to advance from its formative stage in India and China and other developing countries in the region than it did in advanced industrialized countries like the US, Japan and Western Europe.

Most countries in the region, particularly China and India, lack a nationwide credit card system or an efficient delivery network, says Grau, essential infrastructures that have greatly facilitated e-commerce growth in more advanced countries.

In addition, in developing countries, the online shopping process is often at odds with traditional business practices. B2C transactions in China and India are conducted on a cash-basis, requiring e-commerce companies to provide alternative-payment methods, such as cash on delivery and wire transfers. Still, no matter what the obstacles, the markets of the region are simply too big to be ignored, says Grau.

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