Which country in Asia has the highest number of web sites selling retail products?
If you think it is Singapore or Australia, you are wrong, according to Boston Consulting Group (BCG) head of Southeast Asia e-commerce practice, Scott Desmarais.
BCG recently reported that South Korea is the most active country in this area, with 409 web sites out of the 1,400 Asian-based sites selling products to end-users on line.
Thailand lags far behind. There are around 150 web sites here ready to sell products and services today, according to BCG's report on "E-tailing in Asia", which studied the electronic commerce market and opportunities for online consumer purchasing.
While the number one web site category in other Asian countries was computers and related products, travel-related sites were the leaders in e-tailing in Thailand, according to the study.
The Thailand Development Research Institute Foundation (TDRI), in a study conducted this year, found that most of the travel sites here offer only information rather than e-commerce. However BCG claims that after the first e-commerce study by TDRI, many travel vendors have added on-line payment capabilities.
The other top categories include cards/gifts/flowers, on-line malls, book stores and auction sites.
The study projected that revenue from the e-tailing business in Thailand for 1999 would be some US$7 million (273 million baht)-up from US$2 million (78 million baht) in 1998.
The figure was based on a study by E-Global and other reported estimates.
BCG suggests that around 3 percent of Internet users here have bought things online, while 15 percent have the intention to do so. This estimate was based on a random sampling of 60 Internet users out of the total 600,000 user population here.
Mr Desmarais said compared to other countries, Thailand was more active and attractive in terms of activities, pointing to the establishment of the Adventure Club of Shin Group and the acquisition of Sanook.com by South African-based MWeb.
In addition, the market here will be huge since the number of Internet users will grow dramatically to nine million by the year 2005, he said.
To promote the growth of e-commerce, the government must have a clear focus, he said.
"You have to know what you are going to do and by when. That will allow e-commerce to happen, Mr Desmarais said, adding that otherwise businesses in the country would be left behind.
Telecommunications and banking deregulation would be another solution that could allow more players to introduce more services.
Mr Desmarais said in other Asian countries, governments facilitate and support e-commerce by providing funds.
"It is happening in other countries, but not yet in Thailand. So the question for the government to ask is 'what kind of support will it take to help support electronic commerce in Thailand?'," he noted.
Other key basic issues affecting e-commerce here include the limited number of credit card holders, low telephone density and PC penetration, slow customs clearance, high tariffs and a high level of security concern among Internet users.
After its first e-tailing study in Asia, BCG will follow-up with another report on e-commerce in the business to business market. As part of this, in-depth interviews with companies in Thailand will be conducted, he noted