Japanese business is rushing to set up shop on the Internet. At present the majority of on-line enterprises are direct merchandisers, which have made available a wide range of items, from computers and other Internet-related hardware and software to books to popular foods. According to a survey conducted by the Nihon Keizai Shimbun, around 150 "virtual retailers" are already up and running, and the scope of on-line business is quickly expanding as a succession of new services, such as hotel reservations and document translation, are staking out a piece of cyberspace alongside retail enterprises. With more and more Japanese consumers coming on line, the Internet is expected to develop into a market of tremendous potential.
Japanese Business Goes Virtual
Although Japanese direct merchandisers first appeared on the
Internet last fall, their numbers began to increase
noticeably this spring. It has been estimated that lately as
many as 20 new retailers are coming on line every week.
Around 40 of those currently in operation deal in computers
and peripherals, the most common on-line business, and foods
and beverages are also prominent, with such traditional
favorites as green tea, Japanese sweets, and sake each being
hawked by four companies. Internet sales of books are brisk
as well, and publishers as well as bookstores have put
together on-line catalogs.
More recently, inroads have been made into cyberspace
by various service industries that are well positioned to
take advantage of the possibilities offered by the Internet.
Hotel chains have begun taking reservations by computer
network, and a number of translation firms offer their
services via electronic mail. Another trend is the entry of
large companies into the virtual market. Between August and
September, a major bookstore inaugurated on-line sales of
books and stationery, and one of Japan's leading department
stores made available a line of items including compact
discs.
Explosion of Internet Users
The explosion of Internet users in Japan is behind the
current on-line business boom. Until last year, only a small
number of homes had access to the Internet, which was
principally used by businesses, government agencies, and
universities. This year, amidst a veritable Internet frenzy,
the number of private users has taken off and shows no sign
of slowing. One reason for this breakthrough is that older
on-line services began offering their subscribers Internet
access, which has made it easy for consumers to explore
cyberspace.
(The above article, edited by Japan Echo Inc., is based on domestic Japanese news sources. It is offered for reference purposes and does not necessarily represent the policy or views of the Japanese Government.)