Development of the Indian Internet
| Category: E-commerce | Date: 2001-09-06 |
Whilst the use of the Internet in India is at its most primitive stage, the development of the Web Market has started to grow rapidly.
People locally and globally are excited with this development. In the last few months alone, there has been investment of more than half a billion dollars in several dot coms. It has been predicted that this growth will increase more rapidly in the near future, and the amount invested will be in the billions.
India, the second largest populated country on earth, boasts one of the worlds largest and most profitable consumer markets. Which has made it a favourable destination for BtoC (business to consumer) and BtoB (business to business) online trade over the past two years. Other factors for the attractiveness of the Indian market are low cost set ups, abundance of keen labour, much skilled and unskilled human resource and most important, a great demand.
Unfortunately, with the positive comes the negative, there are equally many hard liners who believe that this growth die very soon, fortunately this is the catalyst for competition, and that enhances growth.
Indian companies face many obstacles to survive in the Indian Market, least of which are the many legal formalities.
Instability of governments threatens major mergers and joint ventures in India.
Poor infrastructure acts as a barrier to development. Poorly maintained telephone lines and network connections present a barrier to Internet development; unlike computerization itself, in contrast, a high flyer on the development stage.
Existing bandwidth meets only 60% of current demand. There is a highly superstitious user base in India, with a demand for horoscope sites and vastushastra; while, on the other side of the coin, zero-use is noticed due to illiteracy and poverty; realistic erratic demands dont justify universal supply in India.
Another obstacle to cross is the cultural barrier. The development of the internet has given a broader scope to the development of pornography for example. This has affected less culturalistic countries around the world, so India must be very concerned. Only a short while ago, Indias women were on the road protesting the "Miss World" event in Bangalore, because participating women were photographed in bikinis and swim suits.
When Indian people get excited over a development it becomes contagious, a good idea spreads very quickly, but it is easily replaced by another good idea. A few years ago every second person talked about opening an STD/ISD public telephone booth. One can now see these booths on every corner of the street. Later many booths were closed or converted into another business type. Hence there would probably be no surprise, if, in the future allot of current web companies disappeared or converted into physical retail shops.
While working for the web hosting company, M6.net - http://m6.net I have seen a closure of a Delhi based Internet mall within 3 months of its existence. Said the online store owner, when asked the reason for closure, "People doubt whether the quality of products supplied will be the same as is shown or described on the Internet. Few people have credit cards and most of them dont want to use them online".
This initial struggle with the internet is not uncommon, every region, including the United States, Australia, UK, Europe, and until recently Asia, amongst many, have experienced the birth of the Internet in their own neighbourhoods. It is just Indias turn. To the positive element, I say press on and you will be the first and hence the most dug in. To the negative element, I say "we will see you later when we are established and you are in need of our help".
About the Author
Alec Ellis
:To contact see details below.
webmaster@allnetcities.com
http://www.allnetcities.com
People locally and globally are excited with this development. In the last few months alone, there has been investment of more than half a billion dollars in several dot coms. It has been predicted that this growth will increase more rapidly in the near future, and the amount invested will be in the billions.
India, the second largest populated country on earth, boasts one of the worlds largest and most profitable consumer markets. Which has made it a favourable destination for BtoC (business to consumer) and BtoB (business to business) online trade over the past two years. Other factors for the attractiveness of the Indian market are low cost set ups, abundance of keen labour, much skilled and unskilled human resource and most important, a great demand.
Unfortunately, with the positive comes the negative, there are equally many hard liners who believe that this growth die very soon, fortunately this is the catalyst for competition, and that enhances growth.
Indian companies face many obstacles to survive in the Indian Market, least of which are the many legal formalities.
Instability of governments threatens major mergers and joint ventures in India.
Poor infrastructure acts as a barrier to development. Poorly maintained telephone lines and network connections present a barrier to Internet development; unlike computerization itself, in contrast, a high flyer on the development stage.
Existing bandwidth meets only 60% of current demand. There is a highly superstitious user base in India, with a demand for horoscope sites and vastushastra; while, on the other side of the coin, zero-use is noticed due to illiteracy and poverty; realistic erratic demands dont justify universal supply in India.
Another obstacle to cross is the cultural barrier. The development of the internet has given a broader scope to the development of pornography for example. This has affected less culturalistic countries around the world, so India must be very concerned. Only a short while ago, Indias women were on the road protesting the "Miss World" event in Bangalore, because participating women were photographed in bikinis and swim suits.
When Indian people get excited over a development it becomes contagious, a good idea spreads very quickly, but it is easily replaced by another good idea. A few years ago every second person talked about opening an STD/ISD public telephone booth. One can now see these booths on every corner of the street. Later many booths were closed or converted into another business type. Hence there would probably be no surprise, if, in the future allot of current web companies disappeared or converted into physical retail shops.
While working for the web hosting company, M6.net - http://m6.net I have seen a closure of a Delhi based Internet mall within 3 months of its existence. Said the online store owner, when asked the reason for closure, "People doubt whether the quality of products supplied will be the same as is shown or described on the Internet. Few people have credit cards and most of them dont want to use them online".
This initial struggle with the internet is not uncommon, every region, including the United States, Australia, UK, Europe, and until recently Asia, amongst many, have experienced the birth of the Internet in their own neighbourhoods. It is just Indias turn. To the positive element, I say press on and you will be the first and hence the most dug in. To the negative element, I say "we will see you later when we are established and you are in need of our help".
About the Author
Alec Ellis
:To contact see details below.
webmaster@allnetcities.com
http://www.allnetcities.com
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