B2B, B2C transactions value grew over first three quarters of 2001. The industry can now look forward to receiving more regular updates on how Singapore's e-commerce sector is performing...
Singapore, 06 March 2001 | For Immediate Release
B2B, B2C transactions value grew over first three quarters of 2001
The industry can now look forward to receiving more regular updates on how Singapore's e-commerce sector is performing. Beginning this month, the Infocomm Development Authority of Singapore (IDA) will be releasing e-commerce transaction data from its quarterly surveys Gartner Consulting has been commissioned by the IDA to conduct the quarterly surveys. of the Business-to-Business (B2B) and Business-to-Consumer (B2C) e-commerce activities in Singapore.
The survey findings released today charts the performance of e-commerce in Singapore during the first three quarters of 2001. The findings reveal that e-commerce revenues in Singapore have grown steadily over the first three quarters of 2001. This is a clear indication that businesses have continued to engage innovative business models which leverage Internet technologies, despite weak market sentiments. Likewise, consumer spending in e-commerce remained strong with a growth rate of 13% from Q1 to Q3 of 2001.
B2B E-Commerce Sales Revenue
B2B sales revenue grew 25% from S$23.53b in Q1 to S$29.54b in Q3 while transaction volume remained constant. Sales revenue for Q2 and Q3 2001 also exceeded values forecast by companies in Q1 2001 by 4% and 6% respectively.
The Wholesale & Retail sector registered the highest growth of 68% from Q1 (S$6.84b) to Q3 (S$11.44b) while sales revenue for the Manufacturing sector declined by 45% in the same period from S$3.04b to S$1.67b. The Wholesale & Retail and Finance & Banking sectors account for more than 70% of total e-commerce sales revenue with 38.9% and 34.7% respectively.
In line with the pervasiveness of the Internet and the associated lower cost per transaction, more B2B e-commerce transactions were conducted over open networks in Q3 compared to Q1 2001.
Singapore companies derived 18% of total revenue from e-commerce in Q3 2001 which is higher than Australia (16%), Hong Kong (16%), Taiwan (14%) and South Korea (11%).
B2C E-Commerce Sales Revenue
Although B2C sales revenue dropped by 6% from Q2 to Q3, there was overall growth of 13% from S$573m in Q1 to S$648m in Q3. Transaction volumes also increased by 21% in the same period. B2C sales revenue for Q2 exceeded values forecast by companies in Q1 by 6% while the Q3 forecast was over-estimated by S$1m.
The Finance & Banking sector registered the highest growth rate of 25% from Q1 to Q3 and it accounted for 62% of total B2C sales revenue in Q3. The Wholesale & Retail sector is the second largest contributor with 14% of total sales revenue. The Manufacturing sector registered a drop of 51%.
As with the B2B sector, Singapore companies derived 16% of total revenue from B2C transactions in Q3, which is higher than Australia (11%), Hong Kong (7%), Taiwan (12%) and South Korea (9%).
The Asia Pacific was the main source of total B2B and B2C overseas e-commerce sales, accounting for more than half of the overseas transactions. Main destination countries in Asia Pacific were Australia, Hong Kong, Japan and Malaysia. The US was the single largest country source for overseas e-commerce revenue.
The survey showed that the overall e-commerce landscape in Singapore remains vibrant despite current economic climate. In view of current market sentiments, the e-commerce sales revenue growth in Q4 is estimated to be modest. The survey findings indicate that Q4 B2B transaction value is estimated to inch 1% quarter-to-quarter to S$29.92b, while B2C transaction value is estimated to edge up 4% to S$670m.
"As companies are increasingly embracing the Internet as an integral part of their business plans and strategies, the quarterly survey findings provide timely indicators to aid businesses in their planning process. We hope that the positive trends shown will encourage more companies to harness the potential of online technologies to transform their operations", said Dr Kaizad Heerjee, Assistant Chief Executive of the Online Development Group in IDA.
ISSUED BY CORPORATE COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
Notes to Editor :
Business-to-Business Electronic Commerce - refers to all forms of wholesale commercial transactions conducted over an exclusive computer-mediated network (e.g. BookNet, ShopNet, MIPS) or an open computer-mediated network (e.g. Internet and Singapore ONE), but the payment and ultimate delivery of the good or service may be conducted on or off-line.
Important exclusions: Foreign exchange, futures, derivatives, bill payments, unsuccessful online bidding, GIRO, inter-bank transfers and other financial instruments trading.
Business-to-Consumer Electronic Commerce - refers to all forms of retail commercial transactions occurring over an open network (e.g. Internet & Singapore ONE), which include online selling of goods and services directly to consumers.
Important exclusions: Online bill payments (or fund transfers) for transactions performed off-line, and unsuccessful online bidding are excluded.
About Infocomm Development Authority of Singapore
The Infocomm Development Authority of Singapore (IDA) is a dynamic organisation with an integrated perspective to developing, promoting and regulating info-communications in Singapore. In the fast-changing and converging spheres of telecommunications, information and media technologies, IDA will be the catalyst for change and growth in Singapore's evolution into a vibrant global info-communications technology centre. For more information, please visit https://www.imda.gov.sg/.
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