According to the Computer Industry Almanac, the worldwide Internet population this year is 934 million. In 2007, the worldwide Internet population is projected to reach 1.35 billion.
This growth in online population is attributed to increased PC penetration and telecommunications infrastructure improvements such as mobile phones and other wireless devices with Internet access. In Japan and Europe for example, wireless access to the Internet is very popular while in the United States, low cost Net appliances, like WebTV, are bringing the Internet to homes that don't even own computers; community centers, libraries and coffee houses offer free or low-cost access to all comers.
There has been a shift in demographics as well. Early adopters of new technology were classified as highly educated and affluent individuals whereas presently, there is a substantial amount of online users from third-world countries such as Bangladesh and the Philippines. The Internet is now used to communicate local, ethnic, religious and national cultures to a worldwide and international audience. This shift validates the Internet as a mainstream marketing, advertising, and research platform -- a global communications tool.
According to Bill Dunlap, chief executive officer of Global Reach, an international Web site promotion firm, "Countries of every shape and color are changing fast. Even third-world countries are gradually upgrading their infrastructures and even harnessing the Internet. For example, many Muslims are using the Net today to state their case. The Internet allows many budding entrepreneurs in poorer countries the opportunity to develop economically in ways that would have never been available to them if they were not wired. The Internet simply puts them in touch with opportunities and resources they have never had before."
With the rapid growth of online users in countries such as China (by the end of this year alone we will have seen the online population in China go from 70 million to 100 million people by this year's end) and Japan (the percentage of households in Japan using broadband is set to grow to over 70 percent by 2007, according to eMarketer), coupled with top Internet companies such as Google and Yahoo! expanding their international operations, companies must start viewing globalization as a necessity rather than a sideline.
Let's take a look at Yahoo! as an example. Yahoo! has partnered with local companies in each global operation market to gain a better understanding of local customers' preferences, local customs and business practices, brands and fulfillment. Specifically, Yahoo! Japan is a joint venture with Japan's Softbank, who is the majority stakeholder (Softbank owns roughly about 52 percent and Yahoo! Inc. somewhere around 48 percent -- AND, more importantly, Yahoo! Japan is separately listed on the Nikkei Exchange and discloses and reports its own separate earnings.)
According to Scott Morris, manager of International Public Relations for Yahoo!, Inc. "Due to Yahoo!'s strategic partnership with Softbank, Yahoo! Japan really owns that market. We in fact have a 98 percent share, and are clearly the leader and ranked #1 across every category and vertical -- even in the auctions space, where global auctions site eBay actually withdrew its business and from the market and withdrew entirely."
Online globalization is happening right now and companies, such as Yahoo! that want to stay ahead of their competitors and increase market share in global markets, must take the necessary steps.
In Thomas Friedman's book, "The Lexus and the Olive Tree," he writes "John Chambers of Cisco likes to say that the companies and countries who will thrive in this Internet economy are those who will grasp its importance first, and get wired before the rest of the world realizes that they have to change. If you do that faster than your competitors, says Chambers, there's only thing you'll have to say to them: 'Game over'."
Elizabeth M. Lloyd is the Director of Corporate Marketing for Netblue, Inc., an online direct marketing company based in Silicon Valley. Previously, Lloyd was the Director of Marketing for opt-in email provider, NetCreations, in New York City. Prior to NetCreations, Lloyd was responsible for the PR department of ValueClick, Inc.
