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NOVEMBER 2000 |
MARKET
ANALYSIS:
E-commerce Opportunities: Office Supplies SUCCESS FACTORS: The Growth of Broadband in Latin America E-STATISTICAS: It's a wireless world after all ... . |
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Mexico City Office Sao Paulo Office |
MARKET
ANALYSISE-commerce Opportunities: Office Supplies Latin America's substantial but fragmented office supplies market is ripe for a move to e-commerce as a key tool for sales and procurement. The regional market exceeded US$ 45 billion last year, and sales are growing faster than GDP. Latin American buyers have traditionally picked up their office supplies close to the office, either at small neighborhood stores or a handful of local chains. This fragmented distribution chain means high costs, poor selection and limited service. In the 1980s large American "category killers" turned their attention to Latin America and by this year they claimed 15 percent of the market. The chains have successfully exploited catalog sales to offset the disadvantage of their centralized urban locations. But they were slow to move into on-line sales. Now they face new competition from a variety of online and hybrid players. Customers have numerous options ranging from conventional e-commerce models to new on-line marketplaces backed by telecom giants or by established brick and mortar enterprises. The large chains have fared well against traditional mom and pop stores, but they are not well enough consolidated in the region to perform strongly against on-line competitors. The first round may have gone to the chains but the fight for future profits will take place in the virtual arena. To view
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market research market profile benchmarking market entry viability market trend analysis new product testing customer satisfaction studies market
intelligence market entry |
. SUCCESS
FACTORSThe Growth of Broadband in Latin America Not taking into account the limited bandwidth available to Latin American Internet users has doomed some over-designed web sites to failure. Broadband access, mainly in the form of DSL lines and cable modems, will be available in all of the region's tier I this year. Service will spread to the tier II urban market by the end of 2001. But for now, this technology is limited to elite consumers and larger businesses. It could take as long as 10 years to build a broadband infrastructure that spans every part of Latin America. The high-end consumer market will be saturated within a few years, and medium-term growth will be fuelled by small-and-medium sized businesses. Over the next few years, DSL and Cable will account for most of the subscriber growth. DSL is dominated by large and well-funded local telephone operators like Telmex, Embratel, and Telefónica. In many markets, the phone companies are content to leave residential service to the cable companies. Approximately three million homes across Latin America can probably afford a broadband connection. Cable Internet is a popular choice for SES A and B households, because they already have relatively high levels of cable TV penetration. Wireless solutions will fill the gaps left by wireline providers for anxious early adopters willing to pay a relatively high price. To view
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E-STATISTICAS
It's a wireless world after all ...Wireless teledensity overtakes wireline in Argentina, Brazil and Mexico. To view
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AMEX Avery Dennison BBDO Booz, Allen & Hamilton Citicorp International Computer Sciences Corp. Conagra |
NOVEMBER 2000
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tendencias |
With offices in
Miami,
Mexico City,
Sao Paulo |