Europe lacks Internet innovation and will not catch up with the US in the ecommerce services arena for at least the next two years, despite the rapid increase in Internet connections.
According to Dataquest analyst Cathy Tornbolm, although Europe has experienced explosive growth in Internet connections over the last year, the region will continue to lag behind the US in ecommerce adoption for the foreseeable future.
Tornbolm said she believed lack of innovation in Europe was one factor to blame.
"Can somebody show me one example of a groundbreaking European Web site. We have US examples ad nauseum. It's the lack of insight within Europe on how businesses can use the Web that is hindering development in the region," she said.
Tornbolm went on to say that financial services, of all the vertical sectors, will spend the most on ecommerce related services over the next few years. She said ecommerce will have the greatest impact on markets where the whole business process will be restructured.
"Financial services will spend the most on ecommerce closely followed by discrete manufacturing and the wholesale and retail trade," said Tornbolm. "However, with around 800 European banks all with Web presence, they are going to have to work out how to differentiate themselves in order to survive."
Analyst group IDC said earlier this week that it did not expect Europe to catch up to the US in terms of the development of ecommerce for at least three years.
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