Europe lacks internet innovation and will not catch up with the US in the e-commerce services sector for at least the next two years, despite the rapid increase in connections.
According to Cathy Tornbolm, analyst at Dataquest, although Europe has experienced explosive growth in internet connections over the past year, it will continue to lag behind the US in e-commerce adoption for the foreseeable future. She said the lack of innovation in Europe was one factor to blame.
She said: 'Can anybody show me one example of a groundbreaking European Website? 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.'
Tornbolm added that financial services, of all the niche sectors, will spend the most on e-commerce related services over the next few years.
She said e-commerce will have the greatest impact on markets where the whole business process will be restructured.
'Financial services will spend the most on e-commerce, closely followed by discrete manufacturing and the wholesale and retail trade,' she said.
'However, with about 800 European banks, all with Web presence, they are going to have to work out how to differentiate themselves to survive.'
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