Marketing in new information age

28 September 1998

The development of the Internet and electronic commerce will transform the way in which businesses are conducted as well as change the environment in which enterprises operate, the Secretary for Information Technology and Broadcasting, Mr K C Kwong, said.

Addressing an award presentation for marketing excellence organised by the Hong Kong Management Association and the Television Broadcasts Limited today (Monday), Mr Kwong said the global value of purchases over the Internet by consumers and businesses was forecast to grow from US$10 billion in 1997 to US$220 billion by 2001.

No business can let such an enormous opportunity drift away, he said, adding that this is particularly true for those who have set sight to expand their businesses in the increasingly connected global market.

"For small and medium-sized enterprises which comprise over 95 per cent of businesses in Hong Kong," he continued, "marketing through the Internet will be particularly advantageous since it offers an inexpensive and new channel for reaching out to the global market.

"Also, enterprises will no longer need to feel constrained by the high costs of establishing a physical presence overseas."

Mr Kwong noted that in Hong Kong, there was a phenomenal growth in the number of people using the Internet. In the past 12 months, the number of Internet accounts has been growing at some 30 per cent every six months to reach the present total of 570,000.

He said: "The rapidly growing popularity of the Internet is offering marketing professionals a completely new channel to advertise their products and services.

"Through the Internet, businesses will be able to significantly enhance their capabilities to get in touch with potential customers any time, any where in the world. With direct contact over the Internet, businesses will be able to serve their customers better by offering customised products and services to suit individual clients' needs."

Recognising the significance of the development of electronic commerce over the Internet, Mr Kwong said the Government had decided to introduce on-line delivery of public services in phases, starting from the year 2000.

"Our aim is to enable the public to transact business with the Government on-line and on a seamless basis through the use of information kiosks installed in convenient public locations, personal computers at home or in the office, telephones through interactive voice response system or interactive television," he explained.

The Government will strive to provide a favourable environment for electronic transactions to take hold in Hong Kong, he added.

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