CReATION: China consumers gripped by Internet fever as digital age arrives: ACNielsen

The digital age has arrived in China, according to the latest ACNielsen China Millennium Report, which identifies strong growth in the adoption of Internet and mobile communications devices across major cities such as Guangzhou, Shanghai and Beijing. In 1999, ownership of computers doubled in Shanghai and Guangzhou, reaching 12 per cent and 20 per cent respectively. Computer ownership in Beijing reached 18 per cent, representing an aggressive 60 per cent growth. "In this new economic era for China, information is wealth, and Chinese consumers have been keen to accumulate this new wealth," said ACNielsen chief operating officer Asia/Japan Frank Martell. "Ownership of computers and mobile phones in China is growing fast, but still lags behind developed markets such as Hong Kong and Singapore." Mr Martell said ACNielsen was forecasting rapid development of information technology in China, with the extensive market attracting investment and talent from Greater China, Europe and the US. The Millennium Report showed the number of Internet users in Beijing, Shanghai and Guangzhou hit 1.2 million (seven per cent) in May '99. However, the Internet boom was by no means limited to these citites: in the top 30 cities across China, there were more than three million Internet users, representing a penetration rate of six per cent. In Xiamen, the number of Internet users jumped from 8,000 in 1997 to 45,000 in 1999, an increase of almost six-fold, making the coastal city the leading city in Internet usage, with 12 per cent penetration. "In view of the abundance of information and the rapid growth of the consumer market, computers and mobile phones are becoming more indispensable to people's daily lives," said ACNielsen director of business development, North Asia, Steve Garton. Internet usage is catching on particularly quickly with China's younger generation. While ACNielsen figures show around 70 per cent of Internet users across Asia-Pacific to be between the ages of 15-34, the same age group in China accounts for more than 75 per cent of 'Net users, Mr Garton said. Email remains the major reason for using the Internet, followed by 'Net surfing. In Beijing, Shanghai and Guangzhou, 74 per cent of users have used email and 58 per cent have viewed websites, while 33 per cent have read newspapers online. Slightly over 80 per cent (seven per cent) of users in the three key cities have never purchased a product on the 'Net, showing vast potential for greater ecommerce development. White collar workers form the majority of Internet users - 85 per cent of males in the top three cities are more likely to go online than their Asian counterparts, accounting for 70 per cent of users. This contrasts with countries such as Singapore and New Zealand, among the most wired places in Asia-Pacific, where females account for almost half of the 'Net population.

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