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

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