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The Internet Economy G-20 tcm9-106842
The Internet Economy G-20 tcm9-106842
The Internet Economy G-20 tcm9-106842
David Dean
Sebastian DiGrande
Dominic Field
Andreas Lundmark
James O’Day
John Pineda
Paul Zwillenberg
3 INTRODUCTION
18 COUNTRY PROFILES
Since the day the first domain was registered in 1985, the Internet has
not stopped growing. It has sailed through multiple recessions and
one near-collapse and kept on increasing in use, size, reach, and im-
pact. It has ingrained itself in daily life to the extent that most of us
no longer think of it as anything new or special. The Internet has be-
come, quite simply, indispensible.
The scale and pace of change is still accelerating, and the nature of
the Internet—who uses it, how, and for what—is changing rapidly too.
Developing G-20 countries already have 800 million Internet users,
more than all the developed G-20 countries combined. Social net-
works reach about 80 percent of users in developed and developing
economies alike. Mobile devices—smartphones and tablets—will ac-
count for four out of five broadband connections by 2016.
The Internet has moved into the second half of the chessboard. (See
Exhibit 1.) It has reached a scale and level of impact that no business,
industry, or government can ignore. And like any technological phe-
nomenon with its scale and speed, it presents myriad opportunities,
which consumers have been quick and enthusiastic to grasp. Business-
es, particularly small and medium enterprises (SMEs)—the growth en-
gine of most economies—have been uneven in their uptake, but they
are moving online in increasing numbers and with an increasingly in-
tense commitment.
From developed to developing markets From fixed to mobile From basic content to a
Internet users in the Consumer broadband data explosion
G-20 countries (millions) connections (millions) Global Internet traffic
(exabytes per year)
238
2005 746
total
508 30
167
Fixed connections
Developed markets
Mobile connections
Developing markets
573
672
2015 2,062
total
2,707
total 966
1,390
2,134
Meanwhile the rice pile on the next square keeps getting bigger.
Note
1. The Group of 20 major economies comprises Argentina, Australia, Brazil, Canada,
China, the EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi
Arabia, South Africa, South Korea, Turkey, the U.K., and the U.S.
Germany U.S.
70
Chinese social network
growth is exploding South Korea
60
Sources: Economist Intelligence Unit; comScore; Google; Trendstream; eMarketer; local telco reports; BCG analysis.
Note: Data reflect 2011 figures; where unavailable, 2010 figures were used; Saudi Arabia not included.
India Indonesia
0
20 40 60 80
2010 GDP per capita ($thousands)
Sources: Economist Intelligence Unit; International Monetary Fund, ITU; Speedtest.net; Gartner; Ovum; World Bank; Pyramid Research; United Nations;
World Economic Forum; comScore; Magnaglobal; Euromonitor; BCG analysis.
Note: The scores of several countries are estimates based on incomplete data.
Exhibit 4 | The Internet Currently Accounts for 4.1% of GDP in the G-20 Countries
Sources: Economist Intelligence Unit; Organisation for Economic Co-operation and Development (OECD); country statistical agencies; BCG analysis.
Source: Economist Intelligence Unit; Organisation for Economic Co-operation and Development (OECD); country stastical agencies; BCG analysis.
Exhibit 6 | Online Retail Is Expected to Account for Up to 23% of Total U.K. Retail in 2016
U.K. 23.0
Germany 11.7
Australia 8.9
South Korea 8.1
8.5 Developed market average
Saudi Arabia 8.0
Italy 8.0
U.S. 7.1
Japan 6.8
France 6.7
G-20 1 6.0
Canada 5.3
India 4.5
Brazil 4.3
China 2 3.4
Russia 3.2 3.2 Developing market average
Argentina 2.9
Mexico 1.6
South Africa 1.5
Turkey 1.1
Natives Players Laggards Aspirants
Indonesia 0.3
Sources: Economist Intelligence Unit; Organisation for Economic Co-operation and Development (OECD); country stastical agencies; BCG analysis.
1
This figure does not include the EU-27.
2
This figure reflects business-to-consumer retail only.
any given moment. Retailers of all stripes Taobao in 2010 than at China’s top-five brick-
face an especially fast-changing and increas- and-mortar retailers combined.
ingly competitive environment in the years
ahead. With the rapid growth of e-commerce The Internet is having a big impact on how
and its potential to disrupt both the top and enterprises do business and interact with one
bottom lines, retail may be ripe for a transfor- another, too. Cloud-based data storage, inte-
mation similar to the one seen in media. A grated procurement systems, and “enterprise
multichannel offering that captures sales social networks” that facilitate communica-
wherever they occur will become a “must tion within and among organizations in real
have” for most businesses. time are helping companies address a host of
procurement, coordination, communication,
Online advertising, a $65 billion business in and fragmentation issues. With spending in
the G-20 in 2010, is forecast to grow 12 per- the $3 trillion range, both the U.S. and Japan
cent a year to almost $125 billion in 2016. In lead the world in business-to-business e-com-
countries with more developed Internet econ- merce, but penetration is picking up in other
omies, 15 to 30 percent of advertising spend- countries. South Korea’s percentage of busi-
ing has migrated online. Online advertising ness-to-business e-commerce is approaching
spending in the U.K. overtook spending on 50 percent, as is Japan’s.
television advertising in 2011—and it now
exceeds spending on all other media cate-
gories.
0 0 0
18–24 25–34 35–44 45–54 55+ 18–24 25–34 35–44 45–54 55+ 18–24 25–341 35–44 45–54 55+
0 0 0
18–24 25–34 35–44 45–54 55+ 18–24 25–34 35–44 45–54 55+ 18–24 25–34 35–44 45–54 55+
Age categories
Source: BCG survey.
Note: Value comparisons are weighted by income (excluding the highest and lowest levels by country) to minimize bias.
1
The figure for Japan’s 25–34 category is estimated (base size).
Exhibit 9 | SMEs That Make Extensive Use of the Web Grow Faster
Historical three-year sales growth
20
15 8 5
25
10 20 19
13 17 22
9 12
0
–5
(%)
Germany U.S. France South Korea
30
20
10 18 14 3
10 10 7
4 15 6 11
0
–5 –5
Source: Survey of approximately 4,700 SMEs; BCG analysis. High-Web SMEs1 Low-Web and No-Web SMEs1
Note: Figures for some countries may not add up to the totals due to rounding.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
Brazil and China have higher percentages of ...and generally higher percentages of SMEs
High-Web SMEs... engaging consumers online
Percentage of SMEs by Web involvement Percentage of SMEs using Internet activity to engage consumers
53
Website 51
China 35 8 30 27
72
71
Online 61
advertising
71
41
Brazil 27 8 36 29 Blogging 38
22
56
Social 43
networking 39
66
U.K. 23 7 54 16
57
E-commerce
49
Sources: Survey of approximately 1,500 SMEs; IDC; Organisation for Economic Co-operation and Development (OECD); Brazilian Internet Steering
Committee; China Network Information Centre; Internet & Mobile Association of India; Zinnov; MARS Indonesia.
Note: Values were adjusted for Internet penetration rates in each country and weighted to reflect an equal distribution of company sizes.
not only boast higher percentages of high- Most of these barriers must be hurdled by the
Web SMEs than their developed-market SMEs themselves. But policymakers should
counterparts, but their SMEs are also substan- take note that access issues and government
tially more adept at moving beyond Internet regulations were cited as impediments by
marketing to exploit the Web’s facility for one in five SMEs in developed markets—and
driving sales through more intensive custom- by two in five in developing economies.
er interaction. These are areas where governments may
have opportunities to lend a hand and can
The barriers keeping SMEs from engaging reap the benefits of increased economic
more broadly or deeply online fall into five growth and job creation.
general categories: poor access to the requi-
site technology, lack of capabilities, lack of re-
sources, doubt over the potential returns, and
an unfavorable business environment. Not
surprisingly, access problems and an unfavor- Note
able business environment were cited far 1. High-Web companies use a wide range of Internet
tools to market, sell, and support customers, interact
more often by SMEs in developing markets with suppliers, and empower employees; medium-Web
than by their developed-market counterparts. businesses market or sell goods or services online;
Almost half of SMEs in India and Indonesia low-Web businesses have a website or a social network-
ing site; no-Web businesses do not have a website.
cited “local business culture” as a significant
impediment; one-third of Chinese SMEs said
that they are held back by lack of access to
computers. Inadequate staff knowledge and
time were named the biggest barriers in Ja-
pan, and about one-quarter of U.S. and U.K.
firms reported a lack of necessary financial
resources.
COUNTRY PROFILES
I n this section, we feature a series of
detailed profiles illustrating Internet
economic activity across the G-20. For each
GDP, an illustration of how consumers are
using the Internet and what they value, and
an assessment of use by—and impact
economy, we have provided information on on—small and medium enterprises.
the impact of the Internet on commerce and
2016
Comparison of Internet economy with
traditional industry sectors (percentage
of GDP)
2010
Agriculture, forestry, and hunting
spending
Education and health services
TOTAL
28 Logistics and communication
Public administration
2
18 Financial transactions
TOTAL 3 Investment
Construction
8
5 Consumption Community services
Mining
Net exports --3
--1 Hotels and restaurants
Percentage of GDP Utilities
Argentina Argentina Fishing
2.0 3.3
4.1 5.3 2.0
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; INDEC; CACE; IEMR; company reports; World Bank; World Trade Organization; AméricaEconomía; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
$9 Research online,
billion purchase offline
$2 (2.9%) 2010
billion
(1.4%) $568
$9 per
Online 2016 billion online
retail 2010 (5.9% of
user
total retail)
Total
retail
45.8
2016
32.2
6.7 7.7 10.0
4.5
3.1
$0.3 40.0% $1.9
billion billion
CAGR
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; INDEC; CACE; IEMR; company reports; World Bank; World Trade Organization; AméricaEconomía; BCG analysis.
Note: Percentages may not total 100 due to rounding.
2016
GDP contribution Real estate
Financial services
($billions) and insurance
Wholesale and retail trade
Government
2010
spending 14 Manufacturing
Mining
17 Construction
Professional, scientific,
9 and technical services
Health care
15 Investment TOTAL Logistics
61
TOTAL 50 Public administration
Education and training
41 29 Consumption
Information and telecommunications
Administration
–12 Net exports --19 Hotels and restaurants
Agriculture
Percentage of GDP Utilities
Australia Australia Arts, entertainment, and recreation
3.3 3.7
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Australian Bureau of Statistics; Forrester Research; IEMR; Australian Communications and Media Authority; company reports; National
Broadband Network; BCG analysis.
Note: Percentages may not total 100 due to rounding.
2016
Comparison of Internet economy with
traditional industry sectors (percentage
of GDP)
8
GDP contribution Public and personal
services
($billions) 21
2010
Government Manufacturing
spending Wholesale and retail trade,
hotels, and restaurants
4 Real estate and business
services
TOTAL
14 Investment 76 89 Public administration
Financial services and insurance
TOTAL
46 34 Agriculture
Consumption
Construction
--6 Net exports Logistics
--16
Mining
Percentage of GDP
Brazil Brazil Electricity, gas, and water
2.2 2.4
60.3
2016
10.1 15.6 17.4
7.5 2.9
3.5 $1.7 14.2% $3.7
billion CAGR billion
$154
Annual value What do E-mail
consumers
value?
$1,287 $152
$1,472 Consumer
surplus
General search
Perceived
value
$131
$185 Online banking
Cost and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
78 76 72 60 59 43 24 12 8
Satellite Alcohol Fast food Coffee Chocolate Exercise Car Sex Shower
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Brazilian Census Bureau (IBGE); EC; IMRG; ITU, U.K. Office for National Statistics (ONS); IE Market Research; CETIC; Teleco; CGI/ICT;
Faraban; BCG analysis.
Note: Due to rounding, perceived value does not total consumer surplus plus cost.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage) 1 jobs during the last three years 1
employment
98 95
High-Web 20
77
53
Medium-Web
dium-Web 6
20 Low-Web and
No-Web 12
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Brazilian Census Bureau (IBGE); EC; IMRG; ITU, U.K. Office for National Statistics (ONS); IE Market Research; CETIC; Teleco; CGI/ICT;
Faraban; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-
Web businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a
website.
GDP contribution
($billions) Government
2016 Financial services,
insurance, and real estate
Manufacturing
spending 13
2010
Wholesale and retail trade
Health care and social services
29 Public administration
11 Construction
Education services
TOTAL
22 Investment 73 Professional, scientific, and technical services
Logistics
TOTAL 51
48 Mining, oil, and gas extraction
27 Consumption Information and cultural industries
Administrative and support
--12 Net exports --20
Utilities
Hotels and restaurants
Percentage of GDP Agriculture, forestry, and fishing
Canada Canada Arts, entertainment, and recreation
3.0 3.6
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; eMarketer; Statistics Canada; Retail Council of Canada; Industry Canada; AXCO; IEMR; H2; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; eMarketer; Statistics Canada; Retail Council of Canada; Industry Canada; AXCO; IEMR; H2; BCG analysis.
Note: Percentages may not total 100 due to rounding.
2016 27
Comparison of Internet economy with
traditional industry sectors (percentage
of GDP)
2010
Mining
spending
321 Construction
Logistics
TOTAL Financial intermediation
12 852 Real estate
Public and social organizations
55 Investment Education
62 Consumption Electricity, gas, and water
TOTAL 412 Information and communications technology (ICT)
326 Hotels and restaurants
197 Net exports
Leasing and business services
Health care, social security, and social services
Services to households
Percentage of GDP Scientific research and technical services
China China Arts, entertainment, and recreation
5.5 6.9
4.1 5.3
5.5
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Chinese government; iResearch; China Information Almanac; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
$176
billion $246 Research online,
(3.4%) purchase offline
billion
(4.7%) 2010
$10
billion $62
(0.4%) billion
Online $213
retail (C2C)
(2.5%)
$96 per
2016 billion online
user
Online
retail (B2C) 2010 (4.2% of
total retail)
Total retail
45.8 2016
25.4
11.9 18.0
7.9
2.4
6.6 $10.9
$2.8 25.1% billion
billion CAGR
$53
Instant messaging
Annual value What do
consumers
value?
$451 $47
$598 Consumer
surplus
Online shopping
Perceived
value
$147 $46
Cost Online banking
and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
86 85 82 79 78 56 45 37 36
Alcohol Coffee Chocolate Satellite Fast food Car Exercise Shower Sex
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Chinese government; iResearch; China Information Almanac; BCG analysis.
59
Medium-Web
dium-Web 20
80 Low-Web and
No-Web 9
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Chinese government; iResearch; China Information Almanac; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2
This percentage reflects fewer than 10 responses from no-Web SMEs.
2010 TOTAL
105
Public administration
Construction
14 Logistics
67
28 Investment Education
TOTAL
Financial services
73 Consumption
42 Hotels and restaurants
Agriculture
--10 Net exports --12 Food, beverages, and tobacco
Percentage of GDP Metals
France France Utilities
2.9 3.4
4.1 5.3 2.9
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; EC; H2; IE Market Research; IDS; INSEE; company reports; Eurostat; Forrester Research; AXCO; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
7.0 $3.2
$2.3 5.6% billion
billion CAGR
$597
Annual value What do E-mail
consumers
value?
$4,453 $570
General search
$4,788 Consumer
surplus
Perceived
value
$420
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
86 77 69 66 61 42 23 16 5
Fast food Satellite Alcohol Chocolate Coffee Exercise Car Sex Shower
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; EC; H2; IE Market Research; IDS; INSEE; company reports; Eurostat; Forrester Research; AXCO; BCG analysis.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage)1 jobs during the last three years 1
employment
96
High-Web 10
87
65
56 60
Medium-Web
dium-Web 6
Low-Web and 7
No-Web
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; EC; H2; IE Market Research; IDS; INSEE; company reports; Eurostat; Forrester Research; AXCO; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2016
traditional industry sectors (percentage
of GDP)
2010 14
spending 39
Wholesale and retail trade
Health care and social work
TOTAL Public administration
31 Investment 157
95 Logistics
TOTAL
100 Education
59 Consumption
Construction
8 Financial services
--5 Net exports Utilities
Percentage of GDP Hotels and restaurants
Germany Germany Mining
3.0 4.0
4.1 5.3 3.0
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; EC; Eurostat; Forrester Research; H2; IE Market Research; AXCO; DB Research; FBS; GfK; IDC; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; EC; Eurostat; Forrester Research; H2; IE Market Research; AXCO; DB Research; FBS; GfK; IDC; BCG analysis.
Note: Percentages may not total 100 due to rounding.
$438
Annual value What do E-mail
consumers
value?
$3,487 $389
General search
$3,857 Consumer
surplus
Perceived
value
$362
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
89 77 77 70 55 45 23 16 10
Fast food Satellite Alcohol Chocolate Coffee Exercise Car Sex Shower
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; EC; Eurostat; Forrester Research; H2; IE Market Research; AXCO; DB Research; FBS; GfK; IDC; BCG analysis.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage)1 jobs during the last three years 1
employment
93
High-Web 82
18
57
54 61
Medium-Web
dium-Web 8
Low-Web and 4
No-Web
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; EC; Eurostat; Forrester Research; H2; IE Market Research; AXCO; DB Research; FBS; GfK; IDC; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2016 11
2
Comparison of Internet economy with
traditional industry sectors (percentage
of GDP)
Agriculture
GDP contribution 32 forestry, and fishing
($billions) Financial services,
real estate, insurance,
2010
and business services
Government Hotels and restaurants
spending 108
TOTAL
242 Manufacturing
Mining
Percentage of GDP
India India Utilities
4.1 5.6
4.1 5.3 4.1
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; H2; Reserve Bank of India; Indian government; Telecom Regulatory Authority of India; NASSCOM; MediaNama; Trendstream; BCG
analysis.
Note: Some columns may not add up to total contributions due to rounding.
41.7 39.8
2016
7.7 3.4 4.6
3.5
4.0
$0.1 $0.6
billion
25.3% billion
CAGR
$48
Annual value What do E-mail
consumers
value?
$414 $46
$494 Consumer
surplus
General search
Perceived
value
$44
$80
Cost Online banking
and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
71 70 67 64 63 44 38 36 33
Satellite Alcohol Fast food Chocolate Coffee Exercise Car Shower Sex
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; H2; Reserve Bank of India; Indian government; Telecom Regulatory Authority of India; NASSCOM; MediaNama; Trendstream; BCG
analysis.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage)1 jobs during the last three years 1
employment
100 98
High-Web 19 83
25
Medium-Web
dium-Web 19
17 Low-Web and
No-Web 13
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; H2; Reserve Bank of India; Indian government; Telecom Regulatory Authority of India; NASSCOM; MediaNama; Trendstream; BCG
analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2010
Government
spending
Hotels and restaurants
TOTAL
22 Mining
1
Construction
13
5 Investment
TOTAL Services
9
3 Consumption Financial services, real estate,
and business services
Net exports --2
--1 Logistics and communications
Percentage of GDP
Indonesia Indonesia Electricity, gas, and water
1.3 1.5
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Magnaglobal; CCB; APEC; PTIK; Nielsen; IDC; Statistics Indonesia; H2;
Indikator TIK 2010; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
$2 Research online,
billion purchase offline
$0.4 (0.3%) 2010
billion
(0.1%) $16
$1 per
Online 2016 billion online
retail 2010 (0.3% of
user
total retail)
Total
retail
52.6
35.1 2016
7.0 0.6 2.1
3.9
0.8
$0.03 39.3% $0.2
billion CAGR billion
$46
General search
Annual value What do
consumers
value?
$364 $43
$459 Consumer
surplus
E-mail
Perceived
value
$36
$94
Cost
Online banking
and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
89 78 78 76 75 73 52 34 34
Alcohol Chocolate Shower Satellite Coffee Fast food Exercise Car Sex
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Magnaglobal; CCB; APEC; PTIK; Nielsen; IDC; Statistics Indonesia; H2;
Indikator TIK 2010; BCG analysis.
Note: Due to rounding, perceived value does not total consumer surplus plus cost.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage)1 jobs during the last three years 1
employment
95
High-Web
87
16
69
97
Medium-Web
ium-Web 14
57 Low-Web and
No-Web 7
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Magnaglobal; CCB; APEC; PTIK; Nielsen; IDC; Statistics Indonesia; H2;
Indikator TIK 2010; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2016
and business services
($billions) Manufacturing
2010
Public administration and defense
14 Health and social work
Construction
7 Financial services
TOTAL
14 Investment 83 Education
70 Travel and tourism
TOTAL
43 31 Consumption Restaurants
Agriculture
--9 Net exports --9 Utilities
Logistics
Percentage of GDP Communications
Italy
Italy Mining
2.1 3.5
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Italian National Institute of Statistics (Istat); Politecnico di Milano (Polimi); Confindustria; Forrester Research; company reports; Assinform;
BCG analysis.
Note: Percentages may not total 100 due to rounding.
2016
of GDP)
2010
Manufacturing
Government 88
spending Real estate and business services
32 Wholesale and retail trade,
hotels, and restaurants
80 TOTAL Public administration
372
TOTAL Investment 271 Logistics and communications
258
163 Construction
Consumption
Finance and insurance
4.7 5.6
4.1 5.3 4.7
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Japanese government; IDC; FCR; Nomura Research Institute; Nielson; Japan External Trade Organization ( JETRO); Dentsu; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
$158
$89 billion Research online,
(6.8%) purchase offline
billion 2010
(4.3%)
$1,387
$139 per
Online 2010 2016 billion online
user
retail (6.7% of
total retail)
Total
retail
50.4 2016
13.8 21.6 26.3
8.1
4.1
$7.0 3.7% $8.7
2.0 billion CAGR
billion
$148
Annual value What do E-mail
consumers
$679 value?
Consumer $142
surplus
$1,446 General search
Perceived
value
$767 $104
Cost
Online banking
and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
86 86 85 74 70 60 56 44 17
Satellite Chocolate Fast food Coffee Alcohol Exercise Sex Car Shower
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Japanese government; IDC; FCR; Nomura Research Institute; Nielson; Japan External Trade Organization ( JETRO); Dentsu; BCG analysis.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage)1 jobs during the last three years 1
employment
94
–3 High-Web 73
54
57
–4 Medium-Web
20 –10 Low-Web and
No-Web
SMEs’ percentage of
private-sector turnover High- Medium- Low-Web and
Web Web No-Web
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Japanese government; IDC; FCR; Nomura Research Institute; Nielson; Japan External Trade Organization ( JETRO); Dentsu; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2010
Government
spending Financial services,
insurance, real estate,
and business services
TOTAL
0 24 61 Mining
9 Investment Construction
TOTAL
26 9 Consumption Logistics and communications
18
7 Net exports
Public and personal services
2.5 4.2
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Banco de México; INEGI; company reports; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
74.6 2016
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Banco de México; INEGI; company reports; BCG analysis.
Note: Percentages may not total 100 due to rounding.
2016 3
Comparison of Internet economy with
traditional industry sectors (percentage
of GDP)
2010
spending Mining
Logistics and communications
TOTAL
2 75 Public administration
63 Construction
12 Investment Financial services
TOTAL Energy, gas, and water
27 18 Consumption Agriculture
Sources: Economist Intelligence Unit (EIU); Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Central Control Directorate (GKU); ITU; Datamonitor; HSE; InSales; IDC; TNS; company reports; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
53.8
2016
Sources: Economist Intelligence Unit (EIU); Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Central Control Directorate (GKU); ITU; Datamonitor; HSE; InSales; IDC; TNS; company reports; BCG analysis.
Note: Percentages may not total 100 due to rounding.
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
88 85 80 76 70 50 36 15 14
Fast food Satellite Alcohol Chocolate Coffee Exercise Car Sex Shower
navigation
Sources: Economist Intelligence Unit (EIU); Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Central Control Directorate (GKU); ITU; Datamonitor; HSE; InSales; IDC; TNS; company reports; BCG analysis.
Note: Due to rounding, perceived value does not total consumer surplus plus cost.
2016
Comparison of Internet economy with
traditional industry sectors (percentage
of GDP)
2010
spending Wholesale trade and restaurants
Construction
TOTAL
29 Financial services and real estate
2 21 Financial services nondwellings
5 Investment Logistics and communications
TOTAL
10 5 Consumption Oil manufacturing
Agriculture, forestry, and fishing
–2 Net exports --4 Social services
Percentage of GDP Electricity, gas, and water
Saudi
Saudi Arabia Mining and quarrying (nonoil)
Arabia
2.2 3.8
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD); CCB;
Saudi Arabia Central Department of Statistics and Information; Arab Advisors Group; Pyramid Research; IEMR; company reports; World Bank; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD); CCB;
Saudi Arabia Central Department of Statistics and Information; Arab Advisors Group; Pyramid Research; IEMR; company reports; World Bank; BCG analysis.
2016
traditional industry sectors (percentage
of GDP)
2010 1
Government
spending
6
TOTAL
Public administration
Wholesale and retail trade,
hotels, and restaurants
14
Logistics and communication
4 Investment
9 Personal services
TOTAL
7 4 Consumption Mining
Construction
Net exports --3
--2 Agriculture, forestry, and fishing
Percentage of GDP
South Electricity, gas, and water
South Africa
Africa
1.9 2.5
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Statistics South Africa; IEMR; Pyramid Research; World Wide Worx; company reports; World Bank; World Trade Organization; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
$4 Research online,
billion purchase offline
$2 (1.5%) 2010
billion
(1.2%) $339
$2 per
Online 2016 billion online
user
retail 2010 (1.2% of
total retail)
Total
retail
45.6
2016
23.2
5.8 3.9 8.0
9.0
12.5
$0.2 24.2% $0.6
billion CAGR billion
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Statistics South Africa; IEMR; Pyramid Research; World Wide Worx; company reports; World Bank; World Trade Organization; BCG analysis.
Note: Percentages may not total 100 due to rounding.
What do $222
consumers E-mail
Annual value value?
$211 General search
$1,215
$1,615 Consumer
Perceived surplus
value $211 Online banking
$400 and investing
Cost
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
81 80 77 74 63 49 22 13 10
Satellite Fast food Alcohol Chocolate Coffee Exercise Sex Shower Car
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Statistics South Africa; IEMR; Pyramid Research; World Wide Worx; company reports; World Bank; World Trade Organization; BCG analysis.
GDP contribution
2016 9
of GDP)
Manufacturing
($billions)
Public and personal services
2010
16
Government
spending Real estate and business services
6 Wholesale and retail trade, hotels,
and restaurants
13 Investment 58 TOTAL Finance and insurance
114
Construction
TOTAL
75 35 Consumption
Public administration
Logistics
31
20 Net exports
Agriculture
7.3 8.0
7.3
4.1 5.3
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Korea National Statistics Office; IE Market Research; Bank of Korea; Korea Internet Security Agency (KISA); company reports; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Korea National Statistics Office; IE Market Research; Bank of Korea; Korea Internet Security Agency (KISA); company reports; BCG analysis.
Note: Percentages may not total 100 due to rounding.
$96
General search
Annual value What do
consumers
$453 value?
$87
Consumer
$824 surplus E-mail
Perceived
value
$372 $74
Cost
Online banking
and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
84 83 74 70 69 50 43 41 25
Chocolate Fast food Satellite Coffee Alcohol Exercise Car Sex Shower
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Korea National Statistics Office; IE Market Research; Bank of Korea; Korea Internet Security Agency (KISA); company reports; BCG analysis.
Note: Due to rounding, perceived value does not total consumer surplus plus cost.
The Internet’s Impact on Small and Medium Enterprises (SMEs) in South Korea
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage) 1 jobs during the last three years 1
employment
94 91
High-Web 6 70
88
Medium-Web
dium-Web 13
51 Low-Web and –5
No-Web
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Korea National Statistics Office; IE Market Research; Bank of Korea; Korea Internet Security Agency (KISA); company reports; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2016 2
Comparison of Internet economy with
traditional industry sectors (percentage
of GDP)
2010
spending
Wholesale and retail
Agriculture and fishing
TOTAL
1 31 Real estate
23 Public administration
4 Investment
Construction
TOTAL Financial services
12 8 Consumption
Education
Hotels and restaurants
--1 Net exports --4 Electricity, gas, and water
Percentage of GDP Health care and social work
Turkey Turkey Mining
1.7 2.3
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Turkish Statistical Institute; Turkish Telecommunication Authority; World Economic Forum; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
$9 Research online,
billion purchase offline
$2 (1.1%) 2010
billion
(0.6%) $1,212
$37 per
Online 2016 billion online
retail 2010 (8.5% of
user
total retail)
Total
retail
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Turkish Statistical Institute; Turkish Telecommunication Authority; World Economic Forum; BCG analysis.
Note: Percentages may not total 100 due to rounding.
$68
General search
Annual value What do
consumers
value?
$323 $67
$540 Consumer
surplus
E-mail
Perceived
value
$61
$217
Cost
Online banking
and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
82 74 71 66 65 59 32 23 19
Satellite Alcohol Fast food Chocolate Coffee Exercise Car Sex Shower
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Turkish Statistical Institute; Turkish Telecommunication Authority; World Economic Forum; BCG analysis.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage) 1 jobs during the last three years 1
employment
95 88
High-Web 17
78
78
Medium-Web
dium-Web
66
10
Low-Web and –5
No-Web
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; Turkish Statistical Institute; Turkish Telecommunication Authority; World Economic Forum; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2010
Manufacturing
Financial services
26 TOTAL
Health care and social work
257 347 Construction
36 Investment
Education
TOTAL
187 Public administration
Consumption Logistics
120
Utilities
18 Hotels and restaurants
Net exports
4 Communications
Percentage of GDP Mining
U.K. U.K. Agriculture
8.3 12.4
8.3
4.1 5.3
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Eurostat; Organisation for Economic Co-operation and Development
(OECD); Magnaglobal; CCB; U.K. Office for National Statistics (ONS); H2; IMRG; IDC; GfK; IE Market Research; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Eurostat; Organisation for Economic Co-operation and Development
(OECD); Magnaglobal; CCB; U.K. Office for National Statistics (ONS); H2; IMRG; IDC; GfK; IE Market Research; BCG analysis.
Note: Percentages may not total 100 due to rounding.
$407
Annual value What do E-mail
consumers
value?
$3,372 $377
$3,753 Consumer
surplus
General search
Perceived
value
$359
$381 Online banking
Cost
and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
91 84 78 76 65 47 25 21 17
Fast food Satellite Chocolate Coffee Alcohol Exercise Sex Car Shower
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Eurostat; Organisation for Economic Co-operation and Development
(OECD); Magnaglobal; CCB; U.K. Office for National Statistics (ONS); H2; IMRG; IDC; GfK; IE Market Research; BCG analysis.
The Internet’s Impact on Small and Medium Enterprises (SMEs) in the U.K.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage) 1 jobs during the last three years 1
employment
85
High-Web 75
12
51
49 59
Medium-Web
ium-Web 7
Low-Web and 4
No-Web
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Eurostat; Organisation for Economic Co-operation and Development
(OECD); Magnaglobal; CCB; U.K. Office for National Statistics (ONS); H2; IMRG; IDC; GfK; IE Market Research; BCG analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2016
of GDP)
2010
Manufacturing
Government Wholesale and retail trade
spending 289 Finance and insurance
128 Health care
Professional, scientific
TOTAL Information and technical services
236 Investment 1,000
TOTAL Construction
684 596 Logistics
Waste management
330 Consumption Accomodation and food services
Mining
Utilities
--11 Net exports --15 Business services
Education
Percentage of GDP Agriculture
U.S. Arts, entertainment, and recreation
U.S.
4.7 5.4
5.3 4.7
4.1
G-20 G-20 Internet
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; U.S. Bureau of Labor Statistics; U.S. Small Business Administration; PC; Forrester Research; H2; Fitch; World Economic Forum; BCG
analysis.
Note: Some columns may not add up to total contributions due to rounding.
$1,926
$482 per
online
Online 2010 2016 billion
user
retail (9.6 % of
total retail)
Total
retail
$321
General search
Annual value What do
consumers
value?
$2,528 $318
$3,000 Consumer
surplus
E-mail
Perceived
value
$291
$472 Online banking
Cost and investing
Percentage of people willing to give up a key lifestyle habit instead of the Internet for a year
84 83 77 73 69 43 21 10 7
Satellite Fast food Chocolate Alcohol Coffee Exercise Sex Car Shower
navigation
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; U.S. Bureau of Labor Statistics; U.S. Small Business Administration; PC; Forrester Research; H2; Fitch; World Economic Forum; BCG
analysis.
The Internet’s Impact on Small and Medium Enterprises (SMEs) in the U.S.
SMEs’ percentage of Historical three-year sales growth Percentage of SMEs that added
private-sector of SMEs (percentage) 1 jobs during the last three years 1
employment
24
High-Web 10 18
45 48 13
Medium-Web
ium-Web 8
Low-Web and –5
No-Web
Intensity of Web usage (percentage of SMEs using the Internet for a business activity) High-Web
Low-Web
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; U.S. Bureau of Labor Statistics; U.S. Small Business Administration; PC; Forrester Research; H2; Fitch; World Economic Forum; BCG
analysis.
1
High-Web companies use a wide range of Internet tools to market, sell, and support customers, interact with suppliers, and empower employees; medium-Web
businesses market or sell goods or services online; low-Web businesses have a website or a social-networking site; no-Web businesses do not have a website.
2016
Top ten national contributions to
Internet GDP (percentage of the
Internet GDP of the EU-27)
121 U.K. 30.0
GDP contribution
($billions) 223
2010
Government Germany 16.1
spending
France 11.8
98
TOTAL
171 1,133 Italy 7.1
Investment 810
TOTAL Netherlands 5.7
619
385 Consumption
Spain 5.7
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; BCG analysis.
Note: Some columns may not add up to total contributions due to rounding.
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; BCG analysis.
Note: Percentages may not total 100 due to rounding.
Denmark
Sweden
U.K.
Netherlands
Finland
Luxembourg
Germany
France
Belgium
Austria
Ireland
Spain
Slovenia
Czech Republic
Estonia
Portugal
Poland
Italy
Hungary
Greece Natives Players Nascent Laggards
natives
Slovakia
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; BCG analysis.
Note: The index is scaled so that the geometric mean is 100 for the 34 OECD member countries. The scores of several countries were derived due to lack of
complete data. The categories of Internet intensity--nascent natives, natives, players, and laggards--are illustrated in Exhibit 3 of this report. Graph excludes
Bulgaria, Cyprus, Latvia, Lithuania, Malta, and Romania.
How the EU-27 Economies Stack Up on the Components of BCG’s e-Intensity Index
Sources: Economist Intelligence Unit; Ovum; Gartner; Euromonitor International; Organisation for Economic Co-operation and Development (OECD);
Magnaglobal; CCB; BCG analysis.
Note: The indices were scaled so that the geometric mean is 100 for the 34 OECD members. The scores of several countries were derived due to lack of
complete data. Graph excludes Bulgaria, Cyprus, Latvia, Lithuania, Malta, and Romania.
About the Authors Suruj Dutta, Ana Carolina Freire, Hay- James O’Day
David Dean is a senior partner and wood Ho, Chip Horne, Tom Hussey, Project Leader
managing director in the Munich of- Taantee Karmakar, Joe Lee, Brandon London
fice of The Boston Consulting Group. Miller, Matt Pan, Lisa Robinson, Christ-
+44 207 753 5353
Sebastian DiGrande is a partner and offer Rutgersson, Stevenlie Satryapu-
managing director in the firm’s San tra, and Marta Szczerba for their assis- o’day.james@bcg.com
Francisco office. Dominic Field is a tance.
partner and managing director in John Pineda
BCG’s Los Angeles office. Andreas The authors would like to thank Principal
Lundmark is a principal in the firm’s David Duffy and Mark Voorhees for San Francisco
Stockholm office. James O’Day is a their help in writing this report and
project leader in BCG’s London office. +1 415 732 8000
Angela DiBattista, Gary Callahan, Kim
John Pineda is a principal in the Friedman, Angela Goldberg, Sara pineda.john@bcg.com
firm’s San Francisco office. Paul Zwil- Strassenreiter, and Mary DeVience for
lenberg is a partner and managing di- contributions to its editing, design, Paul Zwillenberg
rector in BCG’s London office. and production. Partner and Managing Director
London
Acknowledgments For Further Contact +44 207 753 5353
This report is a product of BCG’s Tech- If you would like to discuss this report,
nology, Media & Telecommunications please contact one of the authors. zwillenberg.paul@bcg.com
practice.
David Dean For Further Reading
The authors are indebted to multiple The Boston Consulting Group publishes
Senior Partner and Managing Director extensively on topics related to marketing
BCG partners and colleagues for their
contributions and insights during the Munich in the digital economy. Recent examples
+49 89 2317 4150 include those listed here:
preparation of this report: Marcos Agu-
iar (Sao Paulo), Jorge Becerra (Santia- dean.david@bcg.com
Digital Manifesto
go), Jeffery Bernstein (Tokyo), Julio
A Focus by The Boston Consulting Group,
Bezerra (Sao Paulo), Vladislav Bouten- Sebastian DiGrande January 2012
ko (Moscow), Ethan Choi (Seoul), Ola-
Partner and Managing Director
vo Cunha (Sao Paulo), Tenbite Ermias Turning Local
( Johannesburg), Yucel Ersoz (Istan- San Francisco
A Focus by The Boston Consulting Group,
bul), Philip Evans (Boston), Patrick +1 415 732 8000 September 2011
Forth (Sydney), Tawfik Hammoud (To- digrande.sebastian@bcg.com
ronto), Susumu Hattori (Tokyo), Joerg The Connected Kingdom
Hildebrandt (Dubai), Nimisha Jain Dominic Field A report by The Boston Consulting Group,
(New Delhi), Carl Kalapesi (London), October 2010
David Michael (Beijing), Vaishali Ras- Partner and Managing Director
togi (Singapore), David Rhodes (Lon- Los Angeles
don), Hermann Riedl (Abu Dhabi), +1 213 621 2772
Ryoji Kimura (Tokyo), Henri Salha field.dominic@bcg.com
(Paris), Kanchan Samtani (Mumbai),
Just Schuermann (Munich), Shigeki
Andreas Lundmark
Ichii (Tokyo), Marc Vos (Milan), Sarah
Willersdorf (New York), Yukimasa Principal
Uchida (Tokyo), and Yvonne Zhou Stockholm
(Beijing). +46 8 402 4400
lundmark.andreas@bcg.com
They are also grateful to Gaby Barrios,
Patrick Böert, Jonathan Colclough,
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