As the Internet insinuates itself deeper into daily life, one key facet of its future role -- electronic commerce -- continues its explosive growth. Estimates of the amount of business conducted in cyberspace vary from $30 billion annually to nearly twice that. But one thing is certain: It is increasing by leaps and bounds. One study concludes that the "virtual economy" is growing 30 times faster than the real-world economy. Even sober analysts predict that by the year 2002 $1 million worth of business will be conducted online each minute.
Companies are wasting no time in responding. Worldwide, over half a million businesses have set up shop online. In the United States, 39 percent of real-world retailers have cyber-boutiques as well. One-third of online households in the U.S. have made purchases on the the Internet. Many more window-shop in cyberspace, even if they do not make the final purchase online.
Japan has been slow to catch the fever. According to the Japan Development Bank, business-to-consumer e-commerce reached $695 million in 1997, or about 0.1 percent of overall sales revenue. Yet the potential for explosive growth exists. Fourteen million people are already wired in Japan; the number should reach 27 million by 2001. Nearly 12,000 companies have set up shop in cyberspace, and Japanese consumers have been quick to use them. A majority of Internet users in this country have shopped online, a figure that even tops the U.S. Experts predict that sales will top 100 billion yen this year.