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eMarketer Report: Online Retailers Should Look to Canada for New Opportunities


NEW YORK, NY -- 12/09/2004 -- A new eMarketer report suggests US retailers looking for new opportunities in the online space would be wise to consider setting up shop in the Canadian market.

The report, titled Consumer E-Commerce in Canada: Firing Up the Internet Economy Growth Engine, projects e-commerce revenues in Canada will increase consistently through 2007, reaching nearly $3.8 billion this year. In 2005, the market will see a 25% increase to $4.7 billion, then another 22% increase in 2006.

“Canada is among the top countries worldwide in Internet usage and broadband adoption rates, but to date that has not translated into e-commerce leadership,” said eMarketer Senior Analyst Jeffrey Grau, the author of the report. “The country’s slow adoption of e-business technology combined with regulatory complications that invariably come when purchasing goods from foreign entities have created an unfavorable environment for US firms trying to engage in Canadian online commerce.”

To encourage Canadians to purchase online, Grau suggests US retailers establish Canadian subsidiaries that would allow consumers to avoid costly tariffs, or set up joint ventures with existing Canadian retailers that leverage US online expertise but maintain Canadian branding.

“Not only would Canadian retailers benefit from such efforts, but so would the Canadian economy in general,” Grau said. “With Canadian SMEs having trouble attracting and retaining qualified IT professionals, skilled US professionals would be in great demand.”

About eMarketer

eMarketer, the world’s leading aggregator of e-business and Internet statistics, provides objective market projections and analysis to online professionals in more than 140 countries worldwide. eMarketer’s eStat Database is the most comprehensive compilation of up-to-date e-business and online marketing statistics in the world.

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