Seek Pragmatic Solutions in B2B

In 2005, B2B (business to business) Internet transactions got a lot more attention. IDG, Intel and some other well-known enterprises showed great interest in the B2B market.

With statistics indicating that there are now about 100 million Internet users in China and with the improvement of the ADSL broadband environment, augmented by the passage of the Electronic Signature Act, we can see the potential in B2B business activities. But there are some problems in the e-business environment and within B2B itself that must be addressed.

Does improvement of technologies and the law mean we are entering a more pragmatic, more profitable stage?

There is no doubt that the Electronic Signature Act will add to the popularity of B2B, but we do not view the act as an important driving force in the development of e-business. Since early 2004, the Electronic Signature Act has been a hot topic, but only a few users accept it at present because of the complex technologies involved and the ignorance of users. Most users still rely upon the pre-Act rules of the B2B environment, and this discourages traders from relying upon the Internet to contract deals. Under these conditions B2B service providers should pay great attention to the needs and requirements of users and adopt more pragmatic technologies and methods.

　Even though there are more Internet users now than ever in China, the user base is still too small to form an adequate base for B2B activities. This retards the development of online trading.

Some of the limitations are:

        Insufficient IT technologies are used in domestic enterprises, especially medium and small ones. Internet applications and user skills have been popularized, but even though many enterprises have their own Web sites, they are mainly used for releasing information. Many are not properly maintained. These enterprises overlook the investment potential of their Web sites.

        It is hard to break old business habits in a short period: Every trade involves two or more parties, and if one disagrees with using the Internet, this aspect of trading cannot be used. This problem is very common with domestic Internet users.

       Poor service is offered by B2B service suppliers: Service suppliers try to bring new services to the market, but resistance is encountered. Why? Because most of the services offered are little understood by potential users. They ignore the fact that many customers don't know how to use Internet-based B2B services and need to be trained in their use. Thus, the market for B2B services is limited. 

From the above we can see that the main problem with B2B service via the Internet is its failure to compete in the market.

What service is the most attractive?

       There are many management modes in the B2B service industry, but in China it is seldom used to close a deal. The two parties to a trade use this platform mainly to exchange their information. They wrap up a trade in other ways, with reference both to logistics and payments. Here is an opportunity for Internet-based B2B service providers to enlarge their scopes.

       Service suppliers should pay much attention to the attractiveness of their services. With so many enterprises refusing to join in Internet trading, the B2B service suppliers should seek a wider trade platform for their users. This platform should be popularized in newspapers, CDs and other communication tools via the media to help users to exchange information and learn more about how to use B2B services.

        Service suppliers should offer ways for traders to meet face-to-face, especially after basic information has been exchanged between the parties to a deal. This will make Internet-based trading more easily accepted.

       B2B service suppliers should offer more commercial opportunities to users, which may become another important way to attract customers. B2B service suppliers have lots of trade information on hand after they build Internet trading platforms. They can provide enterprises with more direction to help them find proper markets for their products and gain more profit. That means B2B service suppliers should provide more consulting and advisory services.

In all, the most competitive service B2B suppliers should be comprehensive. With the anticipated rapid development of B2B services, we hope service suppliers will seek more pragmatic ways to service the growing needs of their customers and the market.