Page 95 - ICE BUSINESS TIMES January 2020

industry. Globally, businesses in all
E-Commerce industries are including e-commerce
in their business models to avoid
Our upcoming star the same fate as Borders.
In Bangladesh, many businesses
have reaped the benefits of
Commercialization of the internet Barnes & Noble Inc., founded in e-commerce. Over 50,000 people are
in the 1980s and 1990s forced 1886, is the largest physical actively engaged in e-commerce and
traditional market leaders of the bookstore chain in America. It within the next 10 years, the
old economy to innovate, as they opened its own online bookstore number of people to be employed in
were threatened by new entrants in 2009 and introduced its own this sector is forecasted to be about
who seized the new technological e-reader, Nook, to compete with one million. In fact, the e-commerce
opportunities. There are Amazon’s Kindle. market is estimated to be worth
countless examples of online Meanwhile, Borders Group Inc., over 110 million USD
businesses disrupting their an international bookstore chain (approximately 925 crore taka).
respective industries, such as founded in 1975, failed to adopt Furthermore, the e-commerce sector
Uber and Apple iTunes. But an technology like its competitor has attracted Foreign Direct
unexpected instance of an Barnes & Noble and it filed for Investment (FDI), for instance from
e-business forcing market leaders bankruptcy in 2011. It failed to China’s Alibaba Group which
to become its followers is recognize that demand for bought Daraz.com, India’s MoMagic
Amazon.com and its strategy in e-books are growing in the U.S. Technologies have launched
the publishing industry. and Europe, in fact, digital trade Pickaboo in Bangladesh and Pathao
Amazon is the world’s largest book sales exceeded physical had once received investment from
diverse online retailer that began trade book sales in the U.S. since Indonesia’s Go-Jek. Traditional
as an online bookstore in 1994. 2011. The case of Amazon, brick-and-mortar stores have
Currently, 70% of e-book sales are Barnes & Noble and Borders experienced significant growth in
through Amazon, which is the shows how the rise of sales through social media websites
largest global e-book distributor. e-commerce can change an such as Facebook, especially for
clothing items, jewelry and
cosmetics. A survey of 81
companies revealed that those
which sold single products had seen
a 16% increase in sales through
online channels, while companies
selling multiple products online
experienced almost 25% revenue
growth.
Of course, there are certain
challenges that must be overcome
for e-commerce, outsourcing and
other IT-based industry to flourish
at its full potential. Firstly, there is
an urban-rural divide due to poor
internet connectivity in rural areas,
a significant obstacle as 65% of the
population resides in rural areas.
Secondly, all economic and
technological growth must be
pursued in a sustainable manner
for the sector to survive in the
long-term. Development of any kind
should be done without disrupting
the natural environment.
Businesses as well as the
government will need to come
together to address these issues
and ensure further growth in the
technological revolution.

89
www.ibtbd.net