Business owners and entrepreneurs are increasingly turning to the internet in a bid to grow their companies as more people switch online in Asia, Latin America and other emerging markets.
Lamudi Global managing director Paul Philipp Hermann observed that the online real estate sector, in particular has been the beneficiary of this trend, as “house-hunters in the emerging markets turn to property platforms to find their dream home.”
But while the internet is increasingly integrating in everyday life in these countries, the speed of web connectivity in these regions still lags significantly behind more developed markets.
On a global scale, the number of Internet users worldwide hit an estimated 3.2 billion in 2015, or about 43 percent of the world’s population. Of these, two billion web users are based in the emerging markets, according to the International Telecommunication Union (ITU).
This means that for every Internet user in the developed world, there are two in developing countries.
Yet significant disparities in access remain. Figures from the ITU show that 34 percent of households in developing countries have Internet access. In developed countries, 80 percent of households have an Internet connection.
Opportunities knocking?
Not to worry, said Hermann. True, internet usage in the developed world significantly outstrips that in the emerging markets. But the fast-growing internet penetration rate outside of the west “presents an opportunity for online businesses operating in Asia, Latin America, the Middle East and Africa.”
Also, while shopping for clothes or searching for property online have been common practice in developed markets for some time, these tasks are now catching on in emerging countries.
“Recent research shows that online platforms are becoming the primary tool to find real estate to buy or rent in countries in Asia and Latin America,” Hermann said. “In the Philippines, a survey of agents and brokers revealed that 91 percent of real estate professionals observed a significant increase in online inquiries during 2015.”