PRESSEMITTEILUNG

Growing competition among German B2B marketplaces - opportunities to be found in specialization (12.09.2000)

Berlin, 12 September 2000 - The B2B marketplace landscape in Germany is divided: a small number of major trading platforms are leaving the rest of the marketplaces way behind, both in terms of the transactions and the number of participants. According to the latest surveys by Berlecon Research, almost 90 percent of all B2B trade via marketplaces has been handled by only a quarter of all participants. On average, 25 percent of the marketplaces handle monthly transactions totaling around 15 million euros each, while the remaining 75 percent - on average - turn over goods totaling roughly 500,000 euros each.
This difference in size is ultimately also the result of the ongoing B2B marketplace boom. An average of two new marketplaces started up each week in Germany in the first six months of this year. The number of German marketplaces (61) identified in January 2000 by the Berlin based economic researchers has now rocketed to more than 130. There is still no end to this growth in sight: according to estimates by Berlecon Research, the virtual B2B trade in Germany will grow 10-fold to 350 billion euros by the year 2004. This means that on a long-term basis the B2B market potential in Germany is large enough for up to 720 marketplaces.
However, the pioneer era of German B2B marketplaces is over. Marketplaces now exist in almost all business areas. Says Dr. Thorsten Wichmann, CEO of Berlecon Research: "The low-hanging fruits have already been harvested. Newcomers are meeting competition in almost all fields. Especially horizontal marketplaces, which address companies in all business areas, will soon be saturated."
According to Berlecon Research, the market still has potential to offer: "We can see opportunities, particularly in strongly fragmented markets, for example, in the field of mechanical engineering and metal products, with agricultural products and in the food industry. Vertical marketplaces which have a lead and have recognized and solved industry-specific problems are promising", adds analyst Dorit Spiller. What is also required is service which extends beyond transaction handling: all the marketplaces demonstrate a pronounced trend towards more fulfillment services. For example, almost 90 percent of the marketplaces interviewed plan to introduce logistics services within the next six months. Berlecon Research believes that the marketplaces are right in doing so: "Industry-related knowledge and additional services are definitely becoming more and more important when it comes to winning new customers and retaining existing customers".
Start-ups should remain confident despite recent controversial announcements by major, old-economy companies that they would set up joint marketplaces. "Even if the announcements are more than just PR and the antitrust authorities go along with this, the advantages and disadvantages are balanced", explains analyst Dorit Spiller. "While major industry players appear with financial back-up, market strength and industry-related knowledge, start-ups are marked by more flexibility, neutrality and a technology lead."
The current report titled "B2B Marketplaces in Germany - Status quo, Opportunities, Challenges" is based on a detailed survey among 38 German marketplaces as well as an online database (http://www.berlecon.de/services/b2bdb/en) where Berlecon Research currently lists short profiles of more than 1,100 international B2B marketplaces.
Berlecon Research is a leading economic research and analysis company based in Berlin, Germany. The company, which was established in 1997 by Dr. Thorsten Wichmann researches the effects of new media and information technology. Berlecon Research analyzes new trends on the basis of intensive monitoring of markets, as well as exclusively gathered market data, while surveys focus particularly on the Internet.

Press contact:
Berlecon Research GmbH
Karen Manzano
Fax: 49 30 285296-29
E-mail: km@berlecon.de