Spontaneous Dot-combustion.The hottest spots in the blazing web world of Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . PEDRO ASPE Pedro Carlos Aspe Armella (b. July 7, 1950 in Mexico City) is a Mexican economist. He served as secretary of finance (1988 – 1994) in the cabinet of Carlos Salinas de Gortari, where he successfully renegotiated foreign debt, gave autonomy to the central bank and promoted a , THE CHAIRMAN OF ONE of Mexico's leading investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. , is not your typical Internet booster. But the staid, 50-ish ex-finance minister of Mexico can't resist offering his advice to would-be Latin America web investors. Finance sites aimed at consumers between 15-25 years of age, he says. "That group is growing at a rate four times faster than the entire population," he notes. Aspe ASPE Assistant Secretary for Planning and Evaluation (US Department of Health and Human Services) ASPE American Society of Plumbing Engineers ASPE American Society for Precision Engineering ASPE Association of Standardized Patient Educators is just one of many web gurus visibly thrilled by the profit potential of Internet incursions in Latin America. To the mantra of "the world's fastest growing Internet market," executives are descending on the region in search of fortune. Each fantasizes about hitting a hot new niche before the behemoths stomp the players. And they are stomping. Since going public last year, Spain's Terra Networks Terra Networks, S. A., usually referred to as "Terra", is an Internet multinational company with headquarters in Spain. Part of Telefónica Group (the former Spain's public telephone monopoly and now one of the most important telecommunications companies in the world), Terra has become the 800-pound gorilla of pan-regional portals with a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of more than US$35 billion. Compatriot com·pa·tri·ot n. 1. A person from one's own country. 2. A colleague. [French compatriote, from Late Latin compatri Banco Santander Central Hispano recently flattened Patagon.com, purchasing 75% of the financial portal Financial Portal A website that provides a variety of financial data and information, acting as an information hub for clients who are individual investors requiring timely financial news and data to make their investment decisions. for $529 million. Constant rumors identify other Latin American Internet start-ups (portals StarMedia, Yupi.com and Guby Networks to name a few) as takeover targets for the incoming giants (America Online See AOL. , Yahoo, and Lycos, among others). Not to fear, though. There is still plenty of opportunity because the Internet is in its infancy. Of Latin America's 486 million people, roughly 9 million, or less than 2% of the population, are online today, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. research firm International Data Corporation. Buying and selling over the Internet in the region amounted to a measly measly said of beef, pork and mutton because infected meat has a speckled appearance thought to resemble measles (1) in humans. See also cysticercus. half a billion dollars last year--an infinitesimal in·fin·i·tes·i·mal adj. 1. Immeasurably or incalculably minute. 2. Mathematics Capable of having values approaching zero as a limit. n. 1. portion of the region's total Gross Domestic Product (GDP GDP (guanosine diphosphate): see guanine. ) of some $1.6 trillion. Finding a stellar piece of virtual real estate today could prove especially lucrative because of the Internet's rapid growth. International Data Corporation recently increased its user forecast for the year 2003 from 19 million to 30 million. Similarly, e-commerce is forecasted to surge to $8 billion by 2003. At web conferences everywhere and at the so-called First Tuesday First Tuesday is a networking forum for technology entrepreneurs, companies seeking venture capital, investors and related service providers. Founded in 1998, First Tuesday now has 38,000 members and the 10 branches across Europe host meetings on the first Tuesday every month. Network meetings--Internet executive cocktails held on the first Tuesday of each month in Buenos Aires Buenos Aires (bwā`nəs ī`rēz, âr`ēz, Span. bwā`nōs ī`rās), city and federal district (1991 pop. , Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi , Miami, Santiago and S[tilde A symbol used in Windows, starting with Windows 95, that maintains a short version of a long file or directory name for compatibility with Windows 3.1 and DOS. For example, the short version of a file named "Letter to Joe" would be LETTER~1. Then "Letter to Pat" becomes LETTER~2. {a}]o Paulo--the pundits and pros are touting what they see as the hottest Latin American spots in the web world. SPONTANEOUS DOT-COMBUSTION E-commerce euphoria. "A portal is like being a traffic cop for information. What was I going to bring to the table in that business?" says Spaniard Manuel Montero mon·te·ro n. pl. mon·te·ros A hunter's cap with side flaps. [Spanish, hunter, from monte, mountain, from Latin m , a veteran of transport company TNT TNT: see trinitrotoluene. TNT in full trinitrotoluene Pale yellow, solid organic compound made by adding nitrate (−NO2) groups to toluene. , American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. and chemical maker Olin Corp., about his decision to launch an e-commerce website instead of a plain, old portal. At the end of 1998, Montero started working full time to develop Fiera.com to sell everything from CDs to computers targeting Spanish- and Portuguese-speaking consumers in Latin America and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Hardly an original idea, but Montero thinks his execution outshines the rest of the pack. Fiera has signed deals with companies inside and outside the region--including Sony, Compaq and Toshiba-- searching for new distribution channels. Montero says these pacts allow products to be sold 15-30% cheaper on average than local retail outlets in Argentina, Brazil, Chile, Mexico, Puerto Rico and the United States The legal relationship between Puerto Rico and the United States has been described in a number of ways, ranging from "colonial possession" to "dual sovereigns." Technically speaking, Puerto Rico is a territory of the United States, subject to the plenary power of . He offers door-to-door delivery in four to six business days and guarantees satisfaction with a 15-day return policy. "No one else offers that package to the consumer," Montero says. Whether that package will be enough remains unclear. The so-called BUSINESS-TO-CONSUMER MARKET is rapidly getting crowded. In addition to Amazon, CDnow, and other major U.S. online companies, a host of Latin American entrants, from start-ups to traditional retailers, are launching sites to sell consumer products. More are entering the market every day. "Latin America is still green," says 30-year-old Fernando Arzuaga, executive director of recently launched Compras24, which aims to become the quintessential conduit for finding the best retail website for any product. "You have to seize the opportunity." The start-ups face the daunting daunt tr.v. daunt·ed, daunt·ing, daunts To abate the courage of; discourage. See Synonyms at dismay. [Middle English daunten, from Old French danter, from Latin task of creating a multinational business as well as a brand name. Submarino.com, a Brazil-based web company, has raised some $90 million to open offices across the region, provide the necessary support for sales of books, CDs and other items, acquire competitors and, most important, brand the company's name into the brains of Latin American consumers. Indeed, many new Internet See Web 2.0 and Internet2. companies would not be losing money hand over fist if they weren't spending millions on billboards, promotions and other advertising and marketing madness. Lavidaloca.com. Star power will be crucial to cutting these costs. TV personality Don Francisco At least two noteworthy people go by the name of Don Francisco:
Iglesias teamed up with two music industry executives to launch Internet entertainment site aplauso.com. MUSIC AND SPORTS WEBSITES, among others, are expected to court similar partnerships with Latin megastars like singer Ricky Martin, actress Jennifer Lopez and soccer standout Ronaldinho. Within the retail segment, music sites are growing fast and furious. In the United States, hip-hop network AKA.com merged with Mega Communications, which boasts 17 Spanish-language radio stations, to spawn online music sales site aplauso.com. It joins a lengthening music site roster that includes eritmo, fnac.com and Som Livre Som Livre is a brazilian record company that was founded in 1969 with the intention to comercialize soap opera sound tracks. They later expanded to record for national artists. . Ritmoteca has even moved aggressively to secure digital rights that will permit downloading music directly as an alternative to delivery of actual CDs and DVDs of artists throughout Latin America. The start-ups will need every technological edge available to beat back the major U.S. consumer sites. Portal StarMedia's Luis Samra, who directs strategy development of e-commerce sales in Latin America, claims most of the $170 million sold online in Latin America in 1998 went to U.S. websites. By way of example, he points out that Amazon.com is the top selling bookstore in Chile. Samra warns that the trend will increase if Latin start-ups continue to offer little variety and higher prices than retail stores. He also underscores that ecommerce start-ups specializing in the Spanish and Portuguese-speaking markets are emerging from Miami and major cities in Texas List of cities in Texas, arranged in alphabetical order. : Top - 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A
Along with U.S. websites, the top Latin American portals are pushing into e-commerce in a big way. StarMedia, for example, not only offers the standard fare of books and CDs, but it recently signed an agreement with Rx.com to supply over-the-counter medicines to the region. "UOL UOL Universo Online (Brazilian internet provider) UoL University of London UOL Ultima on Line (multiplayer role-playing game) UOL Unit of Learning UOL Upper Operating Limit UOL Underwater Object Locator , StarMedia, El Sitio, all of the portals tell you: 'Either you sell your company to us or we will squash you," says Alec Oxenford, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of auction start-up Deremate.com. "It's not true. They can't do it." The 30-year-old entrepreneur maintains his company can beat back the portals in auctions because auctions are his only focus. "For the portals, it's just one more business," he says. Nonetheless, he sold a 30% stake in Deremate to Terra Networks to secure financial firepower for the long haul. "If there is a market correction Market correction A relatively short-term drop in stock market prices, generally viewed as bringing overpriced stocks back to a level closer to companies' actual values. , they won't let their cousin [Deremate] fall," he says. Click and order. What may prove more worrisome in the short term than a major economic crash is BRICKS-AND-MORTAR companies joining the click-and-order crowd. Bruno Fiorentini general manager of Yahoo! Brazil, says leading brick-and-mortar merchants must go online to maintain their top-dog position. He describes last Christmas' rush to buy toys, music, books and clothing from U.S. websites as a wakeup call, adding that Brazilian department stores such as Lojas Americanas and Ponto Frio got the message and are going online. In Mexico, retail chain Sanborns is pushing online sales hard, as is Chile's Falabella. StarMedia's Samra, however, describes those retailers as in the minority. "The biggest merchants are still not doing anything to protect their turf," he says. The established players must walk a fine line between promoting their websites and encouraging traffic to their stores. Every Sunday Argentine music retailer Musimundo takes out a page in local newspaper Clarin to offer select CDs at half price on its website. The promotions drive traffic to the online shop, but they may be stealing business from the company's stores. While the traditional retailers struggle not to cannibalize can·ni·bal·ize v. can·ni·bal·ized, can·ni·bal·iz·ing, can·ni·bal·iz·es v.tr. 1. To remove serviceable parts from (damaged airplanes, for example) for use in the repair of other equipment of the same existing local operations, the pan-regional start-ups juggle the challenge of having neither stores nor "a local currency." To pay for items, for example, consumers need international credit cards to replace the domestic cards invalid for cross-border electronic purchases. "A lack of international credit cards is holding back e-commerce," says Greg Keough, CEO of the online investment service, Zona Financiera. In response, the Bank of Boston has created an Internet-only credit card for payment in the region. Visa International has signed agreements with StarMedia, Fiera and others web-sites to promote Visa cards as the preferred method of online payment. StarMedia also plans to give seminars to educate merchants and cardholders on the benefits of using international credit cards. In the United States, Internet security company SpendCash recently announced the launch of a "cash card" that consumers can use to pay for goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. on the web. Similar to prepaid telephone cards, the cash cards are being accepted by Spanish-language shopping site InternetMercado.com. SPONTANEOUS DOT-COM-BUSTION Other basic conditions must be satisfied before the region can meet its e-commerce potential. Those include cheaper computers and increased computer education (only 3.8% of Latin American households have PCs compared to 52% in the United States), more telephone lines and cheaper phone rates and cultural acceptance of online shopping. "Latin Americans like to touch what they buy," says Luis Anavitarte, head of the Latin America and Caribbean division for the Silicon Valley researcher Dataquest Gartner Group. Nonetheless, he adds: "The potential of e-commerce is phenomenal." Biz-to-biz buzz. Alejandro Soriano, CEO of financial services website EquityPlaza, says the web's true potential lies in bringing goods and services to a vast segment of unattended midsized companies. By the former Booz Allen Hamilton Booz Allen Hamilton, Inc., referred to as Booz Allen is one of the oldest strategy consulting firms in the world.[1] The firm formerly had two consulting divisions: WCB (Worldwide Commercial Business, also known as “The Commercial Side”) and WTB consultant's count, there are some 5 million companies in the region, of which some 1.2 million have sales between $1 million and $30 million a year. "The only access [these] companies have to capital is through family and friends," says Soriano. Soriano counts on EquityPlaza to change that. At no charge, firms that enter their financial information into the website's credit analysis system receive advice on what type of financing to seek; they can automatically send their information to a participating institution. Banco Santander Central Hispano, Banco Bilbao Vizcaya Argentaria, Citibank and Hongkong Shanghai Bank are on board with the program, hoping the system will bring increased business at reduced cost and effort. The burgeoning BUSINESS-TO-BUSINESS MARKET is awash with free matchmaking Matchmaking Matricide (See MURDER.) Kecal marriage broker whose plans are foiled by a pair of lovers. [Czech Opera: Smetana The Bartered Bride in Osborne Opera, 32] Levi, Dolly sites. They differ in service, segment or scope, but all promise a super-efficient medium for buying and selling, as well as comparative shopping, for companies willing to give them a try. Ultimately, online transactions between companies are expected to prove far larger and perhaps more lucrative than the business-to-consumer market. In fact, of the $8 billion e-commerce sales projected in 2003, some $6.7 billion will be "business-to-business" buying and selling of goods and services, according to International Data Corporation. It's no great mystery why. More companies than consumers are online, and the web offers a low-cost way to open markets at home and abroad. But the companies have no clear indication where to go to conduct trade. After all, there is no online equivalent to the Chicago Board of Trade Chicago Board of Trade (CBOT) The second largest futures exchange in the US, and a pioneer in the development of financial futures and options. for auto parts, dishwashers, printers or other manufactured goods. SPONTANEOUS DOT-COM-BUSTION Many Internet start-ups are scrambling to establish themselves as "the marketplace," but it is not always clear for what product or service. There are sector-specific entrants--in fact, there's a bumper crop of AGRICULTURAL WEBSITES in Latin America--but even within this universe, it's not evident which, if any, is the best place to go to market. Here again, the thunder of giant footsteps echoes behind the start-ups. General Motors, Ford and Daimler-Chrysler recently unveiled plans for a worldwide parts purchasing operation using the Internet. Global grain trader Cargill is launching a website. Within the region, Carlos Tramutola, a former executive with Argentine multinational company Techint, and Oscar Bernardes, former head of South American grain giant Bunge International, formed the Latin American Internet Development Group, an incubator for business-to-business websites. MegaAgro, a joint venture with Argentine entrepreneur Enrique Pescarmona, could prove a category killer Category Killer Large companies that put less efficient and highly specialized merchants out of business. Category killers can attain this status by being cheaper, easier, bigger, or more popular than the competition. for web start-ups owing to the power of the backers. (selected list) Perhaps the best facet of the business-to-business struggle is the price. The sites are so hungry for business that none are charging--yet. Freebie free·bie also free·bee n. Slang An article or service given free: "such freebies as subway and bus maps" New York. mania. Giveaways also reign as the preferred tactic for recruiting Internet users. Brazil, Latin America's largest Internet market, has become the testing ground for FREE INTERNET SERVICE An ISP that provides access to the Internet without charge to the user. The service is supported by advertising which appears on a special version of the user's browser and cannot be eliminated. NetZero (www.netzero. PROVIDERS. It began last December after Banco Bradesco, the nation's largest private bank, offered its 8 million customers free access to the World Wide Web. Since then, other ISPs have followed suit. Brazil's leading service provider, Universo Online (UOL), took three and a half years to enlist 650,000 paying clients, while its free access-offering Netgratuita claims to have signed up 806,000 subscribers in just two weeks. "You cannot compare paying subscribers to free subscribers," says UOL Chairman and CEO Luis Fr[acute{i}]as, explaining that free users often have multiple accounts because it's easier to start a new account than remember an existing password. Fr[acute{i}]as, as, however, admits that UOL and daily newspaper El Universal considered making a big splash in Venezuela with free access--until Venezuelan President Hugo Ch[acute{a}]vez banned Internet freebies in his country. Nonetheless, the free ISP trend is becoming entrenched en·trench also in·trench v. en·trenched, en·trench·ing, en·trench·es v.tr. 1. To provide with a trench, especially for the purpose of fortifying or defending. 2. in the region. StarMedia announced it would bring free Internet access via a company dubbed Gratis1. The venture will premiere in Brazil and Argentina before shifting to Mexico and the rest of the region. Terra Networks is moving in the same direction. The key driver for free service is declining service costs. A Merrill Lynch analysis finds that it costs an Internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. about $4 to $5 per month per subscriber. Free access will likely restructure the business so basic service is free but fees are charged for faster connections, broadband access, increased storage space and other upgrades. It also means many of Brazil's 280 Internet service providers that depend on subscriptions for their revenues will vanish by next year. "The survivors will have to learn to make up the money with advertising," says Yahoo's Fiorentini, predicting only about 25 will survive freebie mania. Add e-commerce revenues to the equation and Fiorentini could be talking about any one of Latin America's web start-ups. Even "the world's fastest growing market" isn't going to be able to support a limitless list of entrants. A select few hot dot-coms will remain independent companies in the short term. Of the rest, the fortunate will be acquired by one of the incoming giants and the not-so-lucky will get squashed. BUSINESS-TO-CONSUMER WEBSITES www.compras24.com (English, Portuguese, Spanish) Guide to online shopping sites. www.espanol.com (Spanish) Boston-based website for buying consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and , principally books, videos and CDs. www.fiera.com (Portuguese, Spanish) Miami-based site for books, CDs and other items. www.fnac.com.br (Portuguese) Brazil-based website for books, CDs and other items. www.submarino.com (Portuguese, Spanish) Brazil-based site for books, CDs and more. www.zona247.com (Spanish) Website for books, videos and CDs. MUSIC AND SPORTS WEBSITES (selected list) www.aplauso.com (English, Spanish, Portuguese) Latin music and entertainment. www.element7.com (Spanish) Surf and skate website. www.eritmo.com (English, Spanish) Music website. www.futeboltotal.com.br (Portuguese) Soccer website. www.latinsoccer.net (English, Portuguese, Spanish) Soccer website. www.ritmoteca.com (English, Portuguese, Spanish) Music downloads. www.sportsya.com (Spanish) Sports website. www.somlivre.com.br (Portuguese) Music sales online. BUSINESS-TO-BUSINESS WEBSITES (selected list) www.asista.com (English, Spanish) Asista's trade exchange is yet to be launched. www.b2b.intesa.com (Spanish) Intesa puts interactive company catalogues online. www.btoben.com (English, Portuguese, Spanish) Business-to-business site serves as incubator for e-commerce companies. www.eaquib2b.com.br (Portuguese) Brazilian trade exchange will soon expand to Spanish-language markets. www.labl.com (English, Spanish) Latin American Business Link organizes forums by product and country. www.latintrade.com (English, Spanish) LatinTrade.com, sister company to this magazine, offers trade exchange for 26 industries. www.plazavertical.com (Portuguese, Spanish) PlazaVertical has food, health, public sector and information technology exchanges up and running. (English) Vortal 1's trade exchange is yet to be launched. AGRICULTURAL COMMERCE WEBSITES (selected list www.agropool.com (Spanish) Agropool, Argentina-based agricultural exchange. www.agrositio.com (Spanish) Agrositio, Argentina-based agricultural exchange. www.foodtrader.com (English) FoodTrader, Miami-based agricultural exchange. www.megaagro.com (Spanish) MegaAgro, Argentina-based agricultural exchange. FREE INTERNET SERVICE PROVIDERS (selected list) www.alternategratis.com (Spanish) Free access in Argentina www.bancodobrasil.com.br (Portuguese) Banco do Brasil Banco do Brasil S.A. is a major Brazilian bank headquartered in Brasília. The bank was founded in 1808 and is the oldest surviving bank in Brazil — one of the oldest of Latin America. , five hours a month free. (English, Portuguese, Spanish) Banco Bradesco in Brazil. FREE INTERNET SERVICE PROVIDERS (selected list) www.brfree.com (Portuguese) Free access in Brazil www.catolico.com.br (Portuguese) Archdiocese of P[hat{o}]rto Alegre, free Internet in Rio Grande do Sul Rio Grande do Sul (rē`  grän`dĭ th s . www.gratis1.com (Portuguese, Spanish) Gratis1, StarMedia's free Internet access in various countries. www.icero.com (Spanish) Free access in Argentina www.ig.com (Portuguese) Brazilian portal, free Internet to all of Brazil. www.internetgratis.com.br (Portuguese) Internet Gratis, free Internet access in Brazil. www.netgratuita.com.br (Portuguese) NetGratuita, Universo Online's free Internet service in Brazil. www.quepasa.com (English, Spanish) Free Internet primarily for U.S. Hispanics. www.super11.net (Portuguese) Free access in Brazil. www.terra.com (Portuguese, Spanish) Terra Networks, free Internet access in various countries. www.tutopia.com (English, Portuguese, Spanish) IFX IFX - ["Type Reconstruction with First-Class Polymorphic Values", J. O'Toole et al, SIGPLAN Notices 24(7):207-217 (Jul 1989)]. Corporation, free Internet access in several countries. www.unibanco.com.br (Portuguese) Unibanco and Ig.com, unlimited service to its clients BRICKS-AND-MORTAR ONLINE (selected list) www.americans.com.br (Portuguese) Lojas Americanas, a Brazilian department store. www.falabella.cl (Spanish) Falabella, Chilean department store. www.musimundo.com (Spanish) MusiMundo, Argentine music store. www.pontofrio.com.br (Portuguese) Ponto Frio, a Brazilian department store. www.sanborns.com.mx (Spanish) Sanborns, a Mexican department store. |
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