Economic Growth = Rising Domain Values

[ekal]

I just finished reading this article and realised I needed to update my signature:
http://www.nytimes.com/2006/09/29/b...&en=66938d7c88a3e722&ei=5094&partner=homepage

The gist is:

The Indian economy grew at an unexpectedly torrid 8.9 percent annual pace in the second quarter of 2006, propelled by a sharp turnaround in its once-listless manufacturing sector, the government reported today.

India is now growing faster than nearly any other sizeable economy in the world.

This got me thinking - is domaining outside of the US/UK/Germany/Japan a question of following the economic growth?

If we see China growing can we assume that an investment in good quality Chinese names will bring a high rate of return?

Are there any countries that buck this trend - strong internet markets but overall weak economies?

 

[Keynes]

Okay, these are some good questions, I'll give them a shot, in turn:

1) Are developed nations' growth paths positively covariate with returns on their domains (ccTLD and generally)?

Yes, although it's not a linear relationship. That is, once an economy rises above a certain threshold of market concentration, there will be a critical mass of demand for electronic commerce. Early on, the partial will be much higher, as market forces are growing and industries are emerging -- entry is the key here. In already competitive markets, economic growth is often fueled by new emerging sectors, boosting elements of commerece, but not necessarily all. These trends should hold in both TLDs and ccTLDs.

2) Does the success in .co.in/.in portend growth for .cn?

Perhaps, but I wouldn't place a strong bet on this. India is unique in it's use of English, and the relatively pro-market stance (there are still nationalist and socialist rigidities, but overall the picture is improving.) Furthermore, the nationalist tendancies in China both suggest the future there will be regulated and concentrated on full IDNs (with the name AND extension in Mandarin or Cantonese.) China remains a wait and see, and really doesn't justify aggressive domain investment at this point.

3) Are there any markets or countries that exhibit countercyclical trends w.r.t. market-domain interaction?

I would argue this question needs to be restructured, as really what we're looking at is the concentration of eCommerce markets, and not the overall economy. So, yes, if a nation is primarily agricultural and has emerging markets, there is potential for both a temporal and structural countercyclical lag between the economy and eCommerce. Overall, however, we expect a positive covariance in the aggregate; that is, opportunities for surplus can always be had in certain sectors during economic downturns.

Cheers, Brad, RFM

 

[kemjika11]

ccTLDs from these rising economies will probably notice more success( i don't know how much), but the inevitable fact is that with the US starting the internet, .com became established as the king of the internet space, and just because of the solid, powerful precedence, many other countries and citizens will still consider .com a solid option when thinking about establishing an online presence.(ceteris paribus)

 

[Ronald Regging]

Consider this...

Most american companies hire indian people because they are cheap labor.
Not only that, but any type of freelance site or service oriented site is inundated with indian people offering cheap labor...

I dont know what the indian currency is or how it compares to the US, but it stands to reason that their economy is nowhere near ours. Maybe their overall economy is growing, but how does that compare to the average employee or business in the US? Meaning, that the increasing economy may definitely be good news for .in domain holders, but generally speaking it seems that the end-user market in $$$ is nowhere near that of countries like the US, Japan, UK, etc... So you have a domain that might be worth $5,000 in a US market, but it's only worth $500 in an Indian market...

Sometimes high-tech business analysis can be summed up by an obvious observation...

 

[Jo]

The Indian economy grew at an unexpectedly torrid 8.9 percent annual pace in the second quarter of 2006, propelled by a sharp turnaround in its once-listless manufacturing sector, the government reported today.

India is now growing faster than nearly any other sizeable economy in the world.

Curious, just what are they manufacturing and why is their economy growing so fast?

 

[deu12000]

I know telemarketing is big business there. Telemarketing is a respectable and decent wage earning job as opposed to it being one of the most loathed jobs here. Of course the usual suspects, programming and tech support are also big money earners.

 

[cache]

at US, you call phone companies (or many other big companies) at off hours, you get those indian customer support people. (we all try to call the regular hour so to avoid them!)

Curious, just what are they manufacturing and why is their economy growing so fast?

 

[floatingworld]

I know telemarketing is big business there. Telemarketing is a respectable and decent wage earning job as opposed to it being one of the most loathed jobs here. Of course the usual suspects, programming and tech support are also big money earners.

....programming and tech support is also a loathed job :wave:

 

[cityforums.com]

Curious, just what are they manufacturing and why is their economy growing so fast?

American office jobs are generally being outsourced to India ... all my websites

were done by Indians ... the Americans just can't compete with their prices.

 

[gazzip]

There have been quite a few big companies that have moved their call centres from the UK like

Norwich Union - Insurance
British Telecon

Abbey Banking - call centres moved there but are coming back to UK

Powergen electric moved their call centres to India but I think they are planning to go back to UK too.

Dyson - moved to manufacture vacumm cleaners there


Just a small few of many UK examples

.

India ... all my websites

Hi, Where do you go to get them done ?

.