Still, nearly all of his customers are tourists. They have heard of the Internet, but the Internet cafe is a wholly new concept to them. In the off-season, October through February, he converts most of his Internet cafe into a clothing store. Sluggish connections are a problem throughout China. Of course, China is changing rapidly, and so is the Internet.
Entrepreneurs say they are optimistic that logistical obstacles can be overcome.
But corporate profits in China have historically been elusive. Ask any multinational corporation that has set up shop in China in the last decade, eager to tap into the billion-customer market. A majority of companies is still waiting for the investments to pay off. Plagued by distribution difficulties, inflated estimates of demand and bureaucratic red tape, more businesses are leaving China, deciding that the market can wait. Predictably, profits in e-commerce are elusive as well, though not just in China.