VIDEO: Getting Hong Kong’s shoppers online

Graeme Beardsell, Asia-Pacific vice-president for Experian’s market research arm, noted that Hong Kong was a unique case where broadband and 3G mobile penetration was incredibly high, yet its denizens preferred brick and mortar shopping.

“It’s the entire experience of going to a shopping mall — which is very likely attached to their apartment,” he said. Hong Kong natives like to enjoy the air-conditioned malls on a hot day, browse stores, grab a meal and catch a movie — all of which makes the life of an online retailer in the city a hard one.

“Quite a few online shops in Hong Kong are purely focused on external markets like China, the US and Australia,” he observed.

But online retailers have finally managed to woo this elusive clientele to their web portals. The key, said Beardsell, is group buying. “It’s taking off very rapidly in Hong Kong. And not just sites like Groupon, but personal group buying sites where a bunch of friends get together on Facebook and recommend products to each other,” he said.

Now that their consumers are online, retailers can retain them buy ensuring they provide the right product, at the right time, for the right price, added Beardsell. “Beyond lower prices, what people are looking for is access. How can I get that shiny new product I want quickly?”

If online retailers can get this right, it’ll drive consumers more and more towards e-commerce, he added.  “The key is consumer insight. Messages should tell consumers, ‘We know who you are, what you want and how you want it’.” Asians, said Beardsell, really want a personalised shopping experience.

Brick and mortar retailers shouldn’t be concerned however. Group buying sites, blogs and social network word-of-mouth often direct consumers to physical shops through recommendations and deals. “People are driven through online interaction to brick and mortar stores,” said Beardsell.

Finally, marketers need to sell their brands both online and offline. “What we’ve seen in the blogsphere is that brands trump everything… Marketers who understand how to attach prestige to a brand, who understand how to give a brand cachet to a certain demographic will certainly win.”