CReATION: Hong Kong's surfers succumb to the urge to spend, spend, spend

<p>Online shoppers in Hong Kong spend an estimated HK$87.6 </p><p>million (about US$11.4 million) a month, an ACNielsen survey has </p><p>found. </p><p><BR><BR> </p><p>While the figure indicates that the Internet is already a billion dollar </p><p>business in the territory on an annualised basis, the upside potential </p><p>is still huge since just five per cent of respondents who described </p><p>themselves as frequent surfers were responsible for the spending </p><p>spree. </p><p><BR><BR> </p><p>"This appears to be the beginning but as people start to feel more </p><p>comfortable making purchases online, we will likely see spending </p><p>increase over time," Mr Johnny Tsin, director of customised research at </p><p>ACNielsen, told CReATION. </p><p><BR><BR> </p><p>Online shoppers spent an average of HK$1,152, with 14 per cent </p><p>spending more than HK$4,000. </p><p><BR><BR> </p><p>The ACNielsen survey also found that about 1.6 million people in Hong </p><p>Kong accessed the Internet once every two days. </p><p><BR><BR> </p><p>Frequent Internet users aged 15-34 formed the core of online consumers, </p><p>accounting for 78 per cent of an estimated 76,000 users. </p><p><BR><BR> </p><p>"With this youthful slant, business-to-consumer ecommerce has a very </p><p>long way to go, because as these young people gain in socioeconomic </p><p>status so will their spending power grow. </p><p><BR><BR> </p><p>"We will soon see a new generation growing up shopping on the 'Net," </p><p>said ACNielsen executive director of customised research, Helen Lok. </p><p><BR><BR> </p><p>One key finding of the survey was that about a third of frequent Web </p><p>surfers relied on recommendations by friends, relatives or colleagues in </p><p>choosing Internet sites to visit. </p><p><BR><BR> </p><p>Word-of-mouth was even more important than editorial recommendations (22 </p><p>per cent) and advertising in offline media (18 per cent). </p><p><BR><BR> </p><p>"This presents a great challenge to ISPs and portals as they formulate </p><p>their marketing strategies. </p><p><BR><BR> </p><p>"The whole business of websites and portals is so fluid that </p><p>word-of-mouth travels faster and has a stronger impact on surfers than </p><p>anything else," said Mr Tsin. </p><p><BR><BR> </p><p>"Service providers must have rich and fresh content and quality service </p><p>to command goodwill." </p><p><BR><BR> </p>