Traditional retailers are proving more successful in online
shopping than pure dotcom companies, a study by Nielsen//NetRatings has
found.
In its first analysis of e-commerce activity across Asia-Pacific and
Europe, the researcher found bricks and mortar businesses succeeded on
the Web because it enjoyed consumer trust and visibility.
On the other hand, dotcoms worldwide have been plagued by negative
publicity especially now that the hype has died down and there is a
lengthening list of dotcom casualties.
"The first report for Asia-Pacific and Europe shows clicks and mortar
retailers drove the online holiday shopping trend in both regions," said
Nielsen//NetRatings Global Analytical Services spokesman Brian
Milnes.
"In Asia-Pacific, we observed a two-pronged growth pattern. On the one
hand, more surfers visited e-shopping sites, while on the other hand,
traditional retailers and local companies began to attract new levels of
Web traffic.
"The crucial advantage these sites have over their pure play
counterparts is trust. In a year when e-commerce received little but bad
publicity, the support offered to customers by a familiar name was worth
more than any advertising," he said.
Web traffic increased during the holiday season, with Singapore
recording the highest growth, a hike of 31 per cent from September to
December last year.
In Hong Kong, e-shopping visitor levels were up 4.4 per cent, 10.7 per
cent in Australia and 8.5 per cent in New Zealand.
The jump in Web traffic in Singapore was mainly due to the popularity of
e-greeting sites during the holidays, Mr Milnes said.
"Click and mortar retailers were also able to start their holiday
preparations and marketing earlier and with higher visibility than their
online competitors," he added.
"Leaflets and signs in stores clearly alerted customers to the existence
of the sites and the availability of goods online. Many sites ensured
they offered as full a range of goods online as possible, even
low-ticket items, and many encouraged users to compare items and ranges,
aware that price comparison is one of the main reasons surfers visit
ecommerce sites."
Not surprisingly, home-based surfers in Hong Kong lagged behind the
e-shopping growth in the rest of Asia-Pacific. The SAR is after all a
compact shopping destination and shopping is one of few leisure options
open to residents in this teeming city.
Mr Milnes believes that online shopping in the SAR could be restricted
because Hong Kong surfers were waiting for more well-developed and
secure Cantonese or traditional Chinese e-shops.
"Since both cities (Hong Kong and Singapore) are custom-built for
offline shopping, online retailers must add even more value to convince
shoppers to stay home and shop on their computers when going out is so
relatively easy."
