CREATION - Traditional retailers win shoppers, benefit from online gloom

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