Dia Yiu, a businessman who travels frequently between Canada and Hong Kong, is no stranger to online shopping. In his home in Canada, buying things through the Internet is often a necessity, he said. To find a product, "you might have to spend half a day driving to shopping mall and searching for it in a department store where you can hardly find a store assistant to help you."
But he couldn't make out why Hongkongers would shop online: "You can find such a variety of shops in a small area. It's so convenient."
Online shopping is gradually gaining popularity among Hong Kong consumers. Edmond Tang
From designer labels' flagship stores in the Central to the electronics shops at Sai Yeung Choi Street, Hong Kong shoppers are indeed spoiled for choice. With malls and shopping promenades offering the ultimate consumer experience, shopping is a favorite pastime to many.However, online shopping is gradually gaining popularity. According to government statistics released in December, about 10 percent of Hong Kong netizens have shopped online.
This may not sound much compared to the US or the Europe, where 70 percent of the population have shopped in the cyberspace. But Hong Kong's e-commerce development always lags behind the US or Europe for five years, said Rene Chu, eBay Hong Kong's first preferred trainer and the operator of e-commerce consultancy Drop and Earn.
In terms of product variety, what changes hands online is much more than the hard-to-find, the embarrassing-to-buy or the second-handed. Yahoo! Hong Kong, which accounts for 90 percent of the online auction business in town, said more than 50 percent of transactions on its website are clothes and toys.
What has motivated Hongkongers to buy things they couldn't see and try on?
While lower price is an obvious incentive, bargain hunting isn't the only thing luring Hongkongers to cyberspace.
Caroline Wai prefers online shopping. "I don't like the crowd. And I don't like those aggressive shopping assistants... I'd rather shop online, where I can take my time and check out things in my pajamas."
Zoey Su, of course, loves shopping in real world. But it doesn't conflict with her appetite for Internet catalog. "If you know where to look at, the selection online is 100 times of the real world," said Su. "There's little risk of 'outfit clashes'."
In the trend-conscious Hong Kong, wearing the same clothes as others on the street is not just a gaffe for the celebrities. For any girl with good taste, seldom-seen design is always appreciated.
It's actually much easier to find originality in virtual retail world, said Chu. "In older Hong Kong, there are many little shops with special characteristics. You don't see them any more, because the rentals have simply become unaffordable," she said. "Nowadays, all you see are the chain stores. Causeway Bay or Tsuen Wan, it doesn't matter. They are all same."
Fortunately, these little shops have not disappeared. Many have retreated - to the cyberspace, "where the rental and overhead is minimal," Chu said.
Unable to see actual product
The online shopping's biggest drawback could be the lack of direct inspection of actual product. Yet, this has not prevented fashion from becoming one of the most important categories in cyberspace retail, despite the importance of texture, color and sizes which is key to apparel buying.
Su admitted that she regretted at times buying clothes online. But as she kept trying, she gained experience. "Now I could pretty much tell the quality of a web shop's clothes from the way the web page is designed and the merchandises presented."
Chu pointed out that to some fashion shoppers, quality is not a big consideration. "They want the newest design, as soon as possible. Such clothes would be worn only a few times. Quality is not that important," she said.
Concern over data leaks and security breach is another thorny issue. But Chu said that online shoppers in the city benefit from a well-developed logistics system.
"Many web shops offer the 'cash on delivery' option, so buyers can pay when they see the actual thing... Have you noticed the people waiting at Mong Kok MTR Station? Many of them are there to deliver or receive online orders," she said.
According to a report by the Census and Statistics Bureau in December 2007, Hong Kong companies' e-commerce revenue has risen to an impressive HK$64.9 billion ($8.31 billion) in 2006. The figure could be misleading, however, as transactions generated by Octopus payment system or e-banking were included.
Given the saturation of the brick-and-mortar retail network, online shopping may remain a minor sales channel in Hong Kong, said Francis Kwok, Chairman of Hong Kong eMarketing Strategic Alliance and CEO of e-commerce consultancy Radica Systems.
However, great potential lies in three kinds of products: financial products, travel products and products of "repetitive" nature, he added.
For financial and travel products, the inability to see the actual products doesn't pose any constraint. To most users, the web-based service is much more convenient and efficient than the conventional way of talking to an agent. For the companies, the online sales platform cuts labor cost.
For instance, "when you buy an insurance, traditionally, you need to go back and forth with an agent several times to draw up a contract, sign it and wait for the approval. With e-banking, the process would be finished in five minutes," Kwok said.
It's not hard to understand why Internet sales channels also suit commodities of repetitive nature, such as printer ink or shampoo. Interestingly, online sales suit new products people have never tried before.
More and more women are buying beauty products online, "because they trust other users' comments more than advertisements," Kwok said.
