Online shops woo Asians

Online shopping is soaring all over Asia – even in more mature markets.

Authority Blogging Platform says more than US$344 billion was spent online in China, Japan, South Korea, Taiwan, and Hong Kong last year. Each of the five economies witnessed large increases in total growth compared to the year prior, ranging from eight per cent in the Japanese market, to more than 67 per cent in China.

Consumers in Singapore spent $1.4 billion (33 per cent higher than in 2010) according to PayPal and research company Nielsen.

Guan Xin, a bank executive, was one of 200 million who took advantage of November 11’s “Singles’ Day”, as she purchased running shoes, an MP4 player, phone charger, and even a mop. Online purchases reached $3.7 billion in that day alone.

“It’s faster to buy online. I already knew what I wanted,” said Xin.

Xin fits the mold of a Chinese buyer, as she is in between the late teens and early 30s, able and willing to purchase items, and understands how to utilise the latest in technology as it pertains to shopping logistics.

There also seems to be no limit to the range of goods Asian shoppers are buying online: Taiwan’s top online retail company, PCHome, sold over 1 million packs of toilet paper online last year.

Free delivery mixed with a no minimum spending has become a large plus for grocery purchases in the respective countries. Many retailers offer free returns and refunds for faulty items as well, adding to customers interest in purchasing.

Lee Yi-Chiun, a web-service engineer, returned a netbook with a faulty screen from an online retailer associated with Yahoo within a week of receiving the unit.

“I got a full refund promptly, no problem,” said Yi-Chiun, who is one of the company’s “platinum” members, having racked up more than NT$1 million worth of purchases, including a washing machine and a refrigerator.

“I don’t think a bricks-and- mortar shop would have been as generous,” he said.

When it comes to the Chinese clothing retailer Vancl, shoppers can return the clothing without having to pay a penny. There need to be no direct reason for the return either. Once again, shoppers are more likely to spend with such affordable perks and additions.

Still, online companies fall far short of overtaking brick-and-mortar stores. Online purchases in Japan accounted for a mere 2.8 per cent of total personal consumption in 2011.

GB

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