Online shopping reaching a dot calm era?
Although e-commerce, especially in the US has enjoyed hypergrowth since the inception of the Internet with sales over the Internet are expected to reach US$116 billion (S$178.4 billion) this year, analysts agree that the growth is starting to decline.
According to market research company, Forrester Research, online book sales will rise only 11 per cent this year compared with nearly 40 per cent last year. Apparel sales, which increased 61 per cent last year, are expected to slow to 21 per cent.
For companies who were cautious and did not catch the first wave, now may be too late. Despite the high overall sales figures, it must be noted that there are many more competitors than before, making individual online sales less profitable.
The conventionally top online sellers have been quick to spot the change in consumer buying habits and have started to make changes to their strategy. Dell - which many had regarded as a master of online computer sales - is putting its PCs in Wal-Mart stores, while Expedia has almost tripled the number of travel ticketing kiosks it puts in hotel lobbies.
This levelling off of online shopping reflects the practical and psychological limitations inherent in the medium. Online stores give shoppers a blase experience. In addition, since online shopping involves a computer, feels like work. Finally, online shopping does not seem to provide the same ‘stress-relief’ effect as traditional shopping – with more physical ‘concept’ stores offering customers a multi-sensory buying experience (without the kind of ennui or exhaustion that sets in after about 30 minutes of shopping online).
It then becomes a lot more worrying that many Singaporeans are only now trying to get in on the act. You can hardly find a day without an advertisement in the newspaper for some seminar or course by some alleged millionaire e-marketer or e-commerce provider, lauding over the virtues of an online business to help just about anyone ‘get rich’ without very much effort (after all, since the market does not or soon will not allow them to enjoy the same level of success as before, the only thing left to do is to make money off ‘selling their past successes’ by selling their stories).
Since Singapore and Europe did/does not have a vibrant online shopping culture, it used to be that you had to target the US market to make money online. Now with these studies suggesting that the trends in the US are beginning to change, it begs the question, who are all these e-commerce ‘newbies’ going to market to? It seems that many ignorant (and perhaps greedy) Singaporeans are about to get severely burnt!
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Although e-commerce, especially in the US has enjoyed hypergrowth since the inception of the Internet with sales over the Internet are expected to reach US$116 billion (S$178.4 billion) this year, analysts agree that the growth is starting to decline.
According to market research company, Forrester Research, online book sales will rise only 11 per cent this year compared with nearly 40 per cent last year. Apparel sales, which increased 61 per cent last year, are expected to slow to 21 per cent.
For companies who were cautious and did not catch the first wave, now may be too late. Despite the high overall sales figures, it must be noted that there are many more competitors than before, making individual online sales less profitable.
The conventionally top online sellers have been quick to spot the change in consumer buying habits and have started to make changes to their strategy. Dell - which many had regarded as a master of online computer sales - is putting its PCs in Wal-Mart stores, while Expedia has almost tripled the number of travel ticketing kiosks it puts in hotel lobbies.
This levelling off of online shopping reflects the practical and psychological limitations inherent in the medium. Online stores give shoppers a blase experience. In addition, since online shopping involves a computer, feels like work. Finally, online shopping does not seem to provide the same ‘stress-relief’ effect as traditional shopping – with more physical ‘concept’ stores offering customers a multi-sensory buying experience (without the kind of ennui or exhaustion that sets in after about 30 minutes of shopping online).
It then becomes a lot more worrying that many Singaporeans are only now trying to get in on the act. You can hardly find a day without an advertisement in the newspaper for some seminar or course by some alleged millionaire e-marketer or e-commerce provider, lauding over the virtues of an online business to help just about anyone ‘get rich’ without very much effort (after all, since the market does not or soon will not allow them to enjoy the same level of success as before, the only thing left to do is to make money off ‘selling their past successes’ by selling their stories).
Since Singapore and Europe did/does not have a vibrant online shopping culture, it used to be that you had to target the US market to make money online. Now with these studies suggesting that the trends in the US are beginning to change, it begs the question, who are all these e-commerce ‘newbies’ going to market to? It seems that many ignorant (and perhaps greedy) Singaporeans are about to get severely burnt!
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