Online shopping challenges local retailers

A Gongbei express delivery service

Local retail stores have been challenged by the expansion of online shopping, which has found a large majority
of its followers in younger audiences. Internet giant Alibaba, through its e-shopping platform Tmall, exceeded its 2014 sales records with sales totaling RMB 91.2 billion exclusively during last year’s Singles Day. Across the border, Guangdong Province ranked first in value of purchases. As online competition intensifies, traditional stores in Macau – especially small businesses run by the self-­employed –
start to fade away.
Figures show that the top provinces to purchase the greatest quantity of goods on Singles Day using the Tmall websites were Guangdong, Zhejiang, Jiangsu, Shanghai and Sichuan.
A few street traders told local media that running a business is getting more difficult due to the online availability of most products. However, in-store shopping remains strong in Macau, with thousands of tourists visiting local malls and many new shops opening, particularly in the casino-resorts.
Mostly located at the Zhuhai Port Plaza (Gongbei), express delivery services are on offer to enhance the on-line shopping experience. As part of this service, customers can pick up the goods that they purchased online.
Mr Chen, who has been managing a warehouse at a temporary address over the last six years, is preparing for the last days of shipments, just before couriers cease all mail deliveries in time for the Spring Festival.
“People who come from Macau have been collecting more parcels in recent days because we are closed for the Spring Festival, and they have also been using the express mail services,” said Chen, who also told the Times that Macau residents often retrieve their mail once a week, usually on weekends.
Online shoppers from Macau prefer to collect their parcels at the Zhuhai Port Plaza. Due to Macau’s status as a Special Administrative Region of China, shipping costs are always more expensive when compared to Zhuhai. Most local online shoppers therefore request their goods be delivered to temporary addresses like Chen’s. “Most of the customers that I am familiar with buy clothes, shoes and car accessories, among many other things. As I said, it’s very busy on weekends because they all cross the Border Gate to pick up their mail. It’s hard to tell their ages. They are mostly young and middle aged, but sometimes one or two older customers come to the store,” Chen responded.
When interviewed by the Times, a local lady explained that “it’s very convenient to shop online, and there are many choices.”
Ng, a college student, said, “I like to buy daily products online. Normally I go to Zhuhai Port Plaza to pick up the orders once every two weeks. Shopping online is convenient but at the same time inconvenient because I still need to go to Zhuhai to return them. So, I still like to do in-store shopping in Macau.”
Online retailers have been dealing with large quantities of returned goods, a problem which does not originate with Macau’s shoppers according to Chen. “Macau customers seldom return their items,” he said. Chen also mentioned that he has few elder customers. These older people have learnt how to conduct online shopping from others. Staff reporter