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Christmas shopping with a bit of get up and go

Updated: 2012-12-12 08:12

By Kerry Wong(HK Edition)

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Christmas shopping with a bit of get up and go

Bauble-bedecked Christmas trees have sprung up in offices and shopping malls across the city, a sign that the festive season has well and truly hit Hong Kong again. This should be good news for retailers, who saw total retail sales jump 23.4 percent year-on-year (yoy) to $43 billion last December. But for consumers, it can mean increasingly long queues, a desperate hunt for special presents for friends, family, colleagues, and a battle to bag the best bargains before the year ends.

Perhaps it's no surprise that many are turning to technology to make their lives a little easier. Hong Kong shoppers are increasingly picking up their mobile devices to enjoy the speed and convenience of being able to shop and pay anytime, anywhere. As a result, mobile shopping is booming - around 1.1 million people have shopped on a smart phone or tablet in the past year, spending a whopping HK$6.4 billion.

Yet even though Hong Kong has seen a tremendous 444 percent growth in mobile commerce over the last year, 62 percent of Hong Kong consumers do not trust mobile transactions. Security concerns are still making those who do mobile commerce nervous about such purchases, with just 34 percent of them believing their personal information online is safe. Security concerns are preventing some mobile sales altogether, and even if they shop online, they are reluctant to spend huge amounts, with 52 percent of shoppers spending only HK$100 or less during their last mobile transaction. In fact, Hong Kongers are actually willing to spend a lot more, but they need to be more convinced of security and have a higher level of trust with brands to do their holiday shopping via mobile.

The reality is that just 15 percent of shoppers have suffered some kind of personal data loss while transacting on their mobile device. This indicates that while there's a chance they could fall victim to fraud, it's less common than consumers may fear. It's clear that there's a disconnect between consumers' fears about mobile shopping and the facts. It is important for shoppers to learn about the assurance on offer when they're shopping online and on the go - for example, by looking out for a buyer protection. Savvy shoppers can also take steps to protect themselves by using a secure password. They can also carry out due diligence online and thoroughly research the website they're planning to buy from, particularly if they haven't transacted with that merchant before. Reading reviews and ratings from other shoppers is a good way to unearth more information. If a deal really seems too good to be true then it probably is. On the other hand, local retailers can also do their bit by working to reassure customers that their site is safe to shop on. They need to ensure customers that their payment platform is secure, and one that consumers trust, in order to foster customer loyalty and increase sales.

The author is managing director, PayPal, Hong Kong, Korea and Taiwan. The views expressed here are entirely his own.

(HK Edition 12/12/2012 page2)

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