Fashion gets the clicks－BMQ

While Hong Kong's electronic commerce market is still behind other countries in the Asia-Pacific region, the potential is getting bigger, thanks to the rapid growth in mobile technology.

Singapore-based online fashion retailer Zalora has made its mark here by launching an online shop then a marketplace - a platform specially for independent local designers, boutiques and brands - late last year.

Last month, it launched its first cash- free click-and-mortar pop-up shop in the SAR to celebrate its third anniversary.

This is one of the best ways to engage with customers by bringing online businesses and offline operations together, said Zalora Hong Kong managing director Chua Cheng Xun.

"In this store, you can experience shopping in the cyber world and reality," he said.

From a late start Hong Kong has taken off in terms of online shopping over the past few years.

"A few years ago, just about half of the shoppers experienced buying online," Chua said. "Last year, the proportion jumped to 90 percent."

Hong Kong's high mobile penetration has been one of the big forces to drive online shopping.

Three years ago, access via mobile to the store accounted for about 15 percent of the total traffic in Hong Kong. The proportion jumped to more than 40 percent last year. And for the whole of the Asia-Pacific region, the ratio is more than 50 percent, Chua said.

So even though Hong Kong did fall behind for some time, the trend in the territory remains on the upside for the

next few years, he noted.

The engagement on social media platforms is perhaps more proof.

Chua said Facebook fans of Zalora in Hong Kong grew from zero in 2012 to more than 200,000 this year. And there are more than six million users in the region who have liked the Zalora fan page.

For the new pop-up shop in Causeway Bay, customers don't have to bring any cash. Everything - from selecting items to checking out - is done over Zalora's online platform.

Shoppers can try on the items, then scan the barcode with the computers in the store or zap the QR code with their mobile phones to proceed to checkout - they can pay with their credit cards or Paypal accounts. There are also a few Samsung tablets for the same purpose.

Shoppers can then either have the goods delivered to their doorsteps - with an option of cash on delivery - or pick them up at the pop-up store in Windsor House, Causeway Bay.

This is indeed a big investment to have a store running for less than two months in the district, well-known for being one of the most expensive shopping destinations. Rents in the building range between HK$100 and HK$500 per square foot.

But Chua said his firm will not transfer the expense to customers by raising prices in the store.

"We have no plan to increase prices of items sold in the pop-up shop," he said. "Prices are controlled by the partnering brands." Instead, there will be various offers available only in the click-and-mortar store.

In recent years, many shoppers completed their first online purchases in pop-up stores, Chua said.

While Zalora does not expect sales in the click-and-mortar stores to be a huge source of revenue, they can be substantial, according to experience in other markets.

Chua said the retailer may open more pop-up stores in Hong Kong depending on feedback.

"Or we may run short-term pop-up stores in different locations like a roadshow," he added.

The 2,500-square-foot store in Windsor House is open until the end of June. New items will be put on the shelves every week.

"About 30 to 40 percent of items will be replaced by the new ones," Chua said, adding that some 20 brands out of 6,000 available on its massive retail platforms in the region are available physically in the store.

A special section is dedicated to Zalora Marketplace, showcasing works by local designers. "Many Hong Kong shoppers go after the famous brands like Mango, Girls on Film or River Island, etc, but a lot of them also show support for and interest in local designers," Chua said.

"They love Hong Kong brands."

To ensure quality and flexibility, Zalora offers a 30-day full refund with no questions asked.

source from The Standard