Vol. 35 No.153
       ©2007 Marianas Variety
Tuesday, October 16, 2007 www.mvariety.com
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Guam retailers upbeat on competition with Internet

By Mar-Vic Cagurangan
Variety News Staff

AS THE holidays draw near, many Guam consumers must have been spending a lot of time on their computers, either just window-shopping or actually completing their online shipping transaction.
Online shopping has been a practice that many Guam residents have adopted since the popularity of online commerce soared in the late 1990s. Many have since remained online shoppers, and online retailers have become a serious competition for the local retail industry.
But the competition turned out to be not as threatening as it was first predicted, according to Jean Li, manager of JML Investment Inc., which holds a Furla franchise in Guam.
“In the beginning, there was a significant drop in our sales —maybe 20 to 30 percent,” says Li, who manages two Furla shops in Tumon Sands Plaza and at DFS Galleria. “Online shopping was predicted to result in less traffic coming to shops. But over the years, customers started coming back.”
Li’s observation is pretty much consistent with recent analysis by market experts who are amending their earlier prediction that shoppers would be riveted to their computer desk to order every product that they need. More than 10 years later, online stores have become an established part of the retailing world but market analysts say the early predictions appear unlikely to take place.
Guam retailers say the tangible aspects of shopping are keeping customers buying stuff in the real world. “A lot of customers are more into I-want-know-what-it-actually-looks like before buying an item,” says Li.
Kathy Bristol, owner of AB Sports, a sports clothing shop located at the Guam Premium Outlets, agrees. “Shoppers want to be able to see the product and try it on. They want to feel it and see its quality at the time they are buying it.”
Many find the process and costs of returning an item bought online too laborious. They also have to deal with security issues involving their credit card.
Human interaction is another aspect of traditional shopping that the cyberworld cannot offer.
Guam consumers appreciate great customer service,” Bristol says. “By communicating with your customers, you learn what they need and you develop customer loyalty. The interaction between the management and the customers is one thing that keeps them coming back to your store.”
Li says Furla recognizes the critical role that marketing plays in attracting and keeping high-value customers. “Our VIP customers get discounts, except when the items are on sale. We personally call them when we have new arrivals,” Li says.
One sure way for the local retail industry to keep afloat, Li says, is to reach out to the local market. “Our advertisement targets the bigger picture — the entire community. Tumon is volatile. You worry about the number of tourists week by week. If there’s a typhoon or earthquake, there will be departures and no arrivals the next day. That’s why it is more important to focus on the island community in general,” Li says.