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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.
Lis 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 theres a typhoon or
earthquake, there will be departures and no arrivals the next day. Thats
why it is more important to focus on the island community in general,
Li says.
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