E-shopping slowly taking hold

Online retailing is beginning to take hold of young consumers in Myanmar thanks to a growing awareness of social networking websites as well as a growing taste for the finer things.

For 20-year-old student Ma Su Thandar Hlaing, shopping online is the cheapest and best way to get cutting edge goods.

“I started using online shopping websites last year,” she said. “I always buy shoes, bags and accessories from shopping websites. I like shopping online because I can get the newest items and imports.”

E-commerce cuts the overhead costs of traditional shops but comes with its own challenges, including low internet penetration, an unsophisticated payments system and high Yangon delivery cost, shop owners say.

Although online retailing has become big business in many markets around the world, domestic online shop owners said internet-based commerce is still in its infancy in Myanmar and most run the business on a part-time basis.

“People can purchase anything they want after reading the descriptions by simply clicking,” said U Pyae Phyoe, the owner of Yangon Online Store, which operates through its stand-alone website.

“But Myanmar people do not have much experience with online shopping, and continue visiting stores.”

U Kyaw Aye Naing, owner of Shwe 99 online store, said e-commerce spending habits tend to match those in the real world and increase markedly around major holidays such as Christmas and Thadingyut.

Daw Myint Myint Wai, owner of Sin Min Pasoe Myanmar, said she opened the store in 2011 after witnessing growing public interest. The site initially focused on selling longyis but expanded into goods aimed at young people after a number of customer requests, she added.

“Many customers are between 15 and 25 years old, so I began selling the accessories that these customers want to buy,” she said.

Customers looking to purchase clothes over the internet can browse through photos of items on websites or Facebook pages. After placing an order via email or phone call, the store owner will then send a courier to the customer’s door to collect payment.

If the goods must be imported it can take two more weeks for it to be delivered, although some stores keep inventory on hand in Myanmar and can deliver faster.

Although it costs significantly less to open and operate an online shop, owners said a number of barriers prevent further expansion.

Daw Myint Myint Wai said deliveries are slow and expensive given the heavy traffic in Yangon, which is home to the majority of the country’s online shops.

Payments also present a challenge, with online transfers rare, inefficient and deemed unreliable. As a result, shops rely on the same person-to-person method used to deliver goods.

However, there are hopes that electronic payments will improve in future.

Co-operative Bank media and marketing manager U Thein Myint said online shopping is slowly catching on, adding that customers can make payments through the bank with MasterCard and Visa.

U Kyaw Aye Naing added another issue, although one that is common everywhere: Customers often complain that the products they receive do not match the descriptions online, despite the firm’s attempts to explain details clearly.

“I prefer traditional shops because I can see and touch the things I want to buy,” said 20-year-old Ko Ye Min Htut.

Traditional shop owners say the marketplace is changing in Myanmar. Pinky Fashion shop in busy Mingalar Market has contemplated offering online sales to complement its traditional street-front operations, said manager Ma Nilar.

“So far it seems too expensive to create an online presence due to delivery costs, difficulty making payments and ensuring that products meet customer’s demands,” she said.

However, if these barriers are addressed, Ma Nilar said it is likely the firm will move at least partly online.

“If online shopping keeps on developing, I will use online shopping as my secondary business, but it’s a ways away from becoming my main business.”

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/8510-e-shopping-slowly-taking-hold.html