Online shopping boom in Asia

Online shopping boom in Asia

Thu, Dec 13, 2012

The Straits Times

 

Online shopping boom in Asia

by Lee Seok Hwai

 

TAIPEI - One consumer ordered a year's supply of sanitary napkins. Another, who was not happy with a newly purchased notebook computer, returned it after more than a week.

And if that mail-order dress does not fit, the courier who delivered it will take it back to the store, free of charge.

This is the world of online shopping for millions of increasingly wired but also increasingly time-starved consumers in Asia's biggest and most developed economies. It is instant gratification at the click of a button, with after-sales service as a bonus.

Last year, online merchants rang up sales totalling $344.6 billion in China, Japan, South Korea, Taiwan and Hong Kong. All five economies saw significant growth compared to the year before, ranging from 8 per cent in the relatively mature market of Japan, to 67.8 per cent in China, which has the lowest Internet penetration rate of just 40 per cent.

In Singapore, consumers spent $1.4 billion, or 33 per cent more than in 2010, according to online payment firm PayPal and research company Nielsen.

A case in point: China's largest online shopping portal Taobao reported record one-day sales of 19 billion yuan (S$3.7 billion) on Nov11, when the country marked "Singles' Day".

Bank executive Guan Xin was one of the more than 200 million Chinese - attached or otherwise - who marked that day with some virtual retail therapy. She spent about 3,000 yuan in total on a pair of running shoes, an MP4 player, a mobile phone charger, and even a mop and pail, whose prices were heavily marked down.

"It's faster to buy online. I already knew what I wanted," said Ms Guan, 27.

So did one of her friends, who bought a year's supply of sanitary napkins.

Ms Guan is archetypal of the region's online shopper, according to analysts: Aged between late teens and 30s, willing and able to spend, as well as tech-savvy enough to search for the best bargains with just a few clicks.

And the types of products they buy are expanding beyond long-time favourites clothes and accessories, electronic gadgets and air tickets, to daily necessities and food.

The Japanese now make 20 per cent of their daily purchases at online stores, according to a recent survey by Nikkei business daily.

In Taiwan, top online retailer PChome sold a million packs of toilet paper rolls last year.
The item was ranked the second most popular - after consumer electronics - among NT$12.3 billion (S$516 million) worth of goods the company sold.

The trend presumably owes itself to good service.

Free delivery, sometimes with no minimum spending required, has become de rigueur and is a big plus for grocery purchases.

Many retailers also offer free returns and refunds - no questions asked - for faulty items or goods still in saleable condition.

Web services engineer Lee Yi-chiun, 37, once returned a notebook computer with a faulty screen to the online retailing arm of Yahoo Taiwan after using it for over a week.

"I got a full refund promptly, no problem," said Mr Lee, who is one of the company's "platinum" members, having racked up more than NT$1 million worth of purchases, including a washing machine and a refrigerator.

"I don't think a bricks-and- mortar shop would have been as generous," he said.

In China, shoppers at clothing retailer Vancl do not need to pay a cent until after the item is delivered to their door and they are happy with the size and fit. Those who are not satisfied with the garment - or are stricken with buyer's remorse - can send it back.

And lest shopping from the comfort of one's desk is not convenient enough, the prevalence of smartphones these days promises to bring the mall to consumers, wherever they may be.

In South Korea - home of Samsung - 10 million out of 37 million online shoppers last year made purchases on their mobile devices, according to the Korea Chamber of Commerce and Industry.

In Japan, purchases using smartphones make up 30 per cent of all online sales, while Hong Kong saw 13 per cent of online purchases carried out on mobile phones and 11 per cent on tablets, according to the findings of a Visa survey of 8,000 Internet users from Hong Kong, South Korea, Japan, Singapore, Vietnam, Russia, the Philippines and South Africa this year.

Still, the online retail industry lags far behind its bricks-and-mortar counterparts.

Online retail sales in Japan, for instance, reached 8.5 trillion yen (S$125 billion) last year, but the figure accounted for just 2.8 per cent of total personal consumption in Japan.

The potential for the industry is thus immense, even though growth is showing signs of slowing years in the mature economies of Japan, South Korea, Taiwan and Hong Kong.

But a MasterCard survey of online shopping attitudes in 25 economies early this year found a bigger increase in the number of consumers in the emerging markets of Thailand, Malaysia, the Philippines and Indonesia who access the Internet to do their shopping or have bought something online in the past three months, compared to the developed economies.

Singaporeans signing up for online courses

 

 

By Melissa Sim
The Straits Times
Tuesday, Nov 20, 2012

     

Every Sunday, Ms Tan Yan Ling, 24, attends two hours of design lectures conducted by a professor from an Ivy League university.

But she did not have to to fill in application forms to get into the course or university, and she did not have to leave the comfort of her home in Singapore.

All she did was sign up for an account with online learning site Coursera and register for the University of Pennsylvania course.

What's more, the course is completely free.

Sites offering mass open online courses such as Coursera, edX and Udacity are partnering top universities and industry professionals, and leading the way in providing free world-class online education.

At the moment, Coursera offers 204 courses, while edX has nine courses and Udacity has 18.

These courses span an array of subjects from music and history to science and computing.

So anyone with a computer and an Internet connection can take Introduction To Computer Science from Harvard or Introduction To Astronomy from Stanford just by signing up.

Udacity, launched in January this year, has 800,000 enrolments, while Coursera, officially launched in April, has more than a million students. EdX was unable to respond by press time.

The Coursera spokesman told SundayLife! that as of August this year, about 9,000 of their students are from Singapore.

Associate Professor Manu Kapur, who heads the Learning Sciences Lab which researches learning and teaching at the National Institute of Education, says mass open online courses are catching on because of increasing competition among universities, the higher costs of tertiary education, and "a real hunger and enthusiasm for learning specialised skills and knowledge around the world".

Ms Tan, a design consultant, spends two hours a week watching video lectures, and two to three hours on her assignments, which include drawing a chair from different perspectives, and solving design problems and submitting them for peer grading, which she says has been very constructive and helpful.

Most courses are structured this way, with lectures, quizzes, peer-graded assignments and optional online forum discussions.

Udacity's head of business strategy and planning Clarissa Shen says the platform is "not just about streaming a physical classroom and putting what works in the classroom online".

Students also learn by "doing and not by listening", as is the case in a regular distance learning course, she says.

Courses usually last from four to 15 weeks and require anything from two to 15 hours of commitment each week.

Ms Tan says it was difficult having to juggle work, social commitments and the course.

She and a friend, Ms Samantha Yuen, 34, tried sharing notes and ideas to help each other through a course offered by the University of Pennsylvania on Gamification - applying game scenarios to solve real-life problems - but both were unable to complete the final assignment in time, and were not given a completion certificate.

Certificates of completion are offered for some courses, at the discretion of the university and instructor, and can be a real motivating factor for students.

Ms Erin Jeong, 24, an account executive, managed to complete an Introduction to Computer Science offered by Stanford University and received a completion certificate for her work.

"This particular course was for beginners like me and I managed to finish each week's worth of work way ahead of the deadline."

She says the certificate was a big motivator because it is "physical proof to show others, and yourself even, that you studied a particular course".

For Ms Yuen, a digital content manager, taking a Coursera course in Human-Computer Interaction, meant being able to take a course not usually offered in Singapore.

The hospitality graduate says she picked up most of her IT skills on the job and could not find "much digital training in Singapore".

Previous attempts to look for such courses were unsuccessful as the ones she found were held in Australia and cost between $2,000 and $4,000, which she felt was too expensive.

So when Coursera offered a Human-Computer Interaction course taught by Stanford University, she immediately signed up.

"It's definitely an opportunity to learn something not typically offered as a structure course in Singapore, and for free."

National University of Singapore computer engineering undergraduate Goh Eng Wei, 24, says the quality of the course he is getting at Coursera is "comparable if not better than what he is getting at university", in terms of teaching and content.

He is currently taking two courses: Cryptography from Stanford University and Neural Networks for Machine Learning from the University of Toronto.

But how is it possible that quality education is being dished out for free?

Coursera says it has secured US$22 million (S$27 million) in funding, while Udacity says it has a Series A investment, which in Silicon Valley speak usually means between US$2 million and US$10 million in venture capital investment.

EdX did not respond to press queries, but reports show that its founding partners Massachusetts Instutute of Technology and Harvard have committed a combined US$60 million in institutional support, grants and philanthropy.

The platforms are also exploring revenue streams such as opt-in job placement programmes and the possibility of paid certification.

But not all are convinced of the efficacy of such courses. Associate Professor Cho Hichang, from the department of communications and new media at the National University of Singapore, points out that "online learning can be a one way transfer where the teacher talks to the students. There are no group projects and the personal touch is missing".

He adds that findings on e-learning are "mixed".

"Some studies show it is almost comparable but not better than traditional classroom learning (although others have found the opposite). Some studies have found that students are less satisfied with online learning," he says.

While Prof Cho acknowledges that online learning is convenient and cost effective as one video can reach out to people all over the world, he feels that a combination of online and traditional learning is probably the best approach.

Ms Joyce Huang, who founded a group called SG Geek Girls, which teaches computer skills to women at minimal cost, says she often sends her students online videos to watch and then holds weekend tutorials for those who need extra help.

The 25-year-old marketing executive, who takes only a $10 administrative fee from students, is very much in favour of "democratising education and making it available to everybody".

Undergraduate Goh also thinks the concept of free online courses is "an amazing idea". "Education should not be restricted to only those who are rich, but those who want to do something good with their lives."

So perhaps mass open online courses are not just another passing Internet fad.

Nanyang Technological University Professor Kam Chan Hin, associate provost for undergraduate education, says the university has developed an e-learning platform for its own students but is "exploring partnerships with leading players of the e-learning consortia such as Coursera, edX, and Udacity".

NIE's Prof Kapur says: "Given that there are now efforts to look into designing accreditation systems for such courses, they have the potential to become even more popular because they allow learning no matter where you are, as long as you have an Internet connection."

Three timeless investment tips

September 24, 2012

          

Avoid predicting the future. You will get it wrong more often than you think. Nobody has a crystal ball.

 

FEATURE

By Lee Ching Wei
1. Pay attention to the cost of investingCost matters.

It is one of the few things in investment that is predictable and controllable. Every dollar paid in cost is a dollar less in potential profit. And it all adds up over the long term.

The obvious costs of investing include administration/processing fee, entry fee, transaction fee, brokerage, commission, stamp duty and taxes.

The less obvious ones are opportunity cost (what you give up for taking a specific action), personal flexibility (e.g. obligation to service your mortgage for the next 20 years), and stress (e.g. losing sleep over an investment).

2. You know less than you thinkAvoid predicting the future. You will get it wrong more often than you think. Nobody has a crystal ball.

Yet, people do it all the time. Investment analysts/stock brokers compile lists of stocks with Buy/Sell recommendations based on their predictions of future company performance. Economists make calls on whether interest rates would rise or fall ahead of reserve bank meetings. Real estate agents produce charts showing the price paths of property prices for the next 20 years.

It’s ok to say “I don’t know”. Really.

Because the sooner you realise what you don’t know, the sooner you can direct your energy and effort to the things you do know.

3. Keep it simple and focus on the things that matter
There are a million ways to make a million dollars, and you don’t need to learn them all to be a millionaire. You just need to know a few really, really well.

The same goes for investing. Tens of thousands of different investment products and strategies exist, and more are being “invented” every day. Yet, only a few really matter. Focus on the things that matter, and understand them really, really well.

The writer is the founder of www.iMoney.my, a price comparison website in Malaysia. They can be contacted at hello@imoney.my.

Why diversification in investment is important

September 10, 2012

          

Here's some guidelines why you should never "put all your eggs in one basket".

 

By Lee Ching Wei

Diversification is by far the most underrated and least understood concept in investing. Intuitively, it should make sense. You shouldn’t “put all your eggs in one basket”.

The US Securities and Exchange Commission provides an excellent example of this concept on its website:

“Have you ever noticed that street vendors often sell seemingly unrelated products – such as umbrellas and sunglasses? Initially, that may seem odd. After all, when would a person buy both items at the same time? Probably never – and that’s the point. Street vendors know that when it’s raining, it’s easier to sell umbrellas but harder to sell sunglasses. And when it’s sunny, the reverse is true. By selling both items – in other words, by diversifying the product line – the vendor can reduce the risk of losing money on any given day” Source: www.sec.gov

The key takeaway is in the last sentence. When we diversify, we reduce the risk of losing money. Many investors claim to understand this, but their actions suggest otherwise.

Think having a 50 stock portfolio provides you with enough diversification? Not if all 50 companies operate in the same country and are susceptible to the same economic forces.

Think having all your money in the local bank gives you virtually no chance of losing money? Not if the currency depreciates sharply (yes, you may not “lose” money when the currency depreciates but the purchasing power of your money decreases. We are living in a “global economy” after all).

Think having a few investment properties protects you from a weak property market? Not if all your properties are of similar type (e.g. residential apartments) and are located in the same geography.

In fact, multiple mortgages often increase the risk, as any gains or losses are amplified.
So what constitutes a well diversified portfolio?

Generally, a well diversified portfolio has little exposure to any particular factor or event. These factors or events could be as broad as the economic conditions of a country, or as specific as the location of a property.

The difficulty is in identifying and reducing your exposure to as many of these factors or events. As a rule of thumb, there are two ways you could improve the diversification of your investment portfolio:

• Increase the number of investments, or

• Increase the type of investments.

A portfolio of 50 stocks is almost always less diversified than a portfolio of 5,000 stocks, and the latter is almost always less diversified than a portfolio of 5,000 stocks with some allocations to bonds and cash.

People often think you need a large pool of money to have a diversified portfolio. After all, how else can you own a portfolio of 5,000 companies if you only have a few thousand ringgit to invest?

The good news is – this is a myth. Today, with as little as a couple of thousand ringgit, it is possible to own thousands of companies and hundreds of residential apartments, office buildings or shopping malls from all around the world – through exchange trade funds (ETFs) and Real Estate Investment Trusts (REITs).

The best part is – it often does not cost much to do this.

The writer is the founder of iMoney.my, a price comparison website in Malaysia. They can be contacted at hello@imoney.my.
 

Millionaires’ secret to success

Report from The STAR (Malaysia) dated 18 August 2012 :-

Millionaires’ secret to success

PETALING JAYA: Ganesh Kumar Bangah made his first million at the age of 23.

The secret, he said, was as simple as knowing what people needed and delivering it to them.

“I knew what I was good at, which was IT. I used that to come up with something of value to the world.

“I also worked hard and persevered until I reached the goals I had set for myself,” said Ganesh, now 33 and the CEO of MOL Global Bhd, a company worth over RM1bil.

Young and rich: Ganesh (left) and Yap made their first million at the age of 23 and 26 respectively.

He said that even when he was only 15, he had been using his skills to make money, like repairing his teachers' computers for a fee.

At the age of 20, he started his own company, which made him a millionaire in three years.

“Be focused and set new goals for yourself to keep climbing higher. Real wealth is the satisfaction you get when you overcome a new challenge that brings rewards. Financial wealth should just be a by-product.”

Feng shui master and multi-millionaire Joey Yap said learning to make good use of time was a key ingredient to achieving financial success.

“In business, time is money, so make sure you use your time to acquire things of good value. Find out what your strengths are, work on your weaknesses and hone your talents,” said Yap, 35, who made his first million at age 26 by selling his first feng shui home study course.

However, having RM1mil does not necessarily make people feel rich, especially for those raising children in the city.

Carol Leong, 57, a mother of three, said it costs more than the amount for an average family to live in the city and raise a child to adulthood.

“There are medical bills, tuition fees, various expenses and their education to pay for. For our family, it has definitely come up to more than RM1mil per child,” she said.

Leong, a lawyer, said she and her businessman husband had placed their money in various investments, which in the long run had helped pay for tertiary education overseas for their three children.

“I would advise young parents living in the city and who are just starting a family to invest to secure some income for the future,” she added.

China's online population rises to 538 million

China's online population rises to 538 million

Published on Jul 19, 2012

BEIJING (AP) - China's population of Internet users, already the world's biggest, has risen to 538 million, driven by rapid growth in wireless Web surfing, an industry group said on Thursday 18 July 2012.

The latest figure represents an 11 per cent increase from a year earlier, according to the report by the China Internet Network Information Center. The government sanctioned group said that raised the share of China's population that uses the Internet to 39.9 per cent.

The number of people who go online from mobile phones and other wireless devices rose to 388 million, the group said. That was up 22 per cent from a year earlier.

China's communist government encourages Internet use for business and education but tries to block access to material considered subversive or obscene. Authorities tightened controls after social networking and other websites played a key role in protests that brought down governments in Egypt and Tunisia.

How to look good in every photo

July 13, 2012

Get the perfect profile picture

 

Fed up of being tagged looking terrible? Check out our tips for mastering the perfect pose and start looking your best in every shot.

Look to your rightA US study conducted by Wake Forest University has revealed that the left side of the face is more attractive than the right, apparently due to the fact that this side of the face shows more emotion. To capture the perfect profile picture, look slightly to the right to reveal your ‘best’ side. This can also help to give the illusion of a slimmer face for those with rounder faces.

Choose your makeup carefullyFor the perfect photo-ready appearance, make sure you avoid light reflective or mineral foundations containing high amounts of titanium dioxide (a reflective pigment). Although these foundations are great for an everyday luminous look, the flash of a camera can quickly transform your dewy complexion to a ghostly white one as the white light reflects back from the camera. Once you have applied a suitable foundation, finish your look with some face powder to help eliminate shine.

Accentuate your best featuresTo look your sparkling best in photos, make sure you emphasise your favourite features to make them the standout feature in your snapshot. Try playing up your eyes with some eyeliner or false lashes. Alternatively, perk up your pout with some bright lipstick. Also, make the most of your best body features with an outfit that complements your shape and colouring.

Look away from the lensNobody wants glaring red or half-shut eyes ruining an otherwise great photo, so make sure you avoid this by focusing your eyes just slightly above or below the lens. Looking directly at the lens causes light to flash off the retina, leading to the red eye effect. Looking slightly away from the camera will also reduce the risk of those mid-blink shots.

Avoid “red eye” shotsAs “red eye” in photographs is caused by light reflecting off the back of the eye, those with large pupils are more likely to suffer from this pesky problem. If averting your gaze from the camera is not doing the trick, another tip for alleviating the red eye effect is to make sure photos are taken in well lit environment or to look at a bright light just prior to the photograph being taken to make your pupils smaller.

Banish the double chinThere’s nothing worse than spotting a picture of yourself sporting a double chin where you previously only had one, yet sadly this happens to the best of us. To avoid the appearance of a double chin in photographs, make sure that the camera is just above or at your eye level. Also, try tilting your head up and jutting your jaw out slightly – you may want to practise this one first in the mirror to stay looking natural!