The impact of e-commerce on traditional shopping

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The impact of e-commerce on traditional shopping

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  • Good morning everyone! My name is Walailak Thung-Ngoen I would like to welcome you to my presentation and I’m going to talk about “The impact of e-commerce on traditional shopping”
  • First of all, I ’ve divided my presentation into 4 parts. Firstly, Secondly, Next, Finally, we’re going to look at Future shopping styles
  • It is difficult to say when e-commerce began but most of research said that e-commerce can be usefully divided into 3 periods. Beginning in 1995 : A period of technology driven .Thousands of dot.com companies were formed, especially in USA. E-commerce was a totally new way of shopping . The number of online user in USA and UK has growth significantly during this period. E-commerce entered a period of consolidation since 2001,, Traditional firms learned how to use web to strengthen their market position. A third period is started in 2006 that customer and community are involved. Social networking is becoming more important to do business. Facebook, For example, ,
  • Expense : Display , hire employer and maintenance cost 2) Inconvenient : Disabled and worker ,, Many people have to work. Shopping mall normally close very early so they have less opportunity to go shopping. 3) Difficulty in price comparison : With traditional shopping you will need to search from one shop in the mall to the other looking for what you want, sometimes driving all over town to several different stores
  • Well... What is a plausible solution? I would say.... “Online shopping”.....
  • So,, Let’s take a look on the table,, How online shopping solve the main problems of traditional shopping. First,, Low price,, because online retail stores don’t have an overhead expense, no running and administration cost. As a result, low cost bring to low price as well. Second benefit of online shopping is ‘Convenient’,, Definitely, everyone knows that purchasing product online is very easy. Online shopping allows consumers to shop at the convenience of their own home, and to save travelling time to retail stores and spend their time on other important tasks and hobbies. with 24-hr access . Finding things online is pretty easy. You just open up a search engine like Google and type in what you are looking for. Online shopping are easily to compare prices. With the online tools that enable product comparison, consumers can compare product prices and features to make a better decision with less effort.
  • Disadvantage of online shopping Hidden cost : Advertising cost , Shipping cost, there are many online stores that will ship within a certain area for free but many times if you are located outside of the city or area you will need to pay hefty shipping prices, Privacy is the number one reason that non-online shoppers do not shop online. Many people don’t trust the privacy of the Internet and are concerned with their credit card. Security is another concern when it comes to online store. With online shopping there is no way of you knowing that someone is stealing your data Inconvenient : Elderly people,, My mom for example, she doesn’t know even how to use the computer,, This not fair for my mom! haha Advantages of Traditional shopping a good way to make social connections,, It is possible to find ur soulmate when u go shopping,, See! Hahaha Face to face comm : Some people like to talk with stranger,, I mean a shop girls in the store. feel and see the texture of color
  • However! I agree with Lokken who said that “ Traditional retail shopping will not be reduced or replaced by online shopping in the future ” because people feel bored at home. U have to think about it,, how many shoppers go to Asda or West Quay on weekend? Traditional shopping is our routine. We are human who need social interaction,, we need to talk, hang out and go shopping outside with our family or friend. Please imagine! Nobody go shopping in West quay on holiday,, That’s horrible …. I don’t want to live in this world!
  • The impact of e-commerce on traditional shopping

    1. 1. The impact of e-commerce on traditional shopping Walailak Thung-Ngoen September 14 , 2010
    2. 2. Outline <ul><li>The development of e-commerce </li></ul><ul><li>Main problems with traditional shopping </li></ul><ul><li>Plausible solution </li></ul><ul><li>Critical evaluation of future shopping styles </li></ul>
    3. 3. 1.The development of e-commerce <ul><li>1995-2000 : Innovation </li></ul><ul><li>2001-2005 : Consolidation </li></ul><ul><li>2006- Present : Reinvention </li></ul><ul><li>Laudon ,K.C. & Traver, C.G (2010) E-Commerce 2010, 6th ed.,New Jersey,Pearson education,Inc., </li></ul>
    4. 4. 2. Main problems with traditional shopping <ul><li>Expense </li></ul><ul><li>Inconvenient </li></ul><ul><li>Difficulty in price comparision </li></ul>
    5. 5. 3. Plausible solution <ul><li>“ Online shopping” </li></ul>
    6. 6. Traditional shopping vs online shopping (Compiled from different sources by Thung-Ngoen W. ) Shopping style Tradiitional shopping Online shopping Factor 1. Price High price Low price 2.Convenien ce Inconvenient More convenient 3. Price comparision Difficult to compare prices Easy to compare prices
    7. 7. 4 . Critical evaluation of future shopping styles (1) <ul><li>US online retail sales are forecast 10% compound annual growth rate by 2014 (Forrester research) </li></ul><ul><li>Online sales now account for almost 10% of total retail sales in the UK (BBC website,2010) </li></ul><ul><li>  The most rapid growth is among teenagers and old adults.  ( Laudon and Traver , 2010 ) </li></ul><ul><li>Source : BBC news,1 February 2010 Available : http://news.bbc.co.uk/1/hi/business/8490207.stm [Accessed 07/09/10] </li></ul>
    8. 8. <ul><li>Advantages of Traditional shopping </li></ul><ul><li>Social interaction </li></ul><ul><li>Face-to-face communication </li></ul><ul><li>Shopping experience : touch and feel products </li></ul>4 . Critical evaluation of future shopping styles (2) <ul><li>Disadvantage s of E-shopping </li></ul><ul><li>Hidden cost of online shopping </li></ul><ul><li>Security and privacy : Cybercrime </li></ul><ul><li>Inconvenient : Children or elderly people </li></ul>Source : Social Media Marketing Tactics – How To Find The Best http://www.justinharrison.com/page/10
    9. 9. “ Traditional retail shopping will not be reduced or replaced by online shopping in the future” (Lokken , 2003,p131)
    10. 10. References <ul><li>Kim,J.U., Kim,W.J., & Park,S.C., Computers in Human Behavior. Consumer perceptions on web advertisements and motivation factors to purchase in the online shopping, 26 (1),pp.1208-1222, Available: http://www.sciencedirect.com/science/journal/07475632 [Accessed: 5th September 2010] </li></ul><ul><li>  Laudon ,K.C. & Traver, C.G (2010) E-Commerce 2010, 6th ed.,New Jersey,Pearson education,Inc., </li></ul><ul><li>  Lokken, S. L. et al (2003), Comparing online and non-online shoppers. International Journal of Consumer Studies , 27 (2), pp. 126-133, Available: http://academic.csuohio.edu/holcombj/WEBSHOPPING.pdf [Accessed: 2nd September 2010] </li></ul><ul><li>  Mulpuru,S & Hult,P (2010) , US Online Retail Forecast, 2009 To 2014 [Online]. Available : http://www.forrester.com/rb/Research/us_online_retail_forecast%2C_2009_to_2014/q/id/56551/t/2 [Accessed: 1st September 2010] </li></ul><ul><li>Office of Fair Trading, 2007. Online shopping , [Online] UK: the Office of Fair Trading.Available at: <www.oft.gov.uk/shared_oft/reports/consumer.../oft921.pdf> [Accessed: 31 st August 2010] </li></ul><ul><li>Appendix </li></ul><ul><li>Social Media Marketing Tactics – How To Find The Best http://www.justinharrison.com/page/10 </li></ul>
    11. 11. Questions

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