Compiled by RACHNA LAL
Welcome to Hard Talk, where we pose questions to both top executives and budding entrepreneurs on some of the major issues involving business.
Dr Bansod
The growth of online shopping is increasing rapidly all over the world. However, online shopping in Fiji is still at the introductory stage of the business cycle.
It is quite obvious Fiji is lagging behind other countries in taking full advantage of online shopping.
The question is why do we need online shopping when we have established brick and mortar stores?
Having online shopping as another shopping platform against brick and mortar store will have healthy competition and choices for Fijian consumers, says a research expert, Dr Anirudha Bansod.
Dr Bansod, academic at the Fiji National University, recently conducted a survey in the area of online shopping.
His responses are based his knowledge and the information collected through his survey.
Dr Bansod labelled the following as factors explaining the low incidence of online shopping in Fiji based on research results:
l Uncertainty, trust and risk
l Low income earnings
l Non-eligibility to gain credit card
l Habitual buying from Brick and Mortar store
l Lack of knowledge in online shopping
l Lack of access to a computer and the internet
Questions for Dr Anirudha Bansod, an academic at the Fiji National University:
1. What benefits are there of online shopping?
Online shopping has numerous advantages compared to physical store. In Brick and- Mortar stores, the tangible environment and physical presence of merchandise, sales assistants and other customers are important traits that contribute to consumers’ problem solving in the purchasing process.
Apart from numerous benefits what consumers derive from online shopping, government and country also benefits from online shopping platform.
Today, when we discuss about online shopping, we only think in one direction, i.e. import of goods from overseas, where consumer are buying online from overseas online portals.
However, we need to think the use of ecommerce for exports as well. In Fiji, we have lot of products and services to offer to the consumer overseas. Currently, we are using traditional method of international business.
When our local businesses have full-operated websites, it not only informs about the products and services to international customers, but also has provisions for them to place an order and get the products delivered in their home country.
Today, the service delivery is sophisticated all around the globe and major players like TNT, DHL, EMS and FedEx express can deliver within a week time period anywhere in the world.
When we have more exports, means our balance of payment deficit is reduced and it will help to the economy. Today, our biggest concern is our import is high and export is less.
2. What was the conclusion of your survey?
The key findings are Fijians are not aware about online shopping platform. It is very new or foreign term for many people. Some people heard about online shopping but never engaged in the actual purchase of goods or services online. The survey tried to identify the factors affecting Fiji consumers to go online shopping.
3. What are the positives and negatives of online shopping to consumers and government?
As mentioned above, online shopping is completely new shopping platform for Fiji and Pacific Nations. It is in early stages, where slowly people of the Pacific Region are embracing this easy, less-complicated, fast and reliable shopping platform.
As we all know the major cost involved in the final price to consumer is distribution channel. Online shopping is bypassing the traditional distribution and market intermediaries like wholesaler, distributor, agents, retailer, clearing and forwarding agent to direct connectivity from seller to end user consumer.
4. Looking at online shopping from an economic point of view, does online shopping affect the economy?
Today, in our economy, import is injected more than the exports. According to Bureau of statistics (2013), we have close to $3 billion of imports every year and less than $ 1 billion of exports. This is not a good sign for the economy, where our own consumption is very high and the entire economy is import based.
However, if we need to strengthen our economy, we cannot purely rely on our traditional export sector like, tourism, fisheries, agriculture and sugar exports. We need to reengineer the business process and identify the new industries which can start looking in new direction of marketing.
Our existing retailer should start looking outside the box and don’t depend purely on import based business model and local market consumption, but use the technology and explore the products and services to new market all over the world. Technology eased the market entry in international market. We can export and increase our economy with the help of online shopping and ecommerce.
5. Are we losing out any taxes in any form through online shopping?
Today, we do not have any mechanism to charge taxes on goods bought from web portal from overseas. Therefore, we cannot say whether we are losing or earning. However, common sense prevails and informs us that neither Fijian Government nor society is making money on online trading; because we do not have any law, decree or tax method to charge on online shopping in Fiji.
In year 2011, Australia faced acute problem of online shopping industry suddenly rising and eating the market share of traditional brick and mortar store.
Technology stores like Harvey Norman, Good Guys, Clive Peters and others who got affected because of online shopping started claiming that Australian government need to impose online shopping or ecommerce shopping taxes on consumer as well as online and ecommerce stores.
Since online shopping is a new concept in Fiji, we need to establish the policy structure, where society, Fijian government and consumer watchdogs like Commerce Commission, Consumer Council of Fiji, Fiji Retailers Association, Prices and Incomes Board of Fiji and other statutory body play crucial role in drafting the new policy of fair trade competition.
The new policy structure should not give any advantage or disadvantage to any particular platform and have fair trading practice where both traditional brick and mortar store and online shopping store do the business at equal level. However, having policy document will certainly improve the government revenue and protect Fiji consumers from online shopping fraud.
6. The recent case of Pink Window Creations who could not deliver goods after consumers paid the money to the company, what you think on this issue?
Well, unless we know the exact nature of problem, it is difficult to comment on this issue. However, it is learning curve for new entrepreneurs, who wish to enter in to e-business. Whether you use physical store platform or e-commerce platform, the fundamental of business remains same.
The old concept of trust, commitment, ethics, morals and values definitely play important role. However, when new entrepreneurs start their venture in e-commerce, they need to be very cautious on their business operations and level of commitment. As such, the e-commerce is young shopping platform and there is no physical presence; level of commitment and trust is paramount in running the business operations.
Young entrepreneurs in e-commerce should not lose hope and build your business venture on traditional value set. Once your consistency of good business practices is in the market, there should not be any issue to run the e-commerce business successfully.
7. Since you identified the problems in online shopping in Fiji, what corrective measures do you recommend?
We need to create an environment of online shopping by creating awareness among the consumers. Just one online company fall out, we should not make our judgement on the entire online platform.
We need to create infrastructure like access to computers and internet, cheaper internet package for the society of Fiji, bankers allowing lower limit of income for credit card applicants. We also need a policy document and legislation to protect the consumers of Fiji.
Today, we don’t have any structured policy document which protects the rights of Fiji residents. Government of Fiji needs to set a division, who look after the policy document, legislation, treating with other Government in case of Fiji customers is victim of online shopping.
Similarly, the retail industry need paradigm shift in moving from traditional retail store to online store. Today, the global market is boundary less. You can sale anywhere on the world once you understand the business model in online shopping. Unfortunately, most of the traditional retailers are happy in their old pattern of business model.
When our retail industry reengineers their business process model, their market reach is not only confined to Fiji market, but retailer can start selling their products and services to the entire globe. Today, our import is high and export is very less. With the online platform, we can embrace the entire world and do the business and sale our products and services to the world market. This will help to boost our economy and we will not struggle with lower GDP.
Quicks facts about Dr Bansod
l Born in India
l Worked in India, Middle East, New Zealand, Australia and Fiji
l PhD in Marketing with specialisation in Relational Marketing in technology products from The University of Notre dame, Western Australia
l Research interest includes sales person characteristics, New products launches, relational marketing, online shopping and technological innovations
l Love Indian cricket team and Fiji 7s Rugby team
l Hobbies include, listening music (Ghazal), Hindi movies, sports, meditation, travelling, networking, technology and keeping fit
l Ambitious, dreamer and love to be connected with friends and one day wishes to start his NGO for serving needy people selflessly
l Live life to the fullest and if you can’t do good to the people, then you don’t have right to do bad for them
l Believes on religion of humanity, which binds all human being connected to each other on this planet
l Dr Anirudha Bansod can be contacted on andybansod@hotmail.com for further opinion, explanation, criticism, discussion or feedback.
