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China’s online malls hope shoppers pick up on package pickup option

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thumbnailby Si Chen

WHAT’S HAPPENING

  • Chinese consumers are enthusiastic about the ease of online shopping, but dealing with packages has not been so simple. Two large online malls are helping to solve that inconvenience problem by offering package pickups at — where else? — convenience stores.
  • Tencent’s Buy QQ started an O2O (online to offline) service in partnership with three such stores — 7-Eleven, VanGO and OK, what Circle K is sometimes called — in Hong Kong (Sootoo.com, 10 September 2012). With this option, shoppers can have their packages delivered to one of 1,200 participating retailers. For now, the service is available only for deliveries to the island. Handling deliveries to convenience stores is Dimbuy, a HK logistics and e-shopping company.
  • Alibaba’s Tmall (Taobao Mall) is doing much of the same, but on the mainland. The service started in late October 2012 and covered just 5 cities and 580 convenience stores (TechinAsia.com, 25 October 2012). Tmall’s plan is to grow to five provinces and 1,300 collection points.
  • Picking up online purchases at a store means greater convenience, security and peace of mind for consumers. Retailers like it because it drives traffic; while in the store, consumers might buy snacks and sundries. Online shopping sites hope that this option will drive even more enthusiasm for e-commerce.

WHAT THIS MEANS TO BUSINESS

  • Alongside the rapid growth of online shopping in China are complaints about delivery problems. This package pickup model brings even more convenience to an already convenient method of shopping: Instead of having to wait at home or worry about packages getting stolen, consumers can opt for delivery to the C-store closest to their home.
  • For Chinese consumers on the fence about whether e-commerce is worth the hassle, Buy QQ and Tmall have removed yet another barrier.
  • Many Asian convenience stores already sell more than snacks and drinks. (They offer fresh produce, and some even have baristas, free videogames and exclusive products like Hello Kitty desserts.) Adding a package pickup service seems like a natural thing to do.

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