Which Shopping Is Better: Online Shop or Physical Shop - Essay Example

WHICH SHOPPING IS BETTER: ONLINE SHOP OR PHYSICAL SHOP? By Background and Rationale The internet is one inevitable andoverly influential element which was introduced by the new century, and which has significant impacts on almost every aspect of human living. Trade has not been spared in this new trend as store owners have been forced to either transfer their businesses online or at least have an operating online branch. As such, physical shopping, in which a consumer visits a physical shop, meets physical attendants, and acquires their products or services now has an online counterpart. In online shopping, the shopper remains physically, and what changes is the store in that it does not have to be physical. China is one of the economies where online trade is widely used as organizations such as JingDong, Tianmao, and Taobao conduct most of their trading online (Olivier 2013, n.p.). Physical shops continue to thrive too, such as Ming Cheung. With this in mind, shoppers have become confused by the question as to which one between the two is better when it comes to shopping, thus this study. Literature Review Griswold (2015, n.p) provides the scenario where Google, most popular as an online entity, decided to open a physical shop in March 2015 in London. This happened as a famous tagline, “clicks or bricks”, meaning online or physical shopping became more famous. Being an international leader in e-business, Google is likely to influence other business entities, such as China’s e-industries. Other online companies such as eBay and Etsy have also done this. FlorCruz (2015, n.p) explains that in China, the trend of going online is growing so fast that physical companies are beginning to be affected. It is estimated that by 2019, Chinese spending on e-shopping will be about 1 trillion US dollars from the current 307 billion US dollars. Organizations such as Li Ning Co. which deals with sportswear revealed that it is suffering and has closed over one thousand retail stalls all over china in the past two years.Jourdan (2014, n.p.) reports that brick-and-mortar shops are being overtaken by e-stores as is the case with Suning Commerce Group Co., which made 17 billion in 2014, an amount which Alibaba’s Tmall website transacted in a single day. It is stated that for physical stores to remain in the market, they should find other means of attracting and keeping customers. Current State of Knowledge A shop is made up of three main parts; the customer, the physical shop, and the personnel or store attendants. E-stores differ from physical stores in terms of these three factors. Again, both physical and online stores have advantages and disadvantages when it comes to shopping. Physical shopping can be termed as the traditional way of shopping in that it is done in the same way that it was done ages ago. One advantage of physical shopping is that the store is located in a physical location where shoppers can visit physically (Hsu&Bayarsaikhan 2012, p.168). As such, they do not require extra resources or knowledge to trace stores online. In short, physical shopping can be expensive in that it requires one to incur expenses such as fuel or bus fare to commute from home to the store (Hsiao 2009, p.86). A physical store is disadvantageous too in that setting it up requires a lot of materials, and it is therefore expensive for the owner. The second advantage is that physical customers can always bring other customers to the physical shop where they can view the products on display and buy the ones that they like. This is unlike in an online store where mostly customers shop alone, and in most cases, they search the specific things that they need. That way, they do not easily get exposed to new products (Lam 2011, p.91). The final advantage is that in physical stores, there are physical attendants who can guide one around or provide one-on-one information regarding the products being sold. This is much faster than searching for help or information in an online store for the computers cannot understand exactly what one needs like human attendants. E-shopping, like physical shopping, has advantages and disadvantages of its own (Bhatnagar & Ghose2004, p. 1352). First, since it does not require a physical location but an internet connection, it can be accessed from anywhere. In this way, a person can shop anywhere at any time without having to visit a physical store (Bagdoniene & Zemblyte 2009, p.3). Second, it does not require a lot of capital to set up and maintain since it is virtual. Second, the customers do not have to physically visit e-stores because they can buy their goods online. First of all, this makes e-shopping less tedious, and second, one does not have to spend time queuing, travelling, or using solid money to shop (Koiso-Kanttila 2005, p. 63). The same applies when it comes to searching for items. Since one does not have to physically move to find or explore, but to scroll and click on their computers, finding items or new goods is much simpler. This is because the items are listed on online catalogues which are easy to go through. The other advantage is that in e-shopping, the owner of the stores, so not have to employ attendants. This makes e-commerce cheaper to start and run (Business News Publishing 2013, p.18). The internet is a dangerous place where fraud happens daily. Hackers can access shoppers’ online transactions and mess with their finances. During online shopping, if the correct security measures are not followed, a shopper might lose their money if hackers access their details (Lantos 2015, p. 74). It is true that robberies and other forms of insecurity exist in physical shops. However, in comparison, it is likelier for an online crime to be committed than a physical one.The biggest disadvantage of e-shopping is that it requires computer-literacy. In short, if a customer cannot use a computer, or has no knowledge about the internet, they cannot conduct shopping online (Monsuwe, Dellaert, &Ruyter 2004, p.111). Therefore, it is clear that e-shopping discriminates against such people. Data Collection and Analysis The proposed study will seek to highlight which one between physical and online shopping is the best by collecting data from online databases regarding the preference of shopping in China. The proposal will analyse data, such as comparable sales between online and physical stores. The methodology will also use questionnaires to find out which kind of shopping is preferred by the consumers in China by directly asking them questions to capture realistic data. In analysing the findings from both cases, this study will be able to conclude which one between the two is best. According to Insights (2015, n.p.), business-to-consumer (B2C) online sales are the fastest growing in the world. Despite the fact that the sale of overall retail sales is slowing down, China’s online retail segment is expanding at an estimated rate of 25%. On average, it is estimated that by 2015, China’s retail sales will have grown three times more than the overall retail on the globe. Groceries and electronics account for the highest recorded penetration, standing at 20% and 3% penetration rates respectively. Further growth is expected in that the Chines population is fast in adapting to, and embracing technology. According to recent analyses, 80% of online shopping are done using smartphones, and of the overall shoppers, 20% of them shop weekly. Collectively, these factors have made china the leading online marketplace. As such, the penetration potential in China is still very high (Gong, Maddox, & Stump 2012, p.29). In studies conducted by Nielsen China, the findings showed that the higher percentage of the Chinese were willing to buy from online stores than in physical ones. Additionally e-commerce is growing at a rate of 120 %. Also revealed is that the use of e-shopping has been on the increase mostly for entertainment-related or durable goods. For instance, in 2011, 64% of the Chinese were willing to buy clothes from online stores than in physical stores. It has grown to 74%. In the same year, 47% were willing to purchase airline tickets online. They have increased to 69%. Again, hardcopy books were bought online by 50% of online users. As at now, the rates stand at 64%. 21% bought e-books online in 2011, and today, they have increased to 54%. Similar growth is seen in cosmetics, alcoholic drinks, and beverages. Nielsen also discovered that in china, internet users bought things online more than they browsed them. In short, the online buying rates exceed the browsing rates. For instance, 45% of Chinese internet users browse cosmetics online while 56% buy online. Similarly, 57% browse for clothing online while 74% buy their clothes online (China International Watch 2014, n.p.). Critical discussion The review of the collected data clearly shows that online shopping is on the rise in China and all other parts of the world. This is evident in that leading physical stores in China such as Suning Co. are reporting challenges offered by emerging e-stores. Some have even reduced the number of their retail stores such as Li Ning Co. Online stores are becoming a mandatory part of business and therefore requiring store owners and shoppers to embrace it. On the other hand, physical shopping does not seem to give way to online shopping as both modes of shopping appear to be held in a head-to-head tie. This is because factors such as computer illiteracy and the need to physically see things make physical shopping the preference of many shoppers. In short, in as much as online shopping is growing fast, it does not appear to threaten physical shopping the extent that it will one day cease to exist. The other outstanding point is that many Chinese are gradually taking to e-shopping because smartphones, which are on the increase in the country, also support online shopping. Finally, e-shopping has contributed to the increase in shoppers as the highest records in shopping history are about to be made, thanks to the availability of smartphones and the internet which enabled e-stores to exist and to function like physical stores. Based on the fact that the information collected is torn halfway between online and physical shopping, no definite answer is found as to which between the two modes of shopping is better. In this, it can be stated that the data collected is limited with regards to answering the query. The limitation in the available information therefore influences the need to have an evaluative study that will collect and analyse data in coming up with a conclusion to the same. As such, this study is relevant in that it seeks to provide answers regarding questions which prior researchers failed to address. The research question for the study will therefore be which shopping is better: online shopping or physical shopping? In answering this question, the study will not only justify that e-shopping is on the increase in China and the world over, but also provide a conclusive review as to which of the two are more preferred. Conclusions and Recommendations As the study shows, the introduction of the internet changed many dynamics of the world that we live in. All aspects of human life; social, economic, and educational have all been affected by the internet in some way. Businesses however, seem to have been more affected as the demand for electronic shops increases. It is evident that if a business entity does not have an online store; it is likely to fail in today’s challenging business environment. The statistics by physical stores in China such as Li Ning Co versus e-stores such as JingDong and Tianmao suggest that more shoppers are turning to electronic shopping. On the other hand, physical stores report that clients still require them, and they cannot therefore go fully online. In this dilemma, this study derives its relevance in that it will seek to reveal which one between the two types of shopping is better. Therefore, it is recommended that further investigation be conducted to determine the most used shipping methods between the two. In answering this query, the study will have attained its objective and relevance in that it will provide answers which have not yet been addressed by previous researchers regarding the matter. Bibliography Bagdoniene, L, &Zemblyte, J 2009,“Online shopping motivation factors and their effect on Luthuanian consumers.”Economics &Management , 1 (1):1-9. Bhatnagar, A, &Ghose, S 2004,“Segmenting consumers based on the benefits and risks of Internet shopping.”Business Research 57 (12):1352-1360. Business News Publishing 2013, Summary: Internet Riches- Scott Fox: The simple Money-Making Secrets of Online Millionaires. Primento. China Internet Watch 2014, “Chinese Consumers STRONG Intention for Online Purchase with Higher Buying rates Than Browsing.” Ciw,http://www.chinainternetwatch.com/8763/online-purchase-intentions/[19 March, 2015]. FloCruz, M 2015, “China’s Growing Online Shopping Markets Threaten Country’s Brick-And-Mortar Markets.”Ibtimes,http://www.ibtimes.com/chinas-growing-online-shopping-markets-threaten-countrys-brick-mortar-markets-1810358 [19 March, 2015]. Gong, W, Maddox, L, & Stump, R 2012, “Attitudes toward Online Shopping: A Comparison of Online Consumers in China and the US.” International Journal of E-Business Development 2 (1): 28-35. Griswold, A 2015, “Google’s First Physical Store is Very Google-y.” slate,http://www.slate.com/blogs/moneybox/2015/03/11/google_opens_first_physical_store_online_shopping_is_moving_offline.html [19 March, 2015]. Hsiao, M 2009, “Shopping mode choice: Physical store shopping versus-shopping.” Transportation Research 45: 86-95. Hsu, S, &Bayarsaikhan 2012, “Factors influencing on online shopping attitude and intention of Mongolian Consumers.”The Journal of International Management Studies 7(2): 167-177. Insights, B 2015, “Making the Most of China’s E-Commerce Boom.”Forbes, http://www.forbes.com/sites/baininsights/2015/01/21/making-the-most-of-chinas-e-commerce-boom/[19 March, 2015]. Jourdan, A 2014, “Alibaba reports record $9 billion Singles’ Day sales.” Reuters,http://www.reuters.com/article/2014/11/11/us-china-singles-day-idUSKCN0IV0BD20141111 [19 March, 2015]. Koiso-Kanttila, N 2005, "Time, attention, authenticity and consumer benefits of the Web."Business Horizons 48(1): 63. Lam, S 2011, “The Effects of Store environment on Shopping Behaviors: a Critical Review.” Advances in Consumer Research 28 (1): 190-197. Lantos, P 2015, consumer Behavior in Action: Real-life Applications for Marketing Managers. New York: Routledge. Monsuwe, T, Dellaert, B, &Ruyter, K 2004, “What drives consumers to shop online? A literature review.”International Journal of Service Industry Management 15 (1): 102-121. Olivier 2013, “The Best E-commerce Website in China is…” Marketingtochina, http://marketingtochina.com/best-e-commerce-website-china/ [19 March, 2015]. Read More