The increased Internet usage and the increasing number of people who are getting online are unprecedented. The Internet has become a very important source of information when it comes to products and thus affects people’s decision when it comes to buying merchandise and has become a very important factor in the success of retail businesses. Take a look at the Philippines online shopping mall LazadaPH that has affected the local e-commerce industry and e-commerce as a whole. Most of the effects of Lazada Philippines on the local e-commerce economy can be deemed as positive ones. Let’s cite a few examples of the company’s positive impact to the local e-commerce economy.
On traditional businesses:
The coming of Lazada and other online shopping websites caused quite a stir on the traditional business front. It prompted traditional retail businesses to get in on the Internet caravan and have their online presence as they figured out that the bulk of the market has shifted to this parallel digital marketplace and that to stay relevant, profitable and basically just to survive, they need to extend their existence into the information superhighway. That effect might be interpreted by some as negative because it was like the online retail business is taking over the traditional ones and sucking up all the prospective customers. However, for progressive thinking, fast moving folks and other like-minded souls, it is a positive one as it instigated some sort of a revolution and enabled traditional business owners to embrace the technological flux and adapt rather than resist lest they simply just get wiped out and vanish into obscurity. The coming of online shopping websites like Lazada Philippines pretty much, to put it in a simpler phrase has kept traditional retail companies up on their toes which is a good thing as it enabled them to be more competitive and quality driven.
Positive effects on the end consumer:
Since the introduction of this online retail company has prompted offline businesses to widen their berth and extend it on the World Wide Web, the effect would be the increase of product and services options for the regular online shopper or consumer as the product offerings of traditional offline retail businesses further dilute the existing product options online. Furthermore the positive crowding of the online retail business sector could bring out the best in each retail company as they engage in a healthy competition to provide better quality products and premium services. The regular consumer will receive much better treatment from companies as they try and get him to consider doing business with them.
Positive effects on the mind set of small business entrepreneurs:
The success of online shopping businesses provides motivation to small entrepreneurs who are dreaming to make it big in e-commerce an online business. As they see the success of these online shopping websites, it gave them some sort of hope and morale boost to pursue the entrepreneurial route and make their dreams a reality. The online shopping websites serves as an example that as impossible as it may seem, online businesses can be sustainable in an emerging economy provided that they have the passion in pursuing it.