Wondering where to go to buy that new digital camera or the latest CD? How about your local service station. State-run Chinese Petroleum Corp (CPC,
To cope with post-WTO competition, the nation's top petroleum supplier plans to diversify its services into the business of online shopping, an executive of the company said yesterday.
"Starting from the third quarter of this year, customers can shop at our "Virtual Mall" Web site and pick up their purchases at any one of our over 1,600 service stations," said Chen Chao-hsun (
With Formosa Petrochemical Corp (台塑) having gobbled up 20 percent of the gas market from CPC, the oil giant hopes the online-shopping model will help them to compete.
"Therefore, we decide to upgrade our competitive edge by providing more value-added services," he said.
CPC will cooperate with about 40 vendors, offering consumer electronics, books, CDs, garments and accessories.
CPC's service stations, which often have a spacious layout, provides them sufficient storage options for merchandise.
7-Eleven has been offering similar services for three years, but has found it difficult to handle large-size products.
"We accept a wide rage of products ? as long as it weights less than 20kg and your vehicle can handle it," said Lee Kun-lin (李昆林), a manager in charge of CPC's online shopping venture.
The company says it will break even when online sales hit NT$1 billion, a goal that it hopes to reach within two years, Lee said.
Product suppliers who want to use the Virtual Mall will have to pay varying commission rates or an NT$120,000 annual fee, and that's where CPC will earn its profit, Lee said.
As the nation's major convenience store operator, with about 3,000 outlets, 7-Eleven has offered online shopping services for three years, reporting about NT$600 million in sales last year.
A market watcher said Chinese Petroleum has a long way to go before it can match 7-Eleven's level of success.
"7-Eleven's logistics system is well established, while CPC still has a lot to learn," said Jeff Liu (劉慰祖), an analyst at the Market Intelligence Center (市場情報中心).
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