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    Amid outbreak, shoppers flock to virtual stores

    ONLINE RETAILERS: The sector is getting a boost from the recent outbreak of SARS that is causing consumers to stay home and shop on the Web
    By Annabel Lue
    STAFF REPORTER, WITH BLOOMBERG
    Friday, Apr 25, 2003, Page 10

    A silver lining
    * PC Home reported yesterday that the company's online shopping sales more than doubled to NT$80 million this month.

    * Yahoo-Kimo's e-commerce sector also reported double-digit sales growth.

    * EBay Taiwan, an online marketplace allowing users to sell and buy products, has also seen a flurry of SARS listings, with respiratory masks accounting for 85 percent of all items listed in its household goods category.

    * Global Sources Ltd, which matches buyers and sellers worldwide through Web sites and publications, said that online inquiries have risen more than 30 percent in recent weeks.

    Yahoo-Kimo Taiwan (雅虎奇摩), PC Home online (網路家庭) and several companies are seeing Web-site traffic and online purchases rise as consumers choose to stay home to avoid public places over SARS (severe acute respiratory syndrome) fears.

    PC Home reported yesterday that the company's online shopping sales more than doubled to NT$80 million this month, compared to NT$35 million in the same period last year.

    "Masks, air purifiers and food that is said to enhance people's immune system have become hot items," said Sung Hwa-ming (宋驊明), a public relations officer at PC Home.

    These products used to be categorized as slow-selling items, he said.

    Yahoo-Kimo's e-commerce sector also reported double-digit sales growth as consumers turn to Web-based retailers.

    "In an effort to lower the risk of infection, consumers may prefer to shop online and use home delivery services," said Charlene Hung (洪小玲), marketing director at Yahoo-Kimo.

    EBay Taiwan, an online marketplace allowing users to sell and buy products, has also seen a flurry of SARS listings, with respiratory masks accounting for 85 percent of all items listed in its household goods category.

    Consumers seem to be staying online longer in recent weeks.

    Soft-World International Corp (智冠科技), the nation's top online games operator, has recently seen game players lengthen their time in cyberspace. The company cited two dates some two weeks apart to show the increase in online use.

    On March 31, some 130,000 players logged onto to the company's peer-group games during the 9pm rush hour. Since mid April the company said the number of users at the same time averages 162,000 players.

    "We are expecting to see a mild increase in sales, while now it's too early to predict the actual number," said company spokesman Gavin Lin (林盛隆).

    A government-funded market research center yesterday predicted home-based activities may profit from SARS fears.

    "Growth will be seen most in the game and e-commerce sectors as the threat of SARS may discourage some consumers from venturing out," the Market Intelligence Center (市場情報中心) said in a report yesterday.

    Home-centered amusements will be increasingly sought, with demand for games, videos and home KTV (karaoke television) growing as a result, the report said.

    Home movie rentals have also seen an uptick in recent weeks.

    Cine-Asia Entertainment International Co (亞藝影音), one of the nation's top video-rental chains with 106 stores in Taiwan, yesterday reported that sales were up 15 percent in mid-April compared to one month before.

    Global Sources Ltd, which matches buyers and sellers worldwide through Web sites and publications, said that online inquiries have risen more than 30 percent, Bloomberg News reported yesterday.

    Most of the manufacturers Global Sources represents are in China.

    "Buyers not wishing to travel are availing themselves of alternatives," Global Sources Chairman Merle Hinrichs said in the Bloomberg report. He said that the company expects profits to rise as a result.
    This story has been viewed 2284 times.

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