Malls lose popularity, e-shopping’s star shines
Güncelleme Tarihi:
by Hakkı Özdal - Referans
Oluşturulma Tarihi: Şubat 09, 2009 00:00
ISTANBUL - Shopping malls were a trend that started in the West and spread all over the globe like wildfire. However, during the mid-90s, shopping malls fell out of favor due to widening Internet utilization and rising concern over security and has paved the road to the birth of e-shopping
Much of so-called Western culture considers shopping malls to be much than just places to buy things.
Since the beginning of the 1980s, shopping malls have provided new spots for people to socialize. These shrines of consumerism over time became children’s playgrounds as well as entertainment centers for adults, with coffee shops and movie theaters.
During the mid-1990s, however, these places began to lose their popularity as the Internet spread like wildfire. By 1995, there was a vast variety of shopping Web sites, allowing people to buy anything they wanted without leaving the comfort of their home.
Concerns over safety
Another reason for the decline in popularity of malls was a concern for safety, which surfaced following the Sept. 11 attacks in the U.S. Fear rose to new levels and people did not want to be in closed or crowded locations.
Sting’s "Ten Summoners Tales" album, retailed at $12.48 on Aug. 11, 1994, marked the first virtual sale. This was a milestone toward the irrepressible period that was yet to come. As Internet usage widened across the world, e-shopping has become an almost indispensable part of people’s lives.
While global e-trade volume stood at $65 billion in 2001, by the end of 2007 that figure reached $233 billion. Although the rapid increase slowed down with the impact of the global economic crisis in 2008, e-trade volume is still expected to increase.
Turkey for the most part met e-trade in 1999, when Internet utilization spread. Many large- and medium-size companies began to set up direct sales channels. According to data from the Interbank Card Center, or BKM, e-trade volume used to stand at 1.4 million Turkish Liras in 2005, but increased to 9.1 million liras in 2008.
The global crisis, which has had a major impact on the real economy sector, has had a relatively small impact on e-trade. E-trade implemented through virtual point of sales in 2007 increased 105 percent compared to a year earlier, reaching 5.5 billion liras. Although the global economic crisis has bit into all markets, it has not caused any decline in e-trade. Amid the deepening crisis during the last quarter of 2008, e-trade in Turkey reached 9 billion liras.
Global turmoil, which has caused much distress in the real economy sector, had a weaker impact on e-trade. During the last quarter of 2008, when consumer behavior was greatly affected by the crisis, e-trade of 2 billion liras occurred in Turkey. That figure was higher than e-trade for all quarters of 2007 and the first quarter of 2008. If the crisis had not happened, however, e-trade in Turkey was expected to reach 4 billion liras during the last quarter of the year.
An obstacle e-trade has to overcome is the fear of identity theft. People are hesitant to share credit card information in the virtual environment and virtual cards, which provide a solution to this, are not in high demand. Virtual cards are a symbol of an online account and are attached to a credit card. The owner of a credit card can limit the amount accessible for virtual card purchases.
The government is also working on legislation to force companies operating in Turkey to have Web sites. All companies will have to establish Web sites within three months of the enactment of the draft into law. Companies who do not obey the new regulations will be fined and executives could be sentenced to up to six months jail time.
Since the beginning of the 1980s, shopping malls have provided new spots for people to socialize. These shrines of consumerism over time became children’s playgrounds as well as entertainment centers for adults, with coffee shops and movie theaters.
During the mid-1990s, however, these places began to lose their popularity as the Internet spread like wildfire. By 1995, there was a vast variety of shopping Web sites, allowing people to buy anything they wanted without leaving the comfort of their home.
Concerns over safety
Another reason for the decline in popularity of malls was a concern for safety, which surfaced following the Sept. 11 attacks in the U.S. Fear rose to new levels and people did not want to be in closed or crowded locations.
Sting’s "Ten Summoners Tales" album, retailed at $12.48 on Aug. 11, 1994, marked the first virtual sale. This was a milestone toward the irrepressible period that was yet to come. As Internet usage widened across the world, e-shopping has become an almost indispensable part of people’s lives.
While global e-trade volume stood at $65 billion in 2001, by the end of 2007 that figure reached $233 billion. Although the rapid increase slowed down with the impact of the global economic crisis in 2008, e-trade volume is still expected to increase.
Turkey for the most part met e-trade in 1999, when Internet utilization spread. Many large- and medium-size companies began to set up direct sales channels. According to data from the Interbank Card Center, or BKM, e-trade volume used to stand at 1.4 million Turkish Liras in 2005, but increased to 9.1 million liras in 2008.
The global crisis, which has had a major impact on the real economy sector, has had a relatively small impact on e-trade. E-trade implemented through virtual point of sales in 2007 increased 105 percent compared to a year earlier, reaching 5.5 billion liras. Although the global economic crisis has bit into all markets, it has not caused any decline in e-trade. Amid the deepening crisis during the last quarter of 2008, e-trade in Turkey reached 9 billion liras.
Global turmoil, which has caused much distress in the real economy sector, had a weaker impact on e-trade. During the last quarter of 2008, when consumer behavior was greatly affected by the crisis, e-trade of 2 billion liras occurred in Turkey. That figure was higher than e-trade for all quarters of 2007 and the first quarter of 2008. If the crisis had not happened, however, e-trade in Turkey was expected to reach 4 billion liras during the last quarter of the year.
An obstacle e-trade has to overcome is the fear of identity theft. People are hesitant to share credit card information in the virtual environment and virtual cards, which provide a solution to this, are not in high demand. Virtual cards are a symbol of an online account and are attached to a credit card. The owner of a credit card can limit the amount accessible for virtual card purchases.
The government is also working on legislation to force companies operating in Turkey to have Web sites. All companies will have to establish Web sites within three months of the enactment of the draft into law. Companies who do not obey the new regulations will be fined and executives could be sentenced to up to six months jail time.