Document Type



The growth of the Internet has caused a dramatic business transformation. Traditional channels of distribution are being challenged by the Internet’s ability to offer products to distant consumers, with resulting increased competition in both product range and price. However to date, use of the Internet for retail purchases lags far behind more traditional channels of distribution, and while uptake has been much higher in the United States than in other countries, Internet retailing in both the US and in the Asia Pacific is marked more by high profile failures than by successes. This study analyses reasons for the limited success of online shopping, particularly in Australia and Hong Kong, examines whether there were warning signs that Internet shopping would not take off, and considers the implications for existing or potential e-tailers in the Asia-Pacific.