Electronic Commerce in Hong Kong

Electronic Commerce in Hong Kong Reference Case: RoomServiceNet Background of Company  Market penetration and reach: with the global reach of the

Internet that operates round-the-clock, RSN has the vision of

 The RoomServiceNet (RSN) – previously known as K.P.H. extending its services to cover other places in Hong Kong.

Food Delivery & Restaurant, located at Tai Po, was  Reducing operation cost: RSN's alliance restaurants enjoy the

established in 1992 to provide Chinese cuisine and delivery advantage of sharing the investment on the system setup and

service to customers through telephone. In 1998, RSN started the ongoing operation cost of the delivery team. RSN acts as

using Internet to extend its business by providing on-line an agent between restaurants and their clients, resulting in a

information to its customers on the web and accepting on-line "triple-win" scenario.

orders.

 Most of the RSN's customers are from the Tai Po area. In

order to expand its business, RSN has formed an alliance with Challenges Encountered

nearby restaurants of different styles to enrich the choice of

food for its customers.  By running its own web server, RSN can update its website as

 At present, RSN is working in alliance with a total of seven frequent as the business requires, especially with the joining

restaurants. RSN is centrally responsible for the delivery of new restaurants and offering of new promotional packages

service operation, marketing and promotion. by its partners. It is much more flexible and efficient to update

its website directly than through an Internet Service Provider

(ISP). In addition, many ISPs have a storage size limitation on

Electronic Commerce (E-commerce) Activities each hosting website. As hardware and software prices

becomes lower, it becomes more cost effective to own a web

 RSN launched its RoomServiceNet.com website in Hong server in the long run. More importantly, RSN considers data

Kong in August 1998. The website was designed and in the server as the most important asset of its company. There

maintained by RSN and was hosted on its own webserver. is no guarantee for web-hosting companies to take good care

RSN's IT consultant performed the programming part. of its data from illegal access, loss, or damage.

 The website carries more than ten categories of food in  Using credit cards for online purchase through SET or SSL

different styles. There are wide varieties of food and drinks system is becoming more and more popular. However, in

available for its customers' choice. Hong Kong, people are very concerned about the Internet

 When the customers visit the website, they can choose their security and they are hesitant about exposing their credit card

favourite food category and browse through lists of food and information on the Internet. Besides, the cost of setting up the

drink items. The operation flow is as follows: SET and SSL systems is relatively high for small enterprises.

 Customer has to register delivery information on the Due to the nature of its business that requires physical contact

website (for 1st time customer only); with the customers, RSN can collect cash upon delivery of

 Customer can then choose food and drink items from one food or drinks. Nevertheless, RSN will consider providing

or more restaurant menu(s) on the website; online payment as one of its service options in the future when

 Customer can preview the ordered items before people show more confidence with this mode of payment.

submitting the order form;

 Order form will be printed out automatically at the RSN's

operation centre; Outlook  RSN sends order to the relevant restaurant through

telephone or fax;  RSN is at the initial stage of its operations. In order to become

 RSN's delivery agent goes to the relevant restaurant to a more successful enterprise, RSN will continue to refine its

pick up the ordered food; and organization strategy and operation management. RSN will

 Delivery agent delivers the food to the customer and extend its service to a few other districts in the near future and

collects payment in cash. it expects to bring its service to cover the entire Hong Kong

 RSN virtually carries no stock. The food and drinks are territory within the next 2 years. A more long-term goal is to

provided by its alliance restaurants. expand its business operations outside Hong Kong.

Benefit of E-commerce Hints and Tips

 Lower investment cost on advertisement and promotion:  Registration of Website Domain Name in Search Engines: It is

Internet makes it easier for RSN to update its restaurant’s important to get known in the cyber world in order to get in

information such as menu, price, sales and special promotion touch with more customers. Therefore, RSN registered its

attractions. In the past, it was impossible to release all such domain name in several famous search engines in order to

information to the customers without spending a considerable promote the website.

sum of money. Internet becomes the most cost-effective and  Draw attention from the Media: As RSN's operation is a

powerful tool for RSN to promote its products and services. newly developed concept, getting exposure to media, such as

 Effective order handling: Internet operation allows many magazine interview can help to promote its image. Increasing

customers to make orders at the same time. It requires much its exposure will attract more restaurants to join its alliance

less time and human effort to take orders than using a and eventually more customers to use its services.

telephone, especially during the peak occasions when there

are a lot of orders.