As I was travelling to work the other day, my attention was caught by a giant poster plastered along a wall at the Admiralty MTR station displaying lots of products with price tags and quick response (QR) codes. The poster was in fact a virtual store for Pricerite, a large-scale household goods retailer in Hong Kong. This virtual store allows passers-by to shop for displayed items where there is no actual store and without having to queue at a cashier – with the added bonus of delivery, so there is no need to lug around shopping bags on the crowded MTR at rush-hour! Customers can use their smartphones to scan the QR product code, pay for the items in their virtual cart, and have the items delivered to their doors within hours.

Pricerite Express Virtual Store at Admiralty Station, Hong Kong

But how is a virtual store different from your traditional online shopping experience? Yes, online shopping is really convenient; however, mobile devices limit the number of products that can be seen due to the screen size. On the other hand, QR codes in the virtual store enable a range of products to be displayed to catch consumer attention. Also, it’s easier to find items without keyword searching the online store, which can be a hit or miss game. Showing products on “shelves” in a virtual store also makes virtual store shopping more like browsing in a real shop.

While these types of virtual stores are still not that common in Hong Kong, they can be found in many other cities around the world like Seoul, Taiwan, Tokyo, Chicago and Toronto. (see this video for some virtual stores around the world). They are mainly located in high foot-traffic areas, such as subway stations, and can add shopping fun to bored commuters waiting for trains. Virtual stores are also more often used by supermarkets to provide shopping options for consumers to purchase without the hassle of lining up at the cashiers.

I believe that virtual stores could become the next big fad in Hong Kong, where retail rents can be very expensive. This form of retailing does not require a proper shop to operate yet it can still capture strong traffic flows. It particular, it allows high volume retailers of consumable goods to increase their presence, especially in high traffic areas, at the cost of advertising instead of the cost of real estate. And for landlords, virtual stores allow them to increase advertising revenue while providing a service to their customers. Furthermore, Hong Kong’s widespread use of smartphones also makes virtual stores feasible. According to the Office of the Government Chief Information Officer, Hong Kong’s smartphone penetration rate of 61% (as of 2011) is the second highest in the world. I believe that virtual stores have provided an opportunity for retailers and landlords to connect online and offline shopping for a seamless customer experience.

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