DiGi eyes 30pc growth in online store shopping [New Straits Time (Malaysia)]

(New Straits Time (Malaysia) Via Acquire Media NewsEdge) KUALA LUMPUR: DIGI.COM Bhd, the third largest mobile operator in the country, aims to grow its online business by 30 per cent this year, mainly driven by the increasing trend of online shopping among consumers.

Its online store, DiGi Store Online, allows customers to buy new mobile devices for their existing plans, sign up to a new plan and reload prepaid airtime, among others.

The portal also allows non-DiGi customers to buy devices by signing up to a plan - via a new DiGi number or porting from their existing number.

Products purchased online will be delivered to buyers within three working days and can be paid for via installment plans.

DiGi Store Online was first unveiled in April last year, but it was only late last year when a full range of services were available.

"Basically, we want to serve the customers the way they want to be treated. We found out that our customers want an online portal that provides them ease of transactions, flexibility, as well as seamless experience.

"DiGi Store Online is able to deliver it," said DiGi head of eBusiness Ramesh Rajandran in an interview with Business Times here recently.

So far, Ramesh has been encouraged with the progress of the DiGi Store Online - which registers some 15,000 transactions a month.

"About 4,500 transactions (out of the 15,000) are for purchasing of devices (with plans)," he said Ramesh, adding that about half of the 4,500 transactions are done by new customers.

Its data also revealed that about 80 per cent of DiGi Store Online users are between 18 and 35 years old.

DiGi.Com hopes to grow its online business by 30 per cent this year to close to 20,000 transactions monthly.

The online services will enable DiGi to enjoy better margins in the long run as it does not need to go through dealers to sell its prepaid or postpaid plans.

However, Ramesh believes the cannibalisation will be minimal and that the online store will be complimentary to its dealers network.

For example, when an interested buyer walks into a dealer store and requests for a particular smart phone that has no stock on hand, the dealer has the potential of "keeping" the customer as long as he or she is willing to wait for three days for the stock to arrive.

Once the customer has agreed to wait, the dealer can also go to the online store to purchase the phone at a preferential price.

"This is only possible when we have the system and platform to support our multi-channel strategy," he said.

Despite having an edge in the online store versus its rivals, Ramesh said the company will not rest on its laurels.

"In the online business, you can be the leader one day and be overtaken the very next day if you stop innovating. So, in order to maintain our leadership in this area, we have to be constantly on our toes," he added.

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