E-shopping heats up competition over CNMI market

The emergence of Internet is giving businesses that have physical facilities in the Northern Marianas a run for their own money as the new technology re-shapes the way people buy the things they need and the things they want, according to a business expert.

Northern Marianas College business instructor D. Rik Villegas said the Internet has positioned itself to be an alternative venue for the purchase of items, especially those that are not available locally.

However, the convenience of not going out and clicking a button in the computer monitor to buy an item, which is available in the local market, is proving to be a fierce competitor by establishments operating on the islands.

This convenience prompts customers to buy from the Internet even items that can be found at practically the same, or slightly higher, price in the local market.

“Internet has changed the way people buy. With this new technology, it is easier to get practically everything and have it shipped here. Electronic commerce has emerged to be a strong competitor of our businesses here,” said Mr. Villegas in an interview.

Digital shopping, aggravated by the proliferation of dozens of business catalogs in the Northern Marianas that offer tempting packages like waived or minimal shipping costs, reduces the number of potential customers local establishments may lure.

One of the most important values local businesses can work for is the establishment of rapport with their customers and clients, in order to entice them to return and buy more frequently from the store.

“Most people want to have an interaction while buying an item. Unless it is a low commodity item, which most people would rather buy from the Internet, customers are more likely to buy from the people they trust,” Mr. Villegas pointed out.

He emphasized this trust may only be earned from the customers by the businesses after establishing a good relations with them through better service and the right product.

“One they have established good relations with the customers, they will earn their trust and they’ll find them coming back again and again. Customer relations really is a vital part of any business,” he added.

According to Mr. Villegas, the principles of marketing does not limit itself to getting people buy but also encouraging them to come back as often as possible and make more purchases.

Business owners and managers should now realize the value of the local market when the islands are faced with dwindling visitor figures and those who come in are practically faced with weaker spending power due to economic uncertainties in their home countries.

“I think people didn’t realize how important the local market is because there were too many tourists coming in. In the economy like this of the CNMI, it is vita; to maintain excellent customer relations,” he said.

Nevertheless, Mr. Villegas stressed there have been major changes and improvements in the way businesses here deal with local customers.
“There are only three ways to grow a business, one is to bring new customers, two is make those customers buy more, and third is to get them to come back as often as possible.”

He attributed this to the expanding knowledge on marketing and the contracting economy which reminds establishments that customers who are not treated right have other options to turn to.