FACE TO FACE
October 2001 Issue

Face to Face with with Cindy Cheng Cindy Cheng, CEO of Dickson Cyber Concepts, was
recently reelected chairman of the Chamber's e-Committee. She is credited with launching Hong Kong's first 'Clicks & Bricks' project, and several e-related initiatives
within the Chamber. Bulletin Editor Malcolm Ainsworth caught up with Mrs Cheng and
asked her to share her insights into the committee's work, the latest developments in the
e-world, and how Dickson CyberConcepts project was developing. Following are extracts from
that interview.
The Bulletin: Many people now roll their eyes when
they hear 'e-commerce.' What is its current status in Hong Kong?
Cindy Cheng: Here. I want to show you something. I like this chart
(right). This came out at the end of 1999,
and even back then we anticipated this kind of curve. In early 2000, we were at the peak
of all the hype. Right now we are at 'publicized e-failures' because everyone thinks e-commerce equals IPOs. It's kind of sad,
but at the same time it is good because you do need this kind of shakeout. I think we will
experience more shakeouts, then the real businesses that are doing a lot of the back-end
work now will stabilize and really leverage the Internet.
Have you managed to accomplish all the goals
you set out for the e-Committee in your first year as its chairman?
We started the e-Committee last year because there were a lot of voices
from the SMEs saying that they didn't know what to do, and that they wanted help but there
was nowhere to go to. So last year, one of the e-Committee's major priorities was to get
them to understand and to get them to try and hook up the theory with their business. This
year we think we should be very practical and try to bring something to those people who
still have questions. So we are offering free one-hour e-consultation sessions.
What has been the response?
So far we've done a handful of sessions and the response has been very
good; everyone is going away very happy. The problems they bring are very simple, such as
how do I put my products on the Internet? Or, I have a group of sales people running
around in China, should we build an Intranet so we can share information and how do we do
that?
Will the programme be expanded?
We were only piloting the programme to e-Committee members over the last
two months. We will jointly announce it with the SME Committee to offer it to all members
soon. As long as there is a need we will try to help as many SMEs as possible.
We have also asked the Chamber to build a request-for-proposals board so
SMEs, whether they come to the one-hour session or not, can still put their requests on
the Internet. We will then invite service providers to constantly look at requests and
submit their proposals to the guy.
The Chamber is also spearheading the
e-Commerce Adoption Campaign, what does the programme hope to achieve?
The goals are to do some practical things that can directly benefit
members as well as the community. We are spearheading it but we also have 11 other
organizations or associations doing it, including the HKSAR Government.
Why are we doing it? Because Hong Kong never gets on any statistics when
people talk about e-commerce; it lags far behind other key Asian markets. This is very
alarming. This will likely have a long-term debilitating effect on Hong Kong's industries.
We hope the campaign -- for the near-term -- will promote the use of the Internet to do
transactions, which will ultimately increase Hong Kong's competitiveness.
How does Internet Week fit into this?
After a lot of brainstorming we decided to do
an Internet Week in December. Citizens are key to this programme and e-commerce in
general. We have to get the public involved -- like the ATM services before, once they get
used to using them it's hard to go back to the old way of doing things. But Internet Week
is not just one event. It is a week when businesses try to entice people to go online and
do transactions. The whole purpose is for people to go online, try it, and hopefully like
it enough that it will become a part of their daily lives.
There is the danger though that they could go
online and not like it. What happens then?
Of course there is always that danger, but I envision it is not going to
be a big-bang kind of success. I think it will reveal a lot of flaws, so this will be a
good chance to flush out a lot of problems. But if something goes wrong we fix it, learn
from it and move forward. It will also help identify what is Hong Kong's problem with the
Internet; why are we lagging behind? Is it a perception problem? Is it a practical
problem? What is the problem?
How is the Dickson Cyber Concepts
bricks-and-clicks project doing?
I think in terms of our unique concept of bricks and clicks, it is a great
concept except we got hit really badly with the economy and fall of e-commerce. Although
we anticipated the e-commerce fall, we didn't anticipate the market coming down.
How have you managed to cope with this double
blow?
It's been a
big challenge for us. We had to let go a lot of people. We had to take away a lot of
bottom line and basically had to stop most of our business development -- our plan of
moving forward has literally stopped. The most important thing for us now is to bring in
the front-end revenue and control costs. When we set up this company one and a half years
ago we said we would break even in three years. I am still confident that we can achieve
that, and that is what we are still aiming at.
Your location doesn't give you any walk-in traffic,
how are you trying to get customers to the mall?
Although we knew we wouldn't have natural traffic until 2003 and beyond,
because of the economic downturn we had to take decisive measures and we decided to do a
major restructuring in February. In May we started to implement another concept at the
physical site -- brand-name factory outlets selling off-season goods. We are doing quite
well there. We have Dickson ourselves as the anchor -- Polo, Dupont ... -- but we also
have Levi's, ABC Golf, Adidas, Megaware ... Its been very successful and it's interesting
to see people coming specifically for the outlets.
Do you think WAP or 3G services will give your
business -- or businesses in Hong Kong for that matter -- a boost?
I would say only when it gets more popular. Last year, when I first
started the company, I signed up a WAP service with one of the operators. But it wasn't
the right time. It all depends on whether these operators come up with really good
applications to help small businesses like myself and populate it among the citizens; then
it will be of value to me. As a matter of fact, during one of the outlet openings, one of
them leveraged WAP technology to send SMS [simple messaging service] and it generated a
lot of traffic. We had lines looping to get to that store. So it can work if it is done
right.
What do you think will be the next big
Internet wave to sweep Hong Kong?
We will not be talking about the Internet in a few years, it will just be
the part of lives. Also, pervasive computing. Devices that access the Internet like the
palm pilot and mobile have already merged. This will be further merged by the PC. |