AdMart Ltd, the on-line shopping and free home delivery service
launched in Hong Kong in June 1999 by national media tycoon Jimmy
Lai Chee-ying, has announced that it will be shutting down and
laying off 334 employees, the largest dismissal by any dot.com this
year in Hong Kong.
AdMart had planned to change shoppers’ traditional retail habits
and bring them on-line. It provoked a price war among Hong Kong’s
supermarkets when it launched with discount prices and its free
home delivery service. However, the company failed to find
popularity with consumers and the cost of fulfilling small orders
proved too much.
AdMart’s products varied from groceries, furniture and
appliances to office supplies. The average order size is reported
to have been around HK$500 (£44) compared to a minimum order size
of HK$780 (£69) required for profit.
According to the South China Morning Post, Anton van Gorp, the
chief executive of adMart, said the company would now concentrate
on its core media business. He added, the migration we hoped for
did not occur. Significant buying on-line has not taken hold in
Hong Kong.”
