As an international business hub, Hong Kong has solidified itself as one of the most dynamic markets for eCommerce. The city’s digital ecosystem has developed rapidly with no sign of stopping. And the people of Hong Kong are increasingly adopting the digital lifestyle.
This article will give you a glance at the prosperity of the digital retail industry in Hong Kong. BBCIncorp will walk you through the key metrics of Hong Kong’s eCommerce, from consumers, revenue, to long-term growth. Let’s dive into it!
part 1:
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Major eCommerce merchant segments
The top five largest segments of eCommerce in Hong Kong according to Statista are fashion, consumer electronics, personal care, furniture & appliances, and food & beverage. Among these segments, fashion is the largest segment with a market volume of US$2,460 million in 2021. So if you are planning to kick-start your eCommerce business in Hong Kong, you should consider one of the segments above.
COVID-19 brings more opportunities for Hong Kong’s eCommerce
The Coronavirus has caused severe damage to Hong Kong’s economy in general. However, the pandemic has also created enormous room for eCommerce to grow as Hong Kong has recovered sharply from the pandemic.
As a result of COVID-19, consumers in Hong Kong have remarkably increased their use of digital platforms to shop for goods. In figures, 75% of shoppers admit they frequently buy goods online and 97% will continue shopping online (KPMG 2020). The numbers solidly prove that there’s rising demand for eCommerce in Hong Kong.
Shoppers are willing to splurge on goods online with brands that they trust. Furthermore, shoppers highly value a pleasant digital experience. That’s why they are likely to spend more on companies that provide a good online shopping experience. Therefore, besides the product’s quality, maintaining the consistent quality of digital platforms is crucial for brands engaging in eCommerce.
The future growth of eCommerce in Hong Kong
With escalating demand for online shopping, Hong Kong eCommerce is heading for sustainable long-term development. And there are supporting numbers for the future growth of the digital economy in Hong Kong.
According to Statista, the market size for eCommerce in Hong Kong is expected to almost double by 2025. In particular, the number of online shoppers is forecasted to hit more than 6.5 million. The market volume is likely to reach US$12,879 million and user penetration will hit 83.3% in the next five years.
The illustration below demonstrates the steady future growth of Hong Kong’s eCommerce market size through the previous years and in the next years.
Currently, Mainland China is where the jurisdiction generates the highest revenue in eCommerce. But in the next five years, ASEAN will be a not-to-miss market for eCommerce businesses based in Hong Kong. The region has a growing large population, high smartphone penetration, and non-stop rising consumer expenditure. With a total population of over 667 million, ASEAN is forecast to be the world’s fourth-largest economy by 2030 (PwC, 2021).
Furthermore, the jurisdiction has a strategic geographical location. It takes a less than 5-hour time flight from Hong Kong to any ASEAN nation. Therefore, South East Asia countries offer eCommerce companies in Hong Kong an incredible potential for future expansion.
Conclusion
In a nutshell, Hong Kong is one of the most ideal places to base your eCommerce company. The city is a dynamic international business hub with a robust digital infrastructure and exceptional logistic system. It also has an enormous pool of tech-savvy and high-demand consumers. Countless opportunities are there for you to grab. So don’t hesitate to start your eCommerce business in Hong Kong.
Source: https://bbcincorp.com/hk/articles/hong-kong-ecommerce-growth-and-opportunities
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