Hong Kong e-Commerce Statistics and Trends for 2022 - Statrys

The top three e-commerce categories in Hong Kong include travel, consumer electronics, and health and beauty. The most popular online stores in the country ... StatrysblogDoingBusinessHongKonge-CommerceStatisticsandTrendsfor2022PrevArticleHongKonge-CommerceStatisticsandTrendsfor2022Learnwhat'smovingHKcommerceonline.DjonLyDigitalMarketingExecutiveNextArticleContentsThee-commerceindustryinHongKongisexperiencingrapidgrowthasmoreretailersareswitchingtoonlineoperations.ThisincreasingrateisbecauseofsocialdistancingrulesandbusinessinterruptionfollowingtheCovid-19pandemicand,moreimportantly,becausee-commercebusinessesaremorecost-effectiveandprofitable.Thee-commercepenetrationrateinHongKongstoodat59.8%andisexpectedtoincreaseto72.6%in2022. HongKonge-CommerceMarketValueAccordingtoJ.PMorgan’s2019PaymentTrends-GlobalInsightsReport,theHongKongbusiness-to-consumere-commercemarketisworth$3.7billion.Thisfigureisatestamenttothecountriesadvancede-commerceinfrastructureandrapide-commercegrowthpotential.Thereportalsohighlightedthatwhileonly25%ofHongKong’scitizenscurrentlyshoponline,whichcontributestoonly11%ofthecountry’stotalretailspend,thecountryhashugeroomforgrowthastheonlineretailmarketiscurrentlyexpectedtogrowatarateof10.2%year.Leadinge-CommerceCategoriesThetopthreee-commercecategoriesinHongKongincludetravel,consumerelectronics,andhealthandbeauty.ThemostpopularonlinestoresinthecountryincludeTaobao,Amazon,Tmall,andJD,withonlineshoppingbeingpostpopularwithinthe30yearsandbelowagedemographic.Itwasreportedthatin2019,thee-commerceretailsalesvalueofbeautyproductsaccountedfor6.5%ofthetotalhealthandbeautyproductretailsalesinHongKong.However,thispercentageisexpectedtoincreasegiventherapidlyincreasinginternetpenetrationrateandchangeconsumerattitudes.Therefore,itisnowexpectedthatonlinehealthandbeautyretailwillgrowto11.8percentinHongKongby2024.Thereisastrongdemandforconsumerelectronicsagainduetothehighinternetpenetrationrate.Thecountryisgenerallymoretechnologicallyadvancedthanitscompetitorsinotherregions.IncreaseinOnlineShoppingOneofthemainreasonswhythereisahugedemandforonlineshoppinginHongKongisthecountry’shighinternetpenetrationwhichcurrentlystandsat89.4%.Anothermajoradvantageforthecountryisthatithastherightlogisticalinfrastructureavailabletomeetthishighdemandresultinginanincreaseindeliveryvolumes.HongKongcurrentlyranks12thintheWorldBank’sglobalrankingoflogisticscapabilitiesandquality.Thisinfrastructuralsupportallowsthecountrytomeettheincreasingonlinedemandandfacilitatesafurtherincreaseduetocontinuoustransportfacilityimprovements.Thisfurtherallowsbusinessestoexpand,meetcustomerexpectationsandrunsmoothly,whichcontinuestomakeonlineshoppinganattractiveandconvenientoptionforcustomers.Cross-BorderVSDomesticE-CommerceSpendExtremelyhighlevelsofcross-borderspendingalsocharacterizetheHongKonge-commercemarket.Thisisahugeadvantageforinternationalmerchantsascross-bordersalesarebecomingincreasinglyaccessibleandconvenientduetomobilebaking,internationale-commerceplatforms,andapp-basede-commercesites.Cross-borderspendingmakesup70%ofthecountry’stotale-commercemarket.ThisislargelyduetoHongKong’ssmalldomestice-commercemarkethavingtocompetewithinternationalmerchantswithlargee-commerceplatformssupportingthem.Additionally,thecountry’sadvancedlogisticalinfrastructuremakesshipping,transport,anddeliveryextremelyconvenientbothforthecustomerandthesupplier.PopularOnlinePaymentMethodsTheHongKonge-Commercemarketisthrivingduetothecountry’sexcellentandgrowingsmartphone,onlinebanking,andinternetpenetrationrate.Thistechnologicaladvancementhasresultedincardpayments,anddigitalwalletsarebecomingthemostpopularwaytoshoponlineinHongKong,acountrypreviouslyknownforhavingastrongcashculture. CardPaymentsCurrently,cardpaymentsareusedforalmosthalfofalle-commercepaymentsinHongKongandgenerateapproximately$18billioninsalesperyearCreditcardpayments,inparticular,arefarmorepopularthandebitcardpayments,withMastercard,Visa,andAmericanExpressbeingthemostrecognizedandusedbrandsAdditionally,totakeadvantageofthehighbankaccountpenetrationrate,thereisanincreaseincross-borderspendingasdomesticbanksofferattractivemulti-currencycardsthatgiveconsumersachoicetomakepaymentsinmanydifferentcurrencies.DigitalWallets Aftercardpayments,digitalwalletsarebecomingincreasinglypopularastheyarecurrentlyusedforaquarterofalle-commercetransactionsprocessedeveryyear.JPMorgan’sGlobalInsightReportpredictsthatthedemandanduseofdigitalwalletswillexceedthatofcardpayments.Theuseofdigitalwalletsisexpectedtoexperienceanannualgrowthrateof32%,makingdigitalwalletstheprimarye-commercepaymentmethodinHongKong.TheRiseofMobileCommerce Mobilecommerceisaformofe-commercethatallowscustomerstoaccessonlineshoppingplatformswithoutusinglaptopsordesktops.Mobilecommerceplatformsincludein-apppurchasing,virtualmarketplaceappslikeAmazon,mobilebanking,orusingdigitalwallets.Again,duetoHongKong’shighinternetpenetrationrateandsmartphoneuptake,mobilecommercehasbeenstronggrowth,whichhasbeenpredictedtogrowatanannualrateof13.2%by2023.Additionally,withthelaunchof5GinHongKong,theincreasedinternetspeedsfurthercontributetotheincreaseinmobilecommerceascustomersfinditamoreconvenientandeasyprocessofpurchasinggoodsandservices.ImprovedCustomerPaymentExperienceThecompetitivenatureofboththedomesticandglobale-commercemarkethasresultedinonlinemerchantsfocusingondevelopingnewbusinessmodelstoprovideanimprovedcustomerexperience.Newbusinessmodelsinclude‘buynowpaylaterservicessuchasSingapore-basedHoolah,whichlaunchedinHongKonginNovember2020.ServiceslikeHoolahallowonlinecustomerstopayfortheirpurchasesinthreeinterest-freeinstallments.ThisisbeneficialforthosewhoneedtomakeapurchasebutarestillwaitingfortheirpaydayItmakesonlineshoppingamoreattractiveoptionthanin-personshopping,wheresuchservicesareeitherlimitedornotavailableatall.Additionally,merchantswhowishtoholdacompetitiveedgeacceptchangingconsumerhabitsandtransformtheirbusinessesandservicedeliverytoadapttonewconsumerdemands.ImpactofCovid-19ThesocialdistancingrulesandclosureofphysicalstoresfollowingtheCovid-19pandemicresultedinamassiveincreaseinonlinepurchasesofessentialgoods.Notonlydide-Commercestoresincrease,butseveralbrandsandretailerswithonlyphysicalstoreswitchedtoonlinebusinessoperationstoincreasetheirsalesandmeetchangingcustomerdemands.TheVisaConsumerPaymentAttitudesStudyfoundthatnearly52%ofallshoppingcarriedoutinHongKongduringthepandemicwasonlinecomparedtojust40%beforethepandemicbegan.Thisincreaseinonlineshoppingisalsoexpectedtocontinueduetothepopularityofdigitalwallets,cardpayments,andalternativepaymentsolutionssuchasGooglePay,ApplePay,andPayPal. Innovativee-CommerceBusinessModelsAnewertrendwithinthee-CommercemarketinHongKongwhichisgraduallygainingtractionislivestreaming.Thisisanewbusinessmodelknownas‘livestreame-commercewherecustomerscandirectlyviewandbuyfromliveonlinevideostreamshostedbysocialmediainfluencersandcelebrities.Manyconsumerscannowmakepurchasesfromliveonlinevideostreamswherethehostingcelebritiesgivetheiropinionsandsuggestwhichproductstobuyonline.Moreover,socialmediahashadasignificantimpactonthee-commerceindustryasnowretailerscandirectlyreachouttocustomerstoadvertiseandmarkettheirproducts.AcaseinpointistheLandmarkshoppingmallinHongKongwhichlaunchedane-ChatshoppingserviceinMay2020.Throughthee-Chatshoppingservice,customerscandirectlycommunicatewithstorestafftoplaceanorderviachat.Notonlydoesthisallowconsumerstomakeabetter-informeddecisionregardingtheirpurchasethrougheasiercommunication,butitalsoreplicatesthelevelofinteractionsomeconsumersmightpreferspeakingtostorestafffacetofacewhenshoppingin-store.FinalWordsThereisnobettertimethannowtosetupane-commercebusinessinHongKong,giventherecenttrendsandstatisticsprovingthatthecountryhasathrivinge-commercemarket.Notonlyisthee-commercemarketdoingwellnow,butitispredictedtocontinuetogrow,whichcanensurebusinessesthatnowistherighttimetoestablishandinvestinane-commercestartup.FAQsIse-commercepopularinHongKong?E-commerceisapopularfieldinHongKongasit'scheaptoincorporateandopenyourbusinessesonline,particularlywithDropshippingcompanieswhowanttotakeadvantageofnothavingtheneedtousestoragespaceinHongKong.Whyaretheresomanye-commercecompaniesinHongKongCanIopenane-commercecompanyinHongKongOpenyourBusiness 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