Hong Kong E-commerce Trends and Statistics in 2021 - Osome

With more than 4.5 million online shoppers, the e-commerce penetration rate in Hong Kong is at 59.8% in 2018 and is expected to hit 72.6% in ... OsomeBlogHongKongHongKongEcommerceTrends&Statisticsin2021E-commerceisdevelopingrapidlyinHongKongasmoreretailerssetuptheironlinepresenceandshopperschangetheirconsumptionpatternsandlifestyles.Withmorethan4.5milliononlineshoppers,thee-commercepenetrationrateinHongKongisat59.8%in2018andisexpectedtohit72.6%in2022,ande-commercesalesinHongKonghavebeensteadilyincreasing.Withagrowingmarket,thereisnobettertimethannowtosetupyoure-commercecompany. Skipto: MarketSize HowCovid-19HasImpactedHongKong’sE-commerce MostPopularOnlineStoresinHongKong E-commerceKeyMetricsandStatisticsforHongKong GlobalComparison KeyTrends MarketSize ExpectedRevenue NumberofUsers US$7,598million 4.5million InHongKong,revenueinthee-commercemarketisprojectedtoreachUSD$7,598millionin2021accordingtoStatista.Revenueisexpectedtoshowanannualgrowthrate(CAGR2021-2025)of10.5%,resultinginaprojectedmarketvolumeofUSD$11,308millionby2025.HongKonge-commercemarket'slargestsegmentisFashionwithaprojectedmarketvolumeofUSD$2,337millionin2021. HowCovid-19HasImpactedHongKong’sE-commerce MostAffectedAreasofE-commerceBusinessbyCoronavirusOutbreakinHongKong2020 AccordingtoastudybyPaypal,approximately86%ofmidtolargee-commerceenterprises’hadproblemswithlogisticsandfulfillingorders.43%ofthemerchants’cashflowalsosufferedduetoCovid-19. Fromtheconsumerside,morethanhalfofHongKong’sonlineshoppersboughtmoregroceriesandpersonalhygieneproductsonlinebetweenJanuaryandJune2020.Lessmoneywasspentonnon-essentialproductsduringthistimeasmanyHongKongconsumerswerethreatenedbyjoblossesorlowerearnings. ThenewtoppurchasecriteriainHongKongarefoundtobevalueformoney,easeofshoppingexperienceandproductquality.Consumers’overallpositiveonlineshoppingexperiencesensurethattheywouldcontinuallyfrequentandmakemorepurchasesfrome-commercestorescomparedtobeforethestartofthecoronavirusoutbreak,KPMG’sstudyhighlighted. MostPopularOnlineStoresinHongKongThemostpopularonlinestoresandmarketplacesinHongKongareAlibaba’sTmall,WeChat,Taobao,Amazon,JD,AlibabaandeBay. E-commerceKeyMetricsandStatisticsforHongKongKeyMetricsHongKong’se-commercemarketisprojectedtowitnessanincreaseincompoundannualgrowthrate(CAGR)of9.9%from2019to2024,whereitwillbeworthaboutHKD$226billion(USD$29billion)in2024,GlobalData’sE-CommerceAnalyticsrevealed.E-commercetransactionswereexpectedtoregisterasharpincreaseof13.4%in2020,whereconsumersspendtheirdollarsonlineinsteadofinphysicalstores.HongKong’suserpenetrationwouldcover73.1%ofthepopulationin2021andisforecastedtoreach83.8%by2025.TherevenuegeneratedbyanaverageHongKonguser(ARPU)wouldbeUSD$1,375.89in2021,Statistaprojected.KeyStatisticsMostPopularGoodsPurchasedAccordingtoJPMorgan’s2019study,travel,healthandbeauty,andconsumerelectronicsarethetopthreee-commercecategoriesinHongKong.OnlinePaymentMethodsAquarterofalle-commercepaymentsinHongKong(HKD$0.9billionperyear)arecompletedbydigitalwallets,makingitthesecondmostpreferredpaymentoptioninHongKong.In2021,digitalwallettransactionswouldexceedthosedonebycards,asitisgrowingatacompoundannualgrowthrateof32%.Digitalwalletsaresettoeventuallyoutperformallothere-commercepaymentmethodsinHongKongbythisyear.HongKongese’mostpopulardigitalwalletsarePayPalandAliPay.Cross-borderPurchasesHongKongonlineconsumersarealsobuyingfromoverseas,withChinatoppingthelist.SingaporeandJapanarealsopopularoptions. GlobalComparison2019SalesValueofInternetRetailingasaPercentageofTotalBusinessReceipts/RetailSales In2019,HongKong’ssalesvalueofinternetretailingasapercentageoftotalretailsalesis5.7%,lessthanhalfoftheworldaverageof13.7%.Chinaleadsat34.1%,whiletheUK'spercentageofonlinesalesoutoftotalbusinessreceipts is21.8%,followedbySouthKoreaat21.6%. 3KeyTrendsHongKongE-commerceTrend1:MoreretailersgoonlineinHongKongHongKong’sphysicalstoreretailershaveincurredlossessincethepandemic,withYearonYearsalesdecreasingby44%inFebruary2020,accordingtoitsCensusandStatisticsDepartment’sdata.Thestoresneededanonlinepresencetosurvive.ANielsensurveyfoundthatforthefoodandbeveragesector46%ofHongKongconsumerspreferredeatingintheirhomesthandiningout.TheHongKongpeopleareincreasinglyoptingforfooddelivery,takeawaysandcookingathomeduringthepeakofCovid-19outbreakin2020,andthistrendwouldlikelycontinueinto2021.BusinessesinHongKongarewidelyadoptingtheonline-to-offlinemodel(O2O)tomeetonlinedemands.AccordingtoShopline,morethan50%ofShopline’se-commerceHongKongretailersownphysicalstores.Inthelongterm,20%ofitsmerchantsareconsideringfullyadoptingtheO2Omodel,supplementedbysettinguppop-upstores.Traditionalbrick-and-mortarretailersareenticedtoadopttheO2Omodelastheycouldsell24/7online,andnotbelimitedbystoreclosuresduringthenight.78.3%(almost4outof5)ofthemerchantsbelievedthatbeingoperationalroundtheclockwouldgivethemacompetitiveadvantage.HongKongE-commerceTrend2:ConsumersincreasinglyoptforbanktransfersanddigitalwalletswhenshoppingonlineBanktransfersanddigitalwalletsseeincreasedadoptionrateinHongKongat12percentcompoundedannualgrowthrateand11percentcompoundedannualgrowthraterespectively.Anestimated48percentofallonlinetransactionswouldbedonebybanktransfersanddigitalwalletsby2023.Atthesametime,HongKongshoppersaregrowingoutofprepaymethods(27percentdropinCAGR),debitcards(14percentdropinCAGR),andcashondelivery(13percentdropinCAGR).AccordingtoWorldpayMerchantSolutions,moreconsumersprefertoshopontheirmobilephonesandthatthistrendwillcontinuetogrow.Merchantswhostudytheirconsumers’behavioursandprovideanengagingonlineexperienceforthemwouldprofitintheire-commercebusinesses.HongKonge-commercemerchantsshouldofferthedigitalwalletsthattheirconsumersfrequentlyuse,asdigitalwalletstransactionswouldmakeupathirdofallpurchasesinHongKong’se-commercepurchasesoverthenextfiveyears.Readytosetupyoure-commercecompanyinHongKong?Focusonbuyingthebestproductstosellandgrowingyourbusinesswhilewetakecareofalltheadministrativeworkfromthenecessarydocumentstofile,totheaccountingworkfore-commercecompanies.Sharethispost:Tags:E-commerceTipstorunyourbusinesssmarter.Deliveredtoyoumonthly.EmailaddressSubscribeByclicking,youagreetoourTerms&Conditions,PrivacyandDataProtectionPolicyYoumightlikeitE-commerceAGuideonHowToPayYourSuppliersinMainlandChinafromHongKongAsabusinessownerinHongKong,it’scommontohavesuppliersinmainlandChina.Findoutmoreaboutthepaymentprocesses,methodsandnegotiatingtermssoyoucanfindwhatworksbestforyourbusiness.Mar7·9minreadE-commerceE-commerceTrendsin2022Asane-commercebusinessowner,it’simportanttokeepupwithever-evolvingtrends.Aswekickstartthethirdyearofapost-COVIDera,herearesomee-commercetrendsandhowyourbusinesscanremaincompetitiveFeb7·9minreadE-commerceTakeNoteofTheseE-commerceSalesDatesinHongKongAstheworldevolvesrapidly,onethingremainsconstant-annualholidaysandthesaleopportunitiestheypresent.Asabusinessowner,itiscrucialtokeeptrackoftheimportantdatessoyoucanretainacompetitiveedgeoveryourcompetitors,andlaunchmarketingcampaignsinatimelymanner. 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