Hong Kong Ecommerce Table of Contents
Hong Kong has slowly embraced e-commerce, but in this large market, there is excellent digital technology. E-commerce in Hong Kong is a comparatively poor proportion of the overall retail is just 7%. Hong Kong is a compact urban area that, to date has provided physical retail services by excellent transport infrastructure.
Moreover, a considerable proportion of the population still has their first online transaction relative to other markets listed in our survey. Four people out of 10 do not use e-commerce with a population of 7.5 million. However, the uptake of e-commerce is increasing. This is motivated by increasing mobile use and the use of social media platforms by younger generations.
Taobao and Tmall marketplaces and are Hong Kong's most successful e-commerce platforms. The main marketing activities to know are the 11th Singles' Day, the June-August 'Summer Fun,' and the January/February Chinese New Year.
In 2019 and 2020 Hong Kong saw huge growth. Development, from a compound annual rate of growth (CAGR) of 7.8 percent is expected to continue into 2023. The annual average online expenditure amounts to HKD7,248. This is less than China's mainland (RMB9,763/US$1,463). About half of the online shoppers said they began buying more food and hygiene items online in the first half of 2020 after the COVID-19 pandemic.
Having said that, after the COVID-19 pandemic, Hong Kong worked swiftly to introduce tracks and tests, Infections were therefore low and civilians were less limited. The pandemic does not affect e-commerce as long as it does in other countries.
91% of the population in Hong Kong has a very high penetration of the internet. That ensures that the vast majority of residents of Hong Kong are able to contact foreign traders.
The uptake of smartphones is also high, at 76%. This has resulted in a positive forecast that mobile businesses will expand at an annual compound rate of 13.2 to 2023,% which is estimated at $3.5 billion. 5G started in Hong Kong and is scheduled in the second half of 2020 to roll out throughout the city. Increased Internet speeds on the go could help more mobile trade.
Mobile trading in Hong Kong is below mainland China, which is the world's highest-volume (60%). However, 47% of purchases conducted via cell phones make up a considerable part of e-commerce and all mobile and desktop websites should be offered by traders. Mobiles (49%), desktops (33%), and tablets (19%)are the most common device for accessing e-commerce.
In order to complete purchases, apps are chosen over browsers. In Hong Kong, domestic retailers have traditionally offered e-commerce apps slower than their counterparts in mainland China and foreign retailers will build on it with the creation of simple applications.
Cards are the most widely used e-commerce payment system for Hong Kong, are used by 40 percent of all purchases. 18 high-use credit cards with 2.62 credit cards per capita compare to 0.82 debit cards.
The ubiquity of Octopus, which was initially conceived for bus purchases but is now available online, would support card use, which is also a local card-based payment system. The card's penetration is almost total: 95% of the population between the age of 16 to 65 years old is card-users. The second common payment form is digital wallets, which account for 36% of online purchases. The approach is being used more and more. Alipay and UnionPay of China are the main brands that allow card integration.
Cross-border expenditure is a major component of e-commerce in Hong Kong, accounting for 70% of the entire sector of e-commerce. 75% of online shoppers have now shopped across borders because of the limited domestic e-commerce industry in Hong Kong. The most famous cross-border destinations are China, Singapore, and Japan with a wide selection of products and relative proximity.
Hong Kong will help to grow cross-border trade volumes. It ranks 12th in global rankings of logistics and efficiency at the World Bank and is one of the world's top rankings in our survey.
In order to reform their online banking rules, the Hong Kong Monetary Authority has adopted closely the revised European Payment Services Directive. The Authority started in January 2019 and is launching phases of their open application programming interface framework.
The cost of supply could be greater than in other economies. For many customers living or working outside of the home, home delivery sometimes fails for the first time, which increases prices.
There are no requirements for a local entity.
There are no foreign exchange controls.
Fees differ for acceptance. For instance, PayPalTM and UnionPay have higher charges than Alipay (0.55 percent of transaction value).
Scroll down to read our indepth Ecommerce Platforms guide. What you should know, Ecommerce Platforms features, price plans and support. Pros and Cons of Ecommerce Platforms as a ecommerce, everything is explained below.
Shopify is a software company that specialises in ecommerce software for small to enterprise level businesses.
Shopify is listed as the best ecommerce software related to Ecommerce Platforms. Shopify was founded in 2006 in Ottawa, Canada and currently has over 6,124 employees registered on Linkedin.