Hong Kong the shoppers' paradise gets an upgrade - by moving online
Simon Galpin says Hong Kong has the right attributes to be an 'e-tailing' centre for Asia and beyond, given the number of players it is attracting
Hong Kong, the gateway to the mainland Chinese market and a central business location in Asia, offers a perfect base for many overseas businesses looking to expand globally. A recent trend we have observed in those scaling up their businesses is the growing number of significant e-commerce players using Hong Kong as a base.
Well-known multinational e-commerce companies like Alibaba, Tencent and eBay have long used Hong Kong as a base for their various lines of business. More recently, Invest Hong Kong has seen growth in the number of smaller, entrepreneur-led e-commerce businesses it has helped set up here. Some of them have successfully launched in Hong Kong; others have fallen by the wayside. But all have learned valuable lessons about how to improve their business models for future success.
Put simply, e-commerce is about trading in products or services using digital and online networks, including the internet. Hong Kong's long retail tradition and competitive edge in information and communications technology make our city a natural e-commerce hub in this part of the world.
For many decades, Hong Kong has been a major trading entrepot, a strength that supports the booming retail sector we see in the city today. International brands have set up showcase shops here to attract the attention of local customers and the business and leisure visitors in Hong Kong, the latter exceeding 60 million last year.
Developments in information and communications technology are also encouraging many retailers to change their business models, using various e-commerce channels to enhance their sales and marketing efforts.
In Hong Kong, we have the benefits of a free port and open market, plus unfettered access to multiple social media channels, including Western platforms (Twitter, Facebook, LinkedIn, Flickr, Instagram, YouTube, etc) and mainland sites (Weibo, Youku, WeChat, etc). This allows retailers to reach all their customers and market their products and services all over the world from Hong Kong.