Concrete Analysis | Small retailers in Hong Kong being hit hardest as e-commerce gathers pace
Many small retailers are being forced to shut shop as they cannot compete against big companies with expensive, efficient and sophisticated online offerings
E-commerce is developing rapidly in Hong Kong as more retailers set up their online presence and shoppers change their consumption patterns and lifestyles – a trend that is likely to reshape the general retail sector.
Retailers and landlords have to be prepared for some challenging times ahead.
Major retail chains such as large supermarket chains and furniture distributors, even select luxury brands, have further strengthened their online shopping services, with offers of discounts and other freebies.
Their expanded cyberspace presences are mainly aimed at increasing sales without incurring any corresponding increase in manpower or shop rental costs.
Retailers are also encouraging customers to make online their main shopping preference, arguing its cheaper and more convenient to order their daily necessities and other items, which can now be delivered straight to their doorsteps.
Online shopping has struck a chord especially with the so called Generation X segment, who were born from 1965 to 1980, who enjoy little more than using their mobile devices to locate whatever shops they need to visit. Putting the convenience aspect and discount offers aside, the whole process of refund and return has also been vastly improved with the advent of e-commerce.