The B2C physical goods eCommerce market in Hong Kong is worth approximately $4.8 billion, growing at an annual growth rate (CAGR 2019-2023) of 7.9%.Hong Kong is a densely populated urban region with mobile phone and internet penetration rates above 80%. While eCommerce has been fundamental to how shoppers here discover products, its importance as a transaction channel has gained prominence only in recent years. The region has been heavy on physical retailing (95% of all retail sales still happen offline), particularly in the luxury category, but this is changing.In this blog post, we estimated the Total Addressable Market (TAM) of B2C eCommerce companies selling physical goods in Hong Kong and then profiled the TAM distribution by Product Categories, Online Sales and Shopping Carts.
Based on a combination of secondary research, validation, and analysis of PipeCandy's proprietary data, we estimated that, across Brands, Retailers, and eCommerce marketplaces, there are about 10,000-15,000 eCommerce companies in Hong Kong.When compared to other product categories, Electronics is the largest segment (26.8%) only marginally outpacing Fashion (26.1%), followed by Toys-Hobbies-DIY (25.2%)
We profiled a sample list of eCommerce companies (<- Build eCommerce lists with our DIY eCommerce insights platform) in Hong Kong, to analyze their distribution by Web Sales. The result mirrors the Global eCommerce market in general, with the long-tail companies or companies making <$1M in Web Sales forming the bulk of the market.
We found the following when we analyzed a list of eCommerce companies ( <- want a list of ecommerce companies in the USA?) based on their distribution by Shopping Carts.
OpenCart emerges as the popular choice, followed by Shopify, Magento, (<- Check this out if want to build a list of top Shopify and Magento stores from around the world in minutes) Woocommerce, and Shopline in that order. These five platforms collectively account for about 52% of all shopping cart technologies used in Hong Kong.
In Hong Kong, HKTV Mall is the largest online shopping platform. It offers Hong Kong consumers more than 180,000 different products including groceries, beauty, fashion, household and electronics items. Apart from this, there is a limited amount of other online platforms. Popular international sites include Zalora, Shopbop, Farfetch, etc. The absence of a large native online retail platform like JD or Tmall in China or Walmart in the US makes it difficult for consumers to compare products across multiple sellers.
eCommerce in Hong Kong is still in its early stages and there are plenty of untapped opportunities. The oft-cited argument for why it hasn’t taken off as it has in Mainland China is that the entire region has department stores that are located in convenient, accessible spots, making more sense for people to walk into a store and purchase than order online. However, as millennials increasingly continue to purchase online, major Retailers (<- Check this out to build a list of top retailers from around the world in minutes) and smaller vendors alike, are changing their mindset and getting more aggressive with their omnichannel eCommerce strategies. Download free market research reports like this. We value your feedback, let us know if there are any suggestions/corrections below. For customized market research report reach out to us at sales@pipecandy.com :)
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