As an international business hub, Hong Kong has solidified itself as one of the most dynamic markets for eCommerce. The city’s digital ecosystem has developed rapidly with no sign of stopping. And the people of Hong Kong are increasingly adopting the digital lifestyle.
This article will give you a glance at the prosperity of the digital retail industry in Hong Kong. BBCIncorp will walk you through the key metrics of Hong Kong’s eCommerce, from consumers, revenue, to long-term growth. Let’s dive into it!
Hong Kong eCommerce is vastly booming
There is no doubt that Hong Kong is a prime market for eCommerce with a solid economic foundation. The city’s eCommerce industry is surging thanks to various reasons.
Firstly, Hong Kong is one of the most friendly international business environments. PwC reported that Hong Kong was ranked the world’s freest economy in 2021. With its transparent regulation and attractive tax regime, it is no surprise that entrepreneurs keep choosing Hong Kong to build their eCommerce business.
Secondly, the retail sector, the base of eCommerce, is among the cores of Hong Kong’s economy. Hong Kong Census and Statistics Department reported that retail generated a fifth of the city’s GDP in 2020. Along with constant digital development, eCommerce is exponentially strengthened in Hong Kong.
Furthermore, Hong Kong is the regional logistic center of Asia. It has a quick and efficient world-class logistic system. The city’s excellent logistical quality makes it a wonderful destination for eCommerce businesses to grow.
Fascinating statistics about Hong Kong eCommerce consumers
Hong Kong is an incredible retail market full of digital-savvy shoppers.
Numbers don’t lie. In particular, KPMG recorded that over 97% of customers in Hong Kong use smartphones, and about 40% shop online every week. With an average annual spend of nearly HK$15,004, Hong Kong shoppers are the second-highest spender in Asia-Pacific according to PwC. And the numbers show no sign of slowing down.
Key metrics of eCommerce revenue in Hong Kong
eCommerce is generating immense revenue for Hong Kong’s economy.
According to the latest report of Statista:
The total revenue from eCommerce will reach US$8,658 million by the end of 2021, resulting in an annual growth rate of 10.44%.
The market volume is also expected to be US$1,542,551 million in 2021.
The chart below illustrates the estimated annual revenue of Hong Kong eCommerce through different segments from 2017 to 2025.
Also, Statista predicted the average revenue per user will amount to US$1,568. In addition, Hong Kong’s eCommerce user penetration will be 73.1% in 2021. As the line chart shows, the average revenue per consumer is steadily surging over the years and is projected to keep increasing in the future.
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