E-commerce sales in Hong Kong have been growing at a robust pace

Alternative payment solutions are the preferred payment method for e-commerce purchases in Hong Kong (China SAR), collectively accounting for a 43.3 per cent share in 2022, finds GlobalData’s 2022 Financial Services Consumer Survey.

GlobalData’s E-Commerce Analytics reveal that the e-commerce market in Hong Kong grew by 13.7 per cent in 2022 to reach HKD203.7 billion ($US26.1 billion), as an increasing number of consumers shift from offline to online purchases. The e-commerce market is expected to grow by 11.6 per cent to reach HKD227.4 billion ($US29.1 billion) in 2023.

Kartik Challa, Senior Banking and Payments Analyst at GlobalData, comments: “E-commerce sales in Hong Kong have been growing at a robust pace, supported by rising internet and smartphone penetration, robust online payment infrastructure, and with increasing consumer confidence in online transactions. The pandemic accelerated this shift in consumer preference from brick-and-mortar to online channels. Furthermore, online shopping festivals such as Black Friday, Cyber Monday, and Singles’ Day have also contributed to the overall growth of e-commerce in Hong Kong.”

According to GlobalData’s 2022 Financial Services Consumer Survey, over 90 per cent of consumers in Hong Kong reported having shopped online in the past six months, while only 6 per cent of respondents indicated that they had never shopped online.

GlobalData’s survey also revealed that among various tools used for e-commerce purchases, alternative payments are the most preferred in many Asian markets, mainly owing to factors such as simplicity, speed, and convenience of using them.

Alternative payment solutions Alipay and WeChat Pay are increasingly used for online purchases, driven by the popularity of Chinese e-commerce sites among Hong Kong consumers. International payment solutions such as Apple Pay, PayPal, and Google Pay are also present in the market.

Challa adds: “Alternative payment solutions are followed by payment cards, which account for 37.3 per cent of the e-commerce transaction value in 2022. This can be attributed to convenience, pricing benefits such as cashback, discounts, and reward points, as well as instalment payment options available with these cards.”

The share of cash on delivery is on the decline and accounts for a mere 5 per cent of e-commerce purchases, due to the growing popularity of electronic payments.

Challa concludes: “Hong Kong will continue to witness high growth in e-commerce sales, which are forecast to grow at a compound annual growth rate (CAGR) of 10.2 per cent between 2022 and 2026 to reach HKD300.4 billion ($US38.4 billion) in 2026. Alternative payment solutions are expected to continue their growth and dominate e-commerce payments in Hong Kong”.

Tags: e-commerceHong Kong