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, and 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 robust statistical support further underscores Hong Kong eCommerce’s potential.
Firstly, Hong Kong is one of the most friendly international business environments. The Fraser Institute’s Economic Freedom of the World 2024 Annual Report ranks Hong Kong 1st, as the world’s freest economy among over 165 jurisdictions.
With its transparent regulation and attractive tax regime, it is no surprise that entrepreneurs keep choosing Hong Kong to build their eCommerce businesses.
Secondly, the retail sector, the base of eCommerce, is among the cores of Hong Kong’s economy. In 2023, the total retail sales value in Hong Kong hit a substantial figure, reaching approximately 406.65 billion Hong Kong dollars (reported by Statista).
Along with constant digital development, eCommerce is exponentially strengthened in Hong Kong.
One more highlight – in the 2023-2025 action plan for Hong Kong was that they are pushing the volume on live-streaming eCommerce.
Hong Kong isn’t just a logistics hub 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.
Check out in detail the
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, Statista recorded that over 90% of customers in Hong Kong use smartphones, and about 28% shop online every week. With an average annual spend of nearly HK$15,004, Hong Kong shoppers are the second-highest spenders in Asia-Pacific according to PwC. And the numbers show no sign of slowing down.
Update: According to Statista’s 2024 forecast, the expected continuous increase in the number of users in the eCommerce market in Hong Kong from 2024 to 2028, totaling 1.7 million users.
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$5,349 million by the end of 2025, resulting in an annual growth rate of 7.89%. In addition, Hong Kong’s eCommerce user penetration rate will be 57.6% in 2025. The average revenue per consumer is steadily surging over the years, reaching US$1,624, and is projected to keep increasing in the future.
As of 2025, digital payments are expected to generate US$40.85 billion in transaction value. By 2028, the total amount is projected to amount to US$56.53 billion due to an 8.46% CAGR from 2025-2028.
Major eCommerce merchant segments
The top five largest segments of eCommerce in Hong Kong according to Statista are fashion, consumer electronics, personal care, furniture & appliances, and food & beverage. Among these segments, fashion is expected to be the largest segment with a projected revenue of US$2,607 million in 2025.
The HKTDC Survey (2023) highlights specific product categories with significant growth potential in Hong Kong. The emphasis on fashion accessories, designer/branded clothing, fashion technology, and womenswear has suggested a consumer demand trend.
It seems like people are really into these things!
If you’re gearing up to launch your online business venture in Hong Kong, consider the insights shared above and kick-start your eCommerce business in Hong Kong.
COVID-19 brought more opportunities for Hong Kong’s eCommerce
The Coronavirus caused severe damage to Hong Kong’s economy in general. However, the pandemic has also created enormous room for eCommerce to grow as Hong Kong has recovered sharply from the pandemic.
As a result of COVID-19, consumers in Hong Kong have remarkably increased their use of digital platforms to shop for goods. In figures, 75% of shoppers admit they frequently buy goods online and 97% will continue shopping online (KPMG 2020). The numbers solidly prove that there’s rising demand for eCommerce in Hong Kong.
Shoppers are willing to splurge on goods online with brands that they trust. Furthermore, shoppers highly value a pleasant digital experience. That’s why they are likely to spend more on companies that provide a good online shopping experience. Therefore, besides the product’s quality, maintaining the consistent quality of digital platforms is crucial for brands engaging in eCommerce.
The future growth of eCommerce in Hong Kong
With escalating demand for online shopping, Hong Kong eCommerce is heading for sustainable long-term development. And there are supporting numbers for the future growth of the digital economy in Hong Kong.
According to Statista, the market size for eCommerce in Hong Kong is expected to almost double by 2025. In particular, the number of online shoppers is forecasted to hit more than 6.5 million. The market volume is likely to reach US$12,879 million and user penetration will hit 83.3% in the next five years.
Currently, Mainland China is where the jurisdiction generates the highest revenue in eCommerce. However, in the next five years, ASEAN will be a not-to-miss market for eCommerce businesses based in Hong Kong. The region has a growing population, high smartphone penetration, and rising consumer expenditure. With a total population of over 667 million, ASEAN is forecast to be the world’s fourth-largest economy by 2030 (PwC, 2021).
Hong Kong’s strategic geographical location is a major advantage. It takes less than a 5-hour time flight from Hong Kong to any ASEAN nation. eCommerce companies based here have a promising opportunity for future expansion in the dynamic markets of Southeast Asia.
Conclusion
In a nutshell, Hong Kong is one of the most ideal places to base your eCommerce company. The city is a dynamic international business hub with a robust digital infrastructure and exceptional logistic system. It also has an enormous pool of tech-savvy and high-demand consumers.
Countless opportunities are there for you to grab. So don’t hesitate to start your eCommerce business in Hong Kong. Contact BBCIncorp Team today for more support on setting up your Hong Kong business at service@bbcincorp.com.
Disclaimer: While BBCIncorp strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact BBCIncorp’s customer services for advice on your specific cases.
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