Hong Kong Goods Dominate Southeast Asia’s E-commerce Surge
Hong Kong’s presence in the burgeoning Southeast Asian e-commerce market is solidifying, with nearly 70% of online consumers in the region purchasing products sourced from the city within the past year. This statistic comes from a recent survey by the Hong Kong Trade Development Council (HKTDC), illuminating the evolving Southeast Asian consumer landscape and its opportunities for Hong Kong businesses.
The comprehensive survey, conducted between June and July 2024, polled over 1,800 online shoppers aged 18 to 60 across six key markets: Indonesia, Thailand, Malaysia, the Philippines, Vietnam, and Singapore. Results revealed strong demand for Hong Kong goods, with 69% of respondents reporting at least one purchase in the preceding 12 months. Thailand and Indonesia led in Hong Kong product adoption.
Consumer motivations varied regionally. Price sensitivity significantly drove purchases in Thailand and Indonesia, while Singaporean and Vietnamese consumers were attracted to the unique blend of Eastern and Western influences in Hong Kong products. Malaysian and Filipino shoppers perceived Hong Kong goods as more fashionable and trendsetting.
This diverse preference highlights the need for targeted marketing strategies, as emphasized by Irina Fan Yuen-yee, HKTDC Director of Research. She stressed understanding nuanced market demands and tailoring product offerings accordingly, urging businesses to move beyond generalized approaches. “Companies must understand what customers want and what they believe our products can offer to meet their needs and expectations,” she stated during the preliminary results presentation.
Consumer electronics dominated, representing 70% of Hong Kong-sourced purchases, encompassing telephones, televisions, and cameras. Fashion followed at 38%, with cosmetics and personal care items at 34%.
The survey also highlighted the dominance of regional e-commerce giants Shopee and Lazada, favored for their extensive product selections, promotions, and detailed product information. However, guaranteed authenticity often drove consumers to purchase directly from brand websites.
Significant spending differences emerged. Singaporean customers spent 68% more on Hong Kong sports goods than on other sources, while Indonesians spent 65% more on Hong Kong consumer electronics. This data offers valuable insights for optimizing pricing and marketing strategies.
This initiative marks the HKTDC’s first analysis of the Association of Southeast Asian Nations (ASEAN) e-commerce landscape. The primary aim is to empower Hong Kong’s small and medium-sized enterprises (SMEs) with the knowledge to navigate this market and develop effective business strategies.
This research is timely as Hong Kong diversifies its trade partnerships amid geopolitical uncertainties. The government actively promotes e-commerce among SMEs, with initiatives like the “BUD Fund” supporting branding, upgrades, and domestic sales. Expanding the “e-commerce Easy” program to all ten ASEAN member states further underscores this commitment.
ASEAN’s significance as a trading partner for Hong Kong is substantial. As Hong Kong’s second-largest merchandise trade partner after mainland China, ASEAN accounted for US$145 billion in trade in 2023—13% of Hong Kong’s total global trade. Hong Kong also plays a crucial role as an entrepôt for merchandise trade between ASEAN and mainland China, facilitating US$65.5 billion in re-export trade in 2023. The HKTDC’s survey provides a valuable roadmap for Hong Kong businesses to capitalize on the ASEAN e-commerce market’s potential and strengthen these economic ties.
