As of December 2024, Hong Kong's online-only retailers have shown remarkable resilience, logging their 16th consecutive month of growth. Sales reached HK$1.35 billion (approximately US$174 million) in October 2024, a significant increase from HK$777 million in September 2020 and HK$1.2 billion in September 2024. This surge is largely attributed to changing consumption patterns and the rapid adoption of digital technology among consumers [73cb351a].
In a broader context, a recent poll revealed that nine out of ten small and medium-sized enterprises (SMEs) in Hong Kong are optimistic about e-commerce's potential to boost their revenues. The World Bank projects that global business-to-consumer (B2C) e-commerce sales will reach US$6 trillion by the end of 2024, further supporting this optimism [a64bc1aa].
The survey indicates that e-commerce sales tools could increase revenue for these SMEs by an average of 14.6% over the next two years. Approximately 75% of Hong Kong SMEs are currently selling to mainland China, while 53% are targeting markets in Southeast Asia [a64bc1aa].
Despite the positive outlook for e-commerce, SMEs face significant challenges, including fierce market competition and complex customs procedures that can hinder their e-commerce efforts. To address these issues, the Export Credit Insurance Corporation (ECIC) signed a partnership in June 2024 with FundPark and Scor to provide insurance for trade loans specifically aimed at e-commerce SMEs, helping them secure necessary export financing [a64bc1aa].
In contrast, while Hong Kong's online retail sector thrives, small and medium-sized enterprises (SMEs) in mainland China are grappling with the complexities of global supply chains and technological advancements. These 'little giants' have surpassed government targets set in the 14th five-year plan but continue to struggle with converting research and patents into commercial success [7f263545].
The restructuring of supply chains has become increasingly localized and diversified, presenting both challenges and opportunities for SMEs in both Hong Kong and mainland China. Although the Chinese government has implemented measures to stimulate the economy, many SMEs report profit declines, reflecting a mixed overall economic environment [6623087c][9dfb5be2].
As these SMEs adapt to the evolving landscape, their ability to leverage e-commerce and navigate geopolitical barriers will be crucial for their long-term success and competitiveness in the global market [e1bd3f1d][7f263545].