While the growth of e-commerce in Hong Kong lags behind global trends, there are still untapped opportunities for brands to successfully sell their products online, particularly for FMCG. To forge opportunities for FMCG online sales, companies need to use omni-channel strategies to meet consumer expectations for personalised and convenient shopping experiences.
Online retail sales are growing globally and in Asia Pacific
FMCG e-commerce fast-growing in Asia Pacific. Among the countries in this region, South Korea and China are ahead of the curve globally, with 18% and 16% respectively of all FMCG sold online. This shift in buying behaviour is driven by technology and rising role of social media in the e-commerce space. Regardless of where in the world you are, the trend is clear: the large growth in online sales is rapidly changing consumer purchasing patterns.
At the same time, Hong Kong e-commerce is lagging in growth
Hong Kong businesses have limited opportunities for online sales when compared to neighbouring places such as China or Taiwan.
Source: Nielsen 2018
With a high concentration of easily accessible shopping malls and reliable public transportation, it is not surprising that shoppers in Hong Kong have shown reluctant to buy online. Consumers still want to see and touch the products before buying. Moreover, consumers have shown concerns towards unfavourable refund policies and question the freshness of perishable goods. Both mainland Chinese and Hong Kong consumers are wary of unsatisfactory return policies as well as the security of online payments. In many ways, online retailers in Hong Kong face the same challenges as retailers in China.
While these concerns pose obstacles for online retailers, Hong Kong consumers’ large appetite and excitement towards new technologies means that shoppers are increasingly seeking convenient and personalised experiences online. In particular, the online shopping trend is increasing for home and lifestyle accessories, sporting goods, and beauty and wellness.
Capturing Opportunities for FMCG e-commerce in Hong Kong
Through tackling the hesitations Hong Kong consumers have when buying FMCG online, brands can tap new opportunities to driving their online sales. Aside from providing incentives including free delivery or discounts using a subscription model, for example, businesses should also focus on providing a consistent branded experience across all their online and offline channels.
This omni-channel approach enables brands to put consumers at the centre and provide consistent interactions throughout the customer’s path to purchase seamlessly across retail channels. This way, brands can deploy the best omni-channel strategy, based on infrastructure that allows them to access customer data at every touchpoint.
“85% of shoppers who start their purchase journey on one device finish their purchase on another device.”
A customer-centric omni-channel strategy fosters better customer relationships, regardless of where the consumer interacts with the brand. To cite an example, retarget marketing across different channels can offer a better check-out experience to customers, with personalised content and offers based on past interactions with that brand.
By adopting an omni-channel strategy, brands can drive online retail sales.
Unlike multi-channel strategies, omni-channel strategies put the customer at the centre of every interaction. If a brand uses a multi-channel approach, it may successfully use each channel such as email, social media, and their website but in a siloed approach. Such strategies tend to be weak as they result in siloed marketing campaigns and a mismatch between marketing and customer-service.
On the other hand, omni-channel strategies set up the ideal environment for meaningful relationship building with customers. Using the right tools and CRM system can unveil rich opportunities for data collection and analysis. This way, businesses can push out relevant marketing messages that provide better ROI and grow customer retention rates as well as purchase frequency.
The future of Hong Kong e-commerce for FMCG
Over 30% of online shoppers in Hong Kong state they seek more interactions with their favourite brands through social media channels and other platforms. Moreover, up to half of all Hong Kong consumers say they intend to increase the number of purchases they make with their phone. This means that businesses looking to sell FMCG online should deploy engaging online strategies to deepen engagement and offer more opportunities for meaningful interactions.
This increasing demand for engaging experiences and points of sale is a valuable opportunity for Hong Kong brands who are committed to creating and maintaining meaningful relationships with consumers.
Now, consumers increasingly expect faster and better after-service care. From website chat agents to Facebook messenger, brands can increase their customer retention by providing exceptional customer service by leveraging technology.
Three Key Takeaways
- When compared to neighbouring places such as China, Japan, or South Korea, Hong Kong consumers are slower to adopt online shopping
- At the same time, online sales for sports goods, beauty, wellness, and lifestyle are increasing
- Hong Kong businesses that are looking to grow online sales should adopt an omni-channel strategy and provide a personalised and convenient shopping experience
