Mainland China’s e-commerce market has held the title of the world’s largest online retail market for 11 consecutive years, with online retail sales exceeding RMB15 trillion last year, marking an 11% year-on-year increase.
To help Hong Kong businesses, particularly SMEs, capitalize on this expansive market, the Hong Kong Trade Development Council (HKTDC) organized the inaugural Hong Kong Shopping Festival on mainland e-commerce platforms in August.
The festival featured over 230 Hong Kong-based brands across six main categories: clothing and accessories, personal care and cosmetics, home goods, food, toys, and health and wellness products.
Online shoppers enjoyed discounts and real-time product demonstrations by popular influencers on major e-commerce platforms, including TikTok, Taobao, Tmall, and JD.com.
Many Hong Kong participants reported that the event helped them overcome barriers to entering the mainland market and provided valuable practical experience.
Enkang International, a Hong Kong-based gut health food company with its brand Chang Jian Le, primarily operates through online stores on Hong Kong’s e-commerce platforms. Although the company aimed to enter the mainland market, it was initially hesitant due to limited market understanding and promotional resources.
Lin Yihong, Co-Founder of Enkang International, shared that the Shopping Festival enabled the company to achieve extensive promotion at a low cost and master the essentials of live selling. He noted that influencers’ existing followers helped quickly build trust and establish a market presence through livestreaming product introductions.
Ambidexter®, a local children’s creative fashion brand, focuses on designing and producing safe products for babies and children. Since 2017, its products have been sold in HKTDC’s Design Gallery (DG) branch store and online stores on JD.com and Taobao. Despite operating in the mainland market for years, the brand faced challenges in inventory management, shipping, and handling finance and invoicing issues.
Ming Chen, Founder of Ambidexter®, stated that the Shopping Festival was invaluable in expanding the company’s consumer base and exploring new opportunities. Following the event, the company plans to engage in more livestreaming sales events and adapt its product designs to meet mainland demand, such as introducing modular designs for sustainability-minded consumers.
BHAWÁ, a Thai spa brand meaning “state of being,” successfully entered the Hong Kong market through offline sales. Its exclusive Hong Kong distributor aimed to tap into the vast mainland market but faced challenges with mainland customs procedures.
Marco Ng, the manager of BHAWÁ’s exclusive Hong Kong distributor, mentioned that Hong Kong serves as an ideal launchpad for foreign brands entering the mainland market due to its similar consumer profile.
The company first listed its products on DG’s JD.com store and then participated in the Shopping Festival to expand promotional channels. This experience has prepared them to set up online stores and conduct livestreaming on platforms like WeChat and Taobao.
Whether for new products or established brands, the Hong Kong Shopping Festival provided Hong Kong SMEs with the opportunity to experiment, adapt, and gain experience in tapping into the vast customer base of mainland e-commerce platforms.
