The accelerated growth of the eCommerce(or 網路開店 in Chinese) sector in Southeast Asia is probably a well-known fact for most online business enthusiasts. However, not many people seem to be aware of the eCommerce situation in East Asia, or more precisely in Taiwan & Hong Kong. These are, however, two regions closely related to China which should be on everyone’s radar.
If you sit down and look at the numbers you would notice that the e-commerce market in Taiwan & Hong Kong has seen rapid growth over the past few years.
But why is this?
Well as with most things economy-related, there are many factors that come into play here! Luckily, in this article, we will try to answer all of your questions on this matter.
When looking at any country’s eCommerce situation, the first thing you should take into account is the said country’s internet accessibility. So let’s take a look at how accessible the internet is in Taiwan & Hong Kong.
As of 2020, Taiwan is considered to be one of the most connected markets in all of Asia. According to a report done by TWNIC in 2018, over 90% of people aged 12 to 49 were internet users. And if you look at Taiwan’s internet penetration rate on Internet World Stats you would see that as of June 2020 the country is ranking quite high(at 92.6%). Also, looking at the Speedtest Global Index it’s clearly visible that as of June 2020, Taiwan ranks 20th in terms of average internet speed in the world and 6th in the Asia Pacific.
Opening up Internet World Stats, we can see that as of December 2019, Hong Kong’s internet penetration rate was 89.3%. As for the internet speed, well, you’d surprised to know that Hong Kong is ranked at number 2 for the fastest fixed broadband internet in the world with an average speed of 192.09 Mbps, being outranked only by Singapore.
The eCommerce market of a given country is dependant on a lot of factors. However, the main ones are:
- E-commerce penetration
- Smartphone adoption
- Investment in digital infrastructure
So let’s take a look at why both Taiwan and Hong Kong are doing so well in these regards.
Taiwan’s eCommerce market has grown exponentially over the past few years. Back in 2017, the country’s eCommerce market value hit US $42.69 billion. And with an average growth rate of 10-20%, Taiwan’s eCommerce market value doesn’t seem like it will be going down anytime soon. In fact, it’s predicted that in the next few years Taiwan’s online retail platforms will overtake physical retail stores in terms of sales.
This is, in turn, thanks to its e-commerce market possessing a well thought out infrastructure and the fact that the money flow and delivery service platforms make transactions incredibly simple. Aside from that Taiwan has also incorporated live social media promotions in their eCommerce platforms and also use artificial intelligence to link the eCommerce part of a business with the traditional retail outlet.