Hong Kong to launch first e-commerce festival to boost online retail sales

CEO Insights Asia Team | Tuesday, July 23, 2024

Hong Kong is ready to organize its first e-commerce festivalwhich aims to increase online retail sales and promote local brands on e-commerce platforms across the continent. “E-commerce made easy” initiative, part of the government Fund dedicated to branding, modernization and domestic sales (BUD Fund)supports companies in expanding their market reach.

The Department of Trade and Industry announced that the initiative has a total funding ceiling of $1 million, with no caps on individual projects. Eligible expenses under the program include setting up online stores, advertising on third-party platforms, developing mobile apps and adding online payment options to websites. Funding will be provided on a match basis, and businesses will be eligible for an initial payment of up to 75 percent of the approved amount, provided the projects are completed within 24 months.

The festival will showcase more than 230 brands across categories including apparel, cosmetics, homeware, food and beverage, digital and health products. Financial Secretary Paul Chan Mo-po expressed optimism about the initiative, highlighting the significant growth potential in Hong Kong’s online retail market.

Chan noted that while the city’s online sales grew by almost 60 percent to 4.2 billion U.S. dollars (32.5 billion HK dollars) between 2020 and 2023, they accounted for only 9 percent of total retail sales last year. He stressed that the e-commerce festival could help Hong Kong small and medium-sized enterprises (SMEs) reach new customer segments and expand into the mainland market, thereby giving new impetus to their businesses and strengthening the reputation of Hong Kong brands.