Outlook for e-commerce in Hong Kong.pdf

Outlook for e-commerce in Hong Konggs1hk.org kpmg.com/cnA survey of CEO and Consumer PerspectivesSecond editionIn association withContentsP.2P.4P.6P.26P.44About the surveyExecutive SummaryE-commerce and customer-centricity becoming priorities for Hong Kong’s CEOsE-commerce popularity grows in Hong Kong, but still plenty of room in the shopping cartThe future state© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. GS1 Hong Kong is the local chapter of GS1®, a not-for-profit, standards orgnaisation. GS1 is a registered trademark of GS1 AISBL.© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. GS1 Hong Kong is the local chapter of GS1®, a not-for-profit, standards orgnaisation. GS1 is a registered trademark of GS1 AISBL.Case StudiesHKIA readying for e-commerce take-off 20Millennials: the key to the future 21Hong Kong’s flourishing O2O mall 22Putting customer experience first 23Corporates gearing up for e-commerce opportunities 24Hong Kong’s changing perception of e-commerce 40Embracing the digital age 41O2O critical to the future of Hong Kong retail 42Online brands popping up in Hong Kong 43PageCase StudiesPage1Outlook for e-commerce in Hong KongAbout the survey:KPMG China and GS1 Hong Kong commissioned YouGov to conduct two surveys. The first was a survey of 500 consumers in Hong Kong and 500 consumers in mainland China. Its aim was to understand their current and future shopping attitudes and habits, and to pinpoint, from their perspective the challenges and opportunities in Hong Kong and China for e-commerce and omnichannel businesses. The data was collected from September to October 2017. The second was a survey of 162 CEOs in Hong Kong to understand their views on the challenges and opportunities in Hong Kong in moving to e-commerce and omnichannel business models. It also examined the development of more customer-centric approaches, corporate growth strategies and the latest trends in leveraging digital technology. The data was collected from August to September 2017.© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. GS1 Hong Kong is the local chapter of GS1®, a not-for-profit, standards orgnaisation. GS1 is a registered trademark of GS1 AISBL.2Outlook for e-commerce in Hong Kong© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. GS1 Hong Kong is the local chapter of GS1®, a not-for-profit, standards orgnaisation. GS1 is a registered trademark of GS1 AISBL.3Outlook for e-commerce in Hong KongAs consumer and retail leaders, we are accustomed to change. We deal with changing shopping habits, channel shifts, economic and political uncertainty and disruptive new competitors on a daily basis. But all this change can be expensive unless a step change in productivity is achieved. For a business to survive and thrive in tomorrow’s market, a new retail model, enabled by the likes of automation and artificial intelligence (AI), is required. The future is coming fast, and only the innovative, nimble and open-minded will survive.In addition, start-ups have successfully disrupted the consumer goods industry due to their ability to better understand consumer trends. However, their success has spurred established players into action, and to focus on increasing the pace of change. The results from the surveys conducted for this report indicate that today’s consumers want instant gratification, as well as a narrative or story behind the products they buy that resonates with them. Consumers are also looking for authenticity – products that have been created by a couple of individuals whose names they know, and are produced in a certain place. Executive SummaryWe also see a large number of corporates trying to understand the changing consumer trends – shoppers are more unpredictable than ever, and China’s millennials, estimated at more than 400 million, have become the critical demographic for manufacturers, retailers and supply chains – and customer experience is at the core. To this end, improving the customer journey and creating a consistent brand experience across channels are highlighted as key objectives in this year’s survey findings. To achieve these objectives, many company executives interviewed for this report say that they are embracing data analytics tools and innovative technologies to better understand consumer preferences and enhance their product offering. Furthermore, brands are...