Live-streaming e-commerce offers new impetus to Hong Kong economy

With impressive sales in two live-streaming shows recently, analysts believe Hong Kong can learn from the successful e-commerce experience of the mainland to inject new impetus into an economy reeling from the COVID-19 fallout.

Nearly 1.16 million people tuned in to watch a sales promotion on Monday via live-streaming for Hong Kong-made products on popular Chinese video-sharing app Douyin, also known as TikTok, Monday evening, with some popular products sold out in merely a minute.

During another live-streaming sale on Friday night, 6,000 boxes of mooncakes were sold in 30 seconds and 20,000 cases of beauty masks were snapped up quickly. "Sold out" was the buzzword of the night.

"Such activities not only conform to the trend of the times but also meet the needs of Hong Kong's current economic and social development," Hu Zhanghong, CEO of Greater Bay Area Homeland Investments Limited, said when explaining why live-streaming emerged as a new hit in Hong Kong's e-commerce sector.

Facing the double whammy of social unrest since June 2019 and the COVID-19 pandemic, numerous small and medium-sized enterprises in Hong Kong struggled to keep afloat.

Live-streaming e-commerce will offer new growth momentum to the Hong Kong economy, in particular generate new job opportunities for young people and increase their incomes, Eric Ching, president of the Hong Kong Youth E-commerce Advancement Association, said.

As Hong Kong products gain great popularity from mainland consumers, not only Hong Kong businesses can weather out the hardships but the economic circulation between Hong Kong and the mainland will be strengthened, Lin Xiaohui, vice chairman of the Greater Bay Area Homeland Development Fund, said.

Looking ahead, Lin believes robust e-commerce will accelerate the transformation of traditional sectors from retail sales to logistics in Hong Kong.

With the enormous opportunities, experts suggested that Hong Kong should give full play to its advantages and learn from the mature e-commerce system of the mainland.

"The timing is perfect," Ching said, stressing the live-streaming e-commerce will bring mainland consumers even closer to Hong Kong products.

The association of Ching organized three training courses to help some 150 Hong Kong youth realize their dreams in the e-commerce sector over the past year.

"Hong Kong young people are sensitive to market changes, business-minded and expressive," said Chen Dong, deputy director of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region.

Chen called for concerted efforts from various sectors of Hong Kong to help youngsters ride on the wave of e-commerce development.