Hong Kong’s online retail market has become too crowded for e-commerce giant Alibaba
Alibaba will shut down operations of Tmall Hong Kong on October 31, as the company sharpens its focus on cross-border e-commerce opportunities
That move comes as no surprise, according to analysts, because Hongkongers have plenty of online shopping platforms to choose from
Hong Kong’s e-commerce market has become too crowded for Alibaba Group Holding, according to analysts, as the Chinese internet retail giant moves to close its local Tmall platform at the end of October.
Tmall Hong Kong, which was set up last year as a dedicated shopping channel for merchants and consumers in the city on Taobao Marketplace, will shut down operations on October 31, according to a notice posted on the platform last Friday. It said August 21 will serve as the last day for customers to place orders, and that merchants must dispatch all orders before August 26.
That move comes as no surprise because the local market is already dominated by HKTVmall, which operates the city’s biggest and most widely used online shopping app, according to Carlton Lai, an analyst at Daiwa Capital Markets Hong Kong.
“It’s not possible to have multiple dominant [e-commerce] players in Hong Kong, considering the size of this market,” Lai said. “Tmall Hong Kong’s logistics efficiency, variety of products and number of merchants cannot compete with those of HKTVmall.”
