Mobile shopping trend on the rise

Mobile shopping is far more than a fad nowadays in Hong Kong, with the total value of transactions more than tripling to HK$6.4 billion ($825.42 million) in the 12 months to July from the previous period, according to a survey conducted by The Nielsen Company.

Backed by a significant rise in mobile shoppers numbers and a substantial increase in spending per person, the mobile commerce market in Hong Kong increased from HK$1.5 billion in 2011 to HK$6.4 billion in 2012, and the market is expected to reach HK$17.8 billion by 2015, according to the survey.

For the 12 months ended July 2012, the total value of on-line shopping transactions in Hong Kong was HK$15.7 billion, of which, mobile shopping transactions accounted for 41 percent, compared to 2011, when mobile shopping only accounted for 10 percent of the HK$14.6 billion market, the survey shows.

The survey, which was commissioned by PayPal, interviewed 1,003 Hong Kong online shoppers aged 18 and above during August 18 to 23, of which, 53 percent of respondents said they have shopped online via their mobile device (smartphone and tablet) in the past 12 months, the proportion was increased from 19 percent in the same period of 2011.

This meant that per person mobile shopping spending in Hong Kong was HK$5,725 in 2012, increasing from HK$4,002 in 2011, according to the survey.

"Currently, with a 62 percent smart phone penetration rate, Hong Kong is one of the most mobile-centric markets in the world, which clearly explains why mobile commerce is exploding here," said Kerry Wong, managing director of Hong Kong, Korea and Taiwan at PayPal.

"Retailers must truly embrace mobile if they want to meet consumer demand and tap in to this growing HK$6.4 billion market," Wong added.

In addition to the overall growth of the mobile commerce market, the survey showed new forms of mobile commerce such as scanning The Quick Response (QR) code is very popular. Almost seven out of every 10 smart phone users are aware of QR codes, and of those who are aware, around half have used QR codes for an average of five transactions in 2012.

The survey also shows that the majority of purchases used mobile devices via smart phones (58 percent) versus tablets (42 percent) in 2012.

Fashion and accessories is by far the most popular category for mobile shoppers in Hong Kong, with a total of HK$1.29 billion spent for the category in 2012; everyday shopping items such as books (HK$553 million) and movie tickets (HK$525 million) have also been common mobile purchases over the last 12 months.

Given Hong Kong's status as a financial hub, financial products are also a popular mobile choice with HK$260 million spent via smart phones and tablets in 2012.

While Hong Kong consumers are increasing their mobile commerce spending significantly, security concerns and lacks of user-friendliness are the main barriers towards even greater adoption.

The survey showed that 62 percent of non mobile shoppers feel that mobile transactions are not safe enough, while 45 percent cited that the small screen size of their smart phones is a barrier too.