HKIRC Survey Reveals “Key Factors Impacting Purchasing Decisions on e-Shopping Websites in Hong Kong” at 2014 Digital Marketplace Seminar

Local shopper behaviour is changing as more experience is gained by both online buyers and sellers

HONG KONG, 6 August 2014 – Research by the Hong Kong Internet Registration Corporation Limited (HKIRC) announced today revealed a change in shoppers’ behaviour, with more people now looking for information online before making purchase at stores and vice versa. The results were announced at the “2014 Digital Marketplace – Would O2O open doors for local business?” seminar. Mr. Daniel Lai, BBS, JP, Government Chief Information Officer, HKSAR Government, was the officiating guest at this annual event.

Online shopping has been growing significantly in Hong Kong in recent years. With more than 4.67 million# Internet users and over half of the population using smartphones in Hong Kong, 96 percent* of the city’s smartphone owners are using mobile Internet service on a daily basis, ranking Hong Kong the first in Asia. In addition, the HKSAR government has set up a HK$50 million fund^ to promote the use of technology among local retailers to encourage the integration of online and offline channels to enhance the customer experience and seize online business opportunities.

Conducted in July, the survey was based on data from 2,264 respondents from a random sample of 100,000 Internet users in Hong Kong. The survey aimed to unveil the key factors affecting online purchase behavior, as well as public perception of .hk websites in terms of brand awareness and safety of online shopping. When asked about the factors impacting users’ intention on making online purchases, respondents cited the following top five factors:

  • Privacy of personal data provided to shopping websites should be protected
  • Transaction data should be well protected
  • Terms of purchase should be stated clearly
  • Product details should be clearly listed
  • Contact details should be prominently displayed

Other key survey findings include:

  • More ready to making purchases online: Over 60% of respondents do not make immediate purchase in physical stores as they may make an online purchase a few days later
  • Product information online is regarded as more reliable: Over 80% of respondents refer to product information online before making purchases in store
  • Lack of knowledge about website security: Over 70% of respondents do not know how to distinguish a secure website from an insecure one
  • More caution given to shopping websites: Nearly 20% of respondents’ have experienced personal data/credit card details being stolen after shopping online.

In general, the ratings of level of trust, positive impression, and safety of .hk websites are slightly higher than non .hk websites. In particular, the “shopping safety” dimension ranked 8.6 percent higher on .hk than non .hk shopping websites, indicating that users feel safer about making a purchase by credit card on .hk shopping websites.

“The survey indicates that the buying behaviour of local consumers has changed as more experience with the online shopping process is gained by both the buyers and sellers. Consumers now tend to check online before making a purchase in store, or vice versa.” said Mr. Jonathan Shea, CEO of HKIRC. “Businesses can make use of both online and traditional channels to provide more interactive, efficient and assuring services on their websites, while preserving the good attributes of traditional shopping experience. Retailers who sell their products via offline channels can also grasp this opportunity and achieve breakthroughs with the ongoing development of the new digital economy.”

Not only does HKIRC proactively promote the use of Internet among the local Internet community, it also keeps strengthening security measures of .hk and continues to nurture a safe Internet environment. In 2013, the total number of recorded .hk spamvertising and phishing cases was seven, a 42% drop from the previous year. In January 2014, HKIRC launched .hk LOCK, which provides better protection of .hk websites by locking DNS records. Through the service, the domain owner can prevent unauthorised changes of the domain name server record by cyber criminals. For more information about .hk LOCK please visit: www.hkirc.hk/useHKLock/index.html.

At the “2014 Digital Marketplace – Would O2O open doors for local business?” seminar today, close to 450 participants acquired first-hand market intelligence and explored proven best practices. Guest speakers from mabelle.hk, gogovan.com.hk; viss.hk, kites.hk and baiduhk.com.hk and other industry leaders shared their opinions on various topics. For details, please read: www.hkirc.hk/dmp/2014/index.html

“We are pleased to see such an enthusiastic response this year, as the DMP seminar has evolved into one of the industry’s premier events. We hope local enterprises can leverage on O2O to get ahead of their competitors in the ever-changing digital world,” said Mr. Shea.

# Census and Statistics Department’s Report (http://www.censtatd.gov.hk/)
* Google: Our Mobile Planet Hong Kong 2013 Report (http://think.withgoogle.com/mobileplanet/en/downloads/)
^ 2014/2015 Hong Kong Budget (http://www.budget.gov.hk/)

Jonathan Shea, CEO of HKIRC, with guests at 2014 Digital Marketplace Seminar.

Jonathan Shea, CEO of HKIRC, with guests at 2014 Digital Marketplace Seminar.


Jonathan Shea, CEO of HKIRC, presenting at 2014 Digital Marketplace Seminar media briefing.

Jonathan Shea, CEO of HKIRC, presenting at 2014 Digital Marketplace Seminar media briefing.


About HKIRC
Hong Kong Internet Registration Corporation Limited (HKIRC) is a non-profit-distributing, non-statutory company limited by guarantee designated by the Government of the HKSAR to undertake the administration of Internet domain names under the .hk and .香港 country code top level domain. HKIRC provides registration services for English domain names ending with .com.hk, .org.hk, .net.hk, .edu.hk, .gov.hk, .idv.hk, .hk and Chinese domain names ending with .公司.香港, .組織.香港, .網絡.香港, .教育.香港, .政府.香港, .個人.香港, .香港, and other domains to be introduced from time to time in Hong Kong.




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