Homeshopping in Hong Kong, China

2021 DEVELOPMENTS

Ongoing home seclusion has limited impact on homeshopping

The COVID-19 pandemic remained a significant factor impacting the overall retailing landscape in Hong Kong in 2021. However, unlike e-commerce and grocery retailers, homeshopping did not benefit from the home seclusion trend.

No new entries leaves TVB as the major player in this sluggish channel

During the pandemic in 2021, Hong Kong consumers adapted well to both e-commerce and digital payment, and consumers directly compare the shopping experience between homeshopping and e-commerce when deciding which channel would be preferable for them to purchase goods and services. Compared with homeshopping, there are more players in the e-commerce channel which offer a diverse range of products and services from which consumers can choose, with unique positionings and value-added services.

Players continue to allocate resources to promote homeshopping in Hong Kong

Despite the sluggish growth of homeshopping in 2021, TVB launched two series of homeshopping programmes named “Top Sales” in the second half of the year, promoting goods and services available on its homeshopping channel. Besides TVB, ViuTV has also collaborated with the Club, a membership reward programme owned by Hong Kong Telecom Limited, to launch a homeshopping programme to promote goods and services through this channel.

PROSPECTS AND OPPORTUNITIES

The expected growth in e-commerce will continue to constrain growth in homeshopping

With no signs of Hong Kong reopening the border at the beginning of 2022, it is expected that e-commerce will continue its growth momentum, due to the social distancing and lockdown measures imposed to prevent the spread of COVID-19, as well as the online shopping behaviour adopted by Hong Kong consumers during the pandemic. Compared with homeshopping, e-commerce has a relatively lower barrier to entry, as players require a licence before they can own or operate a television channel in Hong Kong.

Potential recovery of tourist flows unlikely to have a positive impact

Unlike other retail channels, the growth of homeshopping relies on the amount of time consumers spend watching television programmes. As COVID-19 pandemic measures relax, the expected increase in foot traffic outside the home will negatively affect the amount of time Hong Kong residents spend watching locally produced television programmes, and will therefore reduce the chance of consumers accessing goods and services listed on the homeshopping channel, as well as their willingness to make purchasing decisions.

Technological innovation needed for future growth opportunities

Facing the threat from e-commerce and other online media, homeshopping players will need to improve the overall convenience of the channel and strengthen the ability for homeshopping to interact with audiences in order to grow again. In markets such as Japan, where the homeshopping channel is well-developed, television programmes can start a poll or ask a question during the broadcast for the audience to vote and respond through buttons on the television remote control.