Hong Kong Television Network chairman Ricky Wong Wai-kay says the multimedia company’s online shopping platform HKTV Mall has lost HK$200 million (US$25.7 million) a year since launching 24 months ago.
He does not expect the business to break even for a few years, noting that it took seven years for his broadband business to do so.
Wong says the online mall will expand its logistics arm to meet the growing number of orders, including boosting delivery van numbers to more than 100. It will set up another warehouse next year and update its warehouse logistics system.
There are also plans to diversify products.
“Consumers’ shopping habits have been changed by the internet,” says Wong. “They are shifting to global eCommerce platforms to seek cheaper goods.”
HKTV Mall has one million viewers, with 100,000 making purchases in the past six months.
“I have benefited from the convenience of HKTV Mall myself,” he says. “I have bought 12 pairs of shoes in the past 10 months. Such things never happened before I opened the mall.”
Meanwhile, Hong Kong’s high rents may result in it losing its “shopping heaven” status. “Currently, the rent level in Hong Kong is four times that in Tokyo and double that in Paris, which drives local consumers to purchase overseas.
“A pair of shoes of the same brand sells for HK$3000-4000 in Hong Kong, but only HK$2000 at a British online store. This proves that online platforms can offer a relatively lower price.”
HKTV Mall opened its first physical store in North Point last month for promotion and to attract customers who do not shop online. The store costs include renovation fees of more than $100,000 and rent of less than $50,000.