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Online shopping looks ideal answer to HK's retail woes

Updated: 2016-05-17 08:10

By Peter Liang(HK Edition)

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Retail industry leaders want the government to help promote online shopping to boost local sales as the industry continues to be hard hit by falling tourist arrivals, especially from the Chinese mainland.

Latest figures show that Hong Kong's retail sales value in the first quarter of this year amounted to just HK$34.66 billion - down 12.5 percent compared with a year ago. The declining trend is widely expected to persist in coming months.

Dwindling retail sales have been largely attributed to the decrease in tourism spending simply because fewer tourists are coming to Hong Kong to spend. A combination of factors, notably the appreciation of the local currency against those of many neighboring economies, especially South Korea and Japan, are responsible for the drop in tourist numbers.

At the same time, domestic consumption is also expected to slacken as economic growth is trammeled by contracting overseas demand, resulting in falling exports of goods and services which, in turn, has led to rising unemployment. Under such circumstances, boosting consumer spending is seen by policymakers and economists as the most effective way to mitigate the fallout from the economic slowdown because the retail sector remains one of the biggest employers in the SAR's service-oriented economy.

In his latest budget, Financial Secretary John Tsang Chun-wah came up with a sizable amount of relive funds in the form of tax rebates and direct subsidies that can benefit the middle-class and alleviate the hardships of needy families. Retail industry experts hope the government will go the extra mile by making it more convenient for people to shop.

Online shopping has never quite taken off in compact Hong Kong despite the internet's widespread use. Hong Kong is ranked first among world cities in connectivity. But not even Amazon, with its extensive global reach, considers it viable to set up shop in the SAR.

Of course, some individual vendors do sell online. But Hong Kong shoppers don't have the convenience of browsing through everything they may need via the internet equivalent of a mega store.

What the government can do to help promote online sales is, perhaps, something that the newly created Innovation and Technology Bureau can consider. The worsening economic slowdown gives the matter an increased sense of urgency.

(HK Edition 05/17/2016 page7)

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