E-COMMERCE

By Anthony Leung | January 14, 2025

The rapid growth of cross-border e-commerce in Asia has set new standards in logistics services. As the local economy evolves, Hong Kong businesses can tap into customer trends to sustain long-term growth.

• Hong Kong remains an essential hub for international trade. 
• Across the region, Gen Z dominates among spending groups, but shows an increasing focus on sustainability.
• Investment in advanced technologies and smart logistics will benefit Hong Kong businesses in the long term.

Against a backdrop of growing cross-border e-commerce, Hong Kong is looking to maintain its competitive edge among Asian markets. Businesses here are tapping into international opportunities while leveraging the region’s unique capabilities. We see three emerging trends that underscore the city’s status as an integral hub for international trade. 

Trend 1: Global trade in intra-Asian markets is on the rise among Hong Kong-based businesses

Hong Kong is ranked among the freest economies in the world. It facilitates smooth cargo clearance and is in close proximity to numerous key logistics bases in mainland China. 

According to Hong Kong’s government data, over 9,000 overseas and mainland Chinese companies have chosen Hong Kong as their base to fully leverage the city’s roles and functions as a “super connector” and a “super value-adder”. Since the end of 2022, more than 100 prominent global innovation and technology enterprises have decided to establish or expand their businesses in Hong Kong.

As one of the key cities in the Greater Bay Area (GBA), Hong Kong plays a pivotal role in fostering cross-border trade and e-commerce, cementing itself as the “headquarter of business” for the region's economic advancement. Hong Kong trading businesses continue to prioritize the city as a critical international business hub facilitating global import and export trade.

Air cargo, particularly air express delivery, carries high-value trade and plays a crucial role in e-commerce. As of November 2024, cargo throughput has continued to rise, showing double-digit year-on-year growth in Hong Kong, bringing the air cargo volume to a 14.8% increase and exceeding 4.5 million tonnes. This growth was mainly driven by a 18.6% increase in both transshipments and exports, with cargo traffic to and from Europe, the Middle East and North America.

Trend 2: Growing consumer base, Gen Z, is prioritizing sustainability and personalized online shopping

Sustainability has become indispensable to modern business operations, driven by significant shifts in consumer behavior. This rings particularly true for Gen Z, a significant portion of our customer base, whose expectations have evolved. They seek online shopping, personalized experiences, flexible services and prefer more sustainable options. 

The latest FedEx whitepaper reveals that environmental concerns are a key factor in consumer adoption of sustainable shopping practices, with the majority willing to pay a premium for products that have lower environmental impact than the alternatives.

Gen Z consumers are also prioritizing digital experiences and have significant purchasing potential, making them the strongest emerging consumer force in cross-border e-commerce. Global data shows that 61% of Gen Z consumers prefer to shop on cross-border e-commerce platforms.

E-commerce companies that strengthen their sustainability efforts will enhance brand value and maintain customer appeal. The right sustainability strategies enable businesses to reach a wider customer base, increase competitiveness and support consumer values.

Trend 3: More companies investing in advanced technologies to propel cross-border opportunities

As announced in the Hong Kong 2024 Policy Address, smart logistics has become a major focus in the city. Hong Kong’s sophisticated trade and logistics sector makes the city an ideal testing ground for high-tech industry trends. One trend is autonomous robots, capable of boosting efficiency by up to an estimated 300% with returns on investment within three years. 

To support the development of high value-added logistics services, the Hong Kong government has set up platforms such as InnoHK to collaborate with global leaders to train robotics and AI talents in Hong Kong.

Another initiative is formulating strategies to facilitate Low Altitude Economy (LAE) development between Hong Kong and mainland China.

Our latest research with Forbes Insights shows that investment in smart, advanced technologies along with sustainable practices is critical for streamlining trade. These measures enhance supply chain visibility and operational efficiency. Businesses can monitor their supply chains and manage operations with greater precision under every business scenario, as well as respond to emerging economic trends. 

FedEx’s latest smart solutions – such as our One-Stop Logistics Service in Hong Kong - are designed to help e-commerce businesses deliver flexible and reliable services to local customers while complying with overseas regulations.

We collaborate with authorities and industry partners in Hong Kong to enhance customs clearance efficiencies and support efficient trade. As we look to the future, we see vibrant economic growth, cultural affinities and regional trade deals driving optimism in Hong Kong, the GBA and ASEAN markets. We look forward to seeing how businesses demonstrate buoyancy as well as resilience.

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For more insights and recommendations on e-commerce trends that are shaping the future of Hong Kong, read the full report here.