Hong-Kong Digital Ecosystem by L'Atelier BNP Paribas

Hong Kong:Digital Landscape

Overview

1. Internet and Mobile users2. Social Media3. E-Commerce

Source Photo : http://afphongkong.afpnet.org/

Hong Kong: Overview

7.153,5519 Million People

• 5.329,372 Million Internet Users • 74.5% : Internet Penetration

• E-commerce Market Size : 1.54 Billion Euros

• M-commerce Market Size : 0.63 Billion Euros

Source: Internetworldstats

%

Smartphone

62%

2013

2012

Hong Kong: Overview

Source: Nielsen

2013

Tablet

36%

58%

2012

Desktop PC

2012 2013

85%

Laptop

78%

67% 80%

89%

2012 2013

I. Internet and Mobile Users

I. Internet & Mobile UsersFew numbers

0

25%

43%

2

24%

31

South Korea

Japan

50%

75%

100%

Hong Kong

High broadband connectivity (>100 Mbps)

0

25%

43%

2

24%

1

South Korea

Japan

50%

75%

100%

Hong Kong

Average Peak Connection Speed by Country

4

Hong Kong is ranked 3rd highest broadband connectivity, and 1st average connection speed in the world.

Source: Akamai Technologies

I. Internet & Mobile UsersWho are they ?

17.3% 28.4% 26.4% 20.0% 7.8%

15 - 24

24-34 35-44 45-54 55+

AGE DEMOGRAPHIC % BREAKDOWN % of online Hong-Kongese

30% 27.2% 21.7% 14.2% 5.5%

2,552,769.02,776,602.0

52.1% 47.9% 51.7%

48.3%

Source: The Global Media Intelligence Report Asia Pacific: July 2011

I. Internet UsersWhy do they go online?

Express thereself

Meet new people

Organize their life

Play games

Update friends on their life

Education

Videos, TV Shows, Movies

Entertainment

Research for work

Research/find products to buy

News events

0 5 10 15 20 25 30 35 40 45 50

Why Hong Kongers go Online

I. Internet & Mobile Users

Source: Global Index

I. Internet UsersWhen are they using internet and mobile Apps?


At home 35%

1

During transportation 17%

2

While Waiting 12%

3

Source: Nielsen

I. Internet UsersWhen are they using internet and mobile Apps?

0

40

30

20

10

43%

In transportation

24%

While Waiting

At work

11%

Watching TV at home

Free time at home

6%

Before sleep

5%

Other Free time

2%

Gathering with family/friends

Occasion of using internet mobile/tablet Apps

6%7%

6%7%

16%

30%

40%

9%

8%

9%

Mobile Apps

Tablet apps


Source: Nielsen

I. Internet UsersWhat are they doing

Booking/buying travel items

Booking/buying event or movie tickets

Buying items online

Posting on forums

Banking/Bill payment

Playing games

Sporting news, information, results

Connecting/Interacting with companies via SN sites

Watching online video

Travel/transport info

Browsing other people's post, photos, messages

Updating SN profile

Maps/directions

Instant messaging

Weather

News

Email

Conducting a search

29%

32%

45%

46%

42%

45%

43%

42%

62%

54%

64%

60%

59%

48%

58%

72%

68%

74%

21%

26%

31%

34%

35%

36%

39%

43%

48%

52%

67%

69%

69%

71%

76%

77%

78%

79%

Hong Kong Mobile and Tablet Users Online Activity

Mobile

Tablet PC


Source: Nielsen

I. Internet UsersWhere are they looking ?

Hong Kong Top Sites

Facebook

8.27%

Yahoo! Hong Kong

3.93%

Google

2.05%

Yahoo search

Facebook

4.74%

Youtube

2.58%

Google Hong Kong

1.56%


Source: Experian Hitwise, jan 2012

I. Internet UsersWhat are they doing on their Mobile?


SMARTPHONES

CELLPHONES

Cell phones uses:1:Play pre-installed games

2:Bluetooth3:Listening Radio

4:Organizer5:Surfing Web Pages

6:Text alert7:Taking Videos

Smartphone uses:1:Surfing Web Pages

2:access Social Network3:Play pre-installed games

4:Bluetooth5:Organizer

6: E-mail7:Listening Radio

Both uses1: Text

Messaging2: Photos

3: MP3

Source: 2010 Nielsen Media Index

I. Internet UsersIn the meantime?


Transmedia Consumption

19%

24%

12%

37%

75%

@

@

Watch TV and Use Internet

Use Internet andlisten to the radio

Watch TV and Listen to the

Radio

Never in the same time

Source: Nielsen

I. Internet UsersHow often are they online ?

Video/Audio Video Audio0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Portion of digital consumers who access audio-visual content

Weekly or more oftenMonthly or more oftenLast 12 Months


Source: Nielsen

I. Internet & Mobile UsersWhat about Online Videos?

1At Reaching Web

population

2 At Videos and

Hours per Viewers

5At Unique Viewers

HK OV RankingPLAYERS

ChinaJapan

AustraliaMalaysia

Hong KongSingapore 43

Source: Comscore, Wikipedia

“Online video viewing has become nearly synonymous with Internet usage in Hong Kong.” Victor Cheng, Comscore director for Hong Kong

I. Internet & Mobile UsersWhere is HK compared to other countries?

0

25

43%

24%1

Japan

50

75

100

Online Video Viewing by Markets July 2010

1

1 1 1 1

200

1 1 1 1 1 1

Australia Malaysia Hong Kong

SingaporeChina

Unique Viewers (000)

% Reach Web Pop

Videos per viewers

Source: Comscore, Wikipedia

I. Internet & Mobile UsersHow long are they watching videos?

0

5

43%

24%

7.5

Japan

10

20

15

Online Video Viewing by Markets July 2010

24

Australia Malaysia Hong Kong

SingaporeChina

Hours per viewers

16.8

7.14.6

12.7 10.4

1st

2nd3rd

Source: Comscore Video Metrix 2010

I. Internet & Mobile UsersWhich Channels are they using?

Major Video channels

Google sites Facebook.com

YoukuYahoo sites

Television broadcastTudou


I. Internet UsersRandom Fact

Source : http://econsultancy.com

Internet usage in Hong Kong is particularly high among those aged 12 to 44 with over nine in ten accessing the Internet on a monthly basis.

There are more than 10,300 public Wifi Hotspots around Hong Kong.

Hong Kong fixed broadband penetration rate is among the highest in the world. The city is one of the leader in FIFTH technologies


Photo: Traveling.org


II. Social Media

II. Social MediaWhat are Social Media in Hong Kong?

54.5%of population on Facebook

3.5 Million Unique visitors on Youtube with a 67.4% Reach

5.1 Million Unique visitors on Linkedin with a 10.1% Reach

Less than 1% of population on Twitter

Source: Socialbakers, Marketingweek

II. Social MediaWho are the top 5 Media Channels?

Facebook ,5.300m pages views 77.1% Reach

Youtube, 650m pages views 63.4% Reach

Blogspot, 24m pages views 39.4% Reach

Wikipedia, 54m pages views 38.9% Reach

Twitter, 5.7m pages views 6.4% Reach

Source: Burson Marsteller Asia Pacific

II. Social MediaWhat about top SNS Websites?

84.5%

77.1%

63.4%

47.8%

39.4% 5

4

1

2

3

Top 5 Websites (% Reach)

Source: Burson Marsteller Asia Pacific

II. Social Media

Watching an online video about a product/service

Connect with/interacting with organisations/companies

Using sharing buttons to share content such as news articles

Reading blogs

Sending/sharing links via social networking sites

Posting on online forums/message boards

Posting/uploading/sharing photos

Reading online forums/discussion boards

Uploading photos on social networking sites

Clicking the facebook 'like' button for a brand or organization

Reading other people's comment about brands/products/services

Updating your social networking profiles

Wall posts/ status updates/group messages via social networking sites

Private messages via social networking sites

Brownsing other people's posts, photos, messages etc.

71%72%74%75%76%76%76%77%77%79%80%

86%87%87%87%

Top 15 activity driven by 15+ consumers

Going on Social Media, what for?

Source: Global Index

III. Social Media

28%

12%

8%7%

7%

6%

6%

4%

4%

4%

3%2%

2%2%1% 1% 1% 1% 1%Stay in touch with friendsShare my opinionFill up spare timeShare contentResearch to buyPromote somethingMeet new peopleEntertainmentUpdate friendsTalk about brandsExpress myselfResearch how to do thingsI feel like I have toResearch for workTake on different personalityNetworking for workEducationFind music

Why joining SNS?

Source: Comscore, Global Index

III. Social MediaInstant Messaging?

Hong Kong Internet Users Spend Twice as Much Time on Instant Messengers than counterparts in the Asia-Pacific Region.

Will Hodgman, comScore executive vice president for the Asia-Pacific region stated that “an average Hong Kong Internet user spends more than 25 hours online per month, making it one of the most engaged Internet markets globally. Although Hong Kong is a smaller Internet market in Asia, its highly engaged and affluent audience makes it especially valuable to advertisers and publishers.”

2 Top Popular Messaging

Source: Comscore

Messenger & Skype

III. Social MediaBlogs?

Male50%

Fe-male50%

2 Top Popular Blogs

From 2009 to 2010, there has been a 42% increase in the rate that Hong Kong Internet users from the 'Silver Hair' generation (those aged between 50 and 64) contributed to blogs and forums.

Source: Comscore Synovate

III. Social MediaWhat motivates Bloggers in Hong Kong?

Research how to do thingsI fell like I have to

Take on differnent personalitymeet new people

networking for workEducation

Find musicorganize my life

To talk about brands/productsResearch/find a new product to buy

Stay up to date on news/eventsPromote something

Research for workFill up spare time

EntertainmentShare my opinion

Express myselfShare Content

Keep my friends up to date with my lifeStay in touch with friends

0.00% 5.00% 10.00% 15.00% 20.00%

Drive to blogs in %

Source: Comscore

III. Social MediaExtra facts

The average internet user in Hong Kong watches more than 147 online videos per month = 12h of online video every month

50% of people in Hong Kong have made a purchase based on a Blog review

85% of Hong Kong’s Smartphone owners use Mobile apps while commuting

Time spent on Instant Messenger accounts for nearly 16% of total time online.

Source: Hong Kong BusinessPhoto: CK17

III. E-commerce

III. E-commerceHow is E-commerce doing in Hong

Kong?

Hong Kong is one of the most connected city in the world ( Ranked 2nd).

Paradoxically it is the smallest player in term of E-commerce and M-commerce in APAC (Ranked 5th)

Source: Akamai’s report “The State of the Internet, 1st Quarter, 2013”

%74.4%

1.2%

M-commerce/ E-commerce penetration

Mobile / Internet Penetration

0.5%100%

No 2

By l’Atelier

I. Internet UsersWhere is Hong Kong compared to

others?

APAC E-commerce/M-commerce comparison

III. E-commerce

43%

9%

E-commerce

M-commerce

China

Japan

South Korea Taiwan

Hong Kong

Hong Kong Ranking

5/5

5/5

III. E-commerceWhy such a Lack of E-commerce in Hong Kong?

Local Attitude

Labor

Proximity

Source: Advits Digital

Condensed city= People like to be outside of there apartments

Proximity

HK is a small place, with one of the most efficient public transportation system in the world + Cheap taxis + Free delivery when offline shopping

Cheap labor cost = No need to reduce cost with e-commerce + Strong local employment

Labor

Local Attitude

99%

1%

Sales by format

OfflineOnline

III. E-commerceInteresting Online 2 Offline dynamic

Hong Kongers do not pay online, but search for online good deals that they can purchase offline.

Finding good deals online

Then go outside to meet the person, and

pay for the good

$$$$$

Online Offline

Source: CCN Travel Hong Kong

III. E-commerceExtra facts

Hong Kong ranks first as the most highly penetrated online banking market in the Asia Pacific region

Photo Source: www.gentside.com

Top online banking sites are HSBC, Bank of China (Hong Kong) and Standard Chartered

Source: Nielsen's research, Comscore

L’Atelier Management Consulting (Shanghai) Ltd.

Cloud Nine Plaza, 9/F 1118, West Yan'an Road | 200052 Shanghai | ChinaT 86 21 62 81 85 33 | www.atelier.net | [email protected]

http://www.atelier.net/

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Hong-Kong Digital Ecosystem by L'Atelier BNP Paribas

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