Social media, eCommerce, online population, usages : all you want to know about the relationship between these Asian islands and the digital wave

1. Hong Kong:
Digital Landscape
Overview
1. Internet and Mobile users
2. Social Media
3. E-Commerce
Source Photo : http://afphongkong.afpnet.org/

2. 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

3. %
Smartphone
62%
20132012
Hong Kong: Overview
Source: Nielsen
2013
Tablet
36%
58%
2012
Desktop PC
2012 2013
85%
Laptop
78%
67% 80%
89%
2012 2013

4. I. Internet and Mobile Users

5. I. Internet & Mobile Users
Few numbers
0
25%
43
%
2
24
%
3
1
South Korea Japan
50%
75%
100%
Hong Kong
High broadband connectivity (>100 Mbps)
0
25%
43
%
2
24
%
1
South KoreaJapan
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

6. I. Internet & Mobile Users
Who 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

7. I. Internet Users
Why do they go online?
0 10 20 30 40 50
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
Why Hong Kongers go Online
I. Internet & Mobile Users
Source: Global Index

8. I. Internet Users
When are they using internet and mobile Apps?
I. Internet & Mobile Users
At home 35%
1
During transportation 17%
2
While Waiting 12%
3
Source: Nielsen

9. I. Internet Users
When 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
I. Internet & Mobile Users
Source: Nielsen

10. I. Internet Users
What 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
I. Internet & Mobile Users
Source: Nielsen

11. I. Internet Users
Where 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%
I. Internet & Mobile Users
Source: Experian Hitwise, jan 2012

12. I. Internet Users
What are they doing on their Mobile?
I. Internet & Mobile Users
S
M
A
R
T
P
H
O
N
E
S
C
E
L
L
P
H
O
N
E
S
Cell phones uses:
1:Play pre-installed games
2:Bluetooth
3:Listening Radio
4:Organizer
5:Surfing Web Pages
6:Text alert
7:Taking Videos
Smartphone uses:
1:Surfing Web Pages
2:access Social Network
3:Play pre-installed games
4:Bluetooth
5:Organizer
6: E-mail
7:Listening Radio
Both uses
1: Text
Messaging
2: Photos
3: MP3
Source: 2010 Nielsen Media Index

13. I. Internet Users
In the meantime?
I. Internet & Mobile Users
Transmedia Consumption
19%
24%
12%
37%
75%
@
@
Watch TV and
Use Internet
Use Internet and
listen to the radio
Watch TV and
Listen to the
Radio
Never in the
same time
Source: Nielsen

14. I. Internet Users
How often are they online ?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Video/Audio Video Audio
Portion of digital consumers who access audio-
visual content
Weekly or more often
Monthly or more often
Last 12 Months
I. Internet & Mobile Users
Source: Nielsen

15. I. Internet & Mobile Users
What about Online Videos?
1
At Reaching Web
population
2
At Videos and
Hours per Viewers
5
At Unique Viewers
HK OV RankingPLAYERS
China
Japan
Australia
Malaysia
Hong Kong
Singapore 43
Source: Comscore, Wikipedia
“Online video viewing has become nearly synonymous with
Internet usage in Hong Kong.” Victor Cheng, Comscore director
for Hong Kong

16. I. Internet & Mobile Users
Where 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

17. I. Internet & Mobile Users
How 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
7.1
4.6
12.7 10.4
1st
2nd
3rd
Source: Comscore Video Metrix 2010

18. I. Internet & Mobile Users
Which Channels are they using?
Major Video channels
Google sites
Facebook.com
Youku
Yahoo sites
Television broadcast
Tudou
Source: Comscore Video Metrix 2010

19. I. Internet Users
Random 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
I. Internet & Mobile Users
Photo: Traveling.org
Source: Comscore Video Metrix 2010

20. II. Social Media

21. II. Social Media
What 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

22. II. Social Media
Who 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

23. II. Social Media
What 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

24. II. Social Media
71%
72%
74%
75%
76%
76%
76%
77%
77%
79%
80%
86%
87%
87%
87%
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.
Top 15 activity driven by 15+ consumers
Going on Social Media, what for?
Source: Global Index

25. 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 friends
Share my opinion
Fill up spare time
Share content
Research to buy
Promote something
Meet new people
Entertainment
Update friends
Talk about brands
Express myself
Research how to do things
I feel like I have to
Research for work
Take on different personality
Networking for work
Education
Find music
Why joining SNS?
Source: Comscore, Global Index

26. III. Social Media
Instant 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

27. III. Social Media
Blogs?
Male
50%
Female
50%
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

28. III. Social Media
What motivates Bloggers in Hong Kong?
0.00% 5.00% 10.00% 15.00% 20.00%
Research how to do things
I fell like I have to
Take on differnent personality
meet new people
networking for work
Education
Find music
organize my life
To talk about brands/products
Research/find a new product to buy
Stay up to date on news/events
Promote something
Research for work
Fill up spare time
Entertainment
Share my opinion
Express myself
Share Content
Keep my friends up to date with my life
Stay in touch with friends
Drive to blogs in %
Source: Comscore

29. III. Social Media
Extra 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 Business
Photo: CK17

30. III. E-commerce

31. III. E-commerce
How 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

32. By l’Atelier
I. Internet Users
Where 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

33. III. E-commerce
Why 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
Offline
Online

34. III. E-commerce
Interesting 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

35. III. E-commerce
Extra 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

36. L’Atelier Management Consulting (Shanghai) Ltd.
Cloud Nine Plaza, 9/F
1118, West Yan'an Road | 200052 Shanghai | China
T 86 21 62 81 85 33 | www.atelier.net | asia@mail.atelier.net