Analysis of Mobile Commerce Market in Hong Kong

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Analysis of Mobile Commerce Market in Hong Kong
Chi Hong LEUNG

Yuen Yan CHAN

Candy Suk Ching CHAN

leungch@cuhk.edu.hk

rosannachan@cuhk.edu.hk

candychan@cuhk.edu.hk

Dept. of Curriculum & Instruction
Dept. of Information Engineering
Dept. of Curriculum & Instruction
The Chinese University of Hong Kong The Chinese University of Hong Kong The Chinese University of Hong Kong Hong Kong
Hong Kong
Hong Kong
(852) 2609 8092
(852) 2603 7419
(852) 2609 8092

ABSTRACT

Hong Kong is one of the cities with the highest penetration rate of mobile devices in the world. There is the potential for Hong Kong to be a leader of mobile commerce. Recently, the six local mobile network operators stimulated usage of SMS to promote

mobile Internet markets. In addition, the Hongkong Post
launched the mobile digital certificates for community-wide
adoption of mobile commerce. However, the customers are not
buying what might be expected, and mobile commerce is a
relatively new concept to most of Hong Kong people. The initial consumers are fundamentally committed to new technology and
like getting their hands on the latest innovations. They should be the major market segment in this early phase of development. Hong Kong is an international financial center, and the premier gateway for trade and investment moving into and out of China. This offers an opportunity that the information and news provides a valuable market to mobile commerce. This paper will discuss these factors and analyze the mobile commerce market in Hong Kong.

Categories and Subject Descriptors
eBusiness Management

General Terms

Management, Economics, Human Factors

Keywords

mobile commerce, marketing analysis, mobile network operator, communication standard, mobile e-cert, information market

1. INTRODUCTION

Electronic commerce is developing most remarkably around the world.
It can generate an enormous potential market in
cyberspace. Businesses risk obsolescence if this trend is ignored. Electronic commerce brings new business opportunities and
opens up new markets. This will be one of driving forces for future economic growth in Hong Kong. It is estimated that in

Copyright is held by the author/owner.
ICEC 2003. Pittsburgh, PA
ACM 1-58113-788-5/03/09

408

Hong Kong the total value of products and services transacted over the Internet will increase from US$60 million in 1998 to US$2.4 billion by 2003. In Hong Kong, nearly 90% of the
households and all the commercial buildings are covered by
broadband networks [3].
Just as the Internet spawned a boom in investment in new types of electronic products and services, mobile commerce (m-commerce) is generating a boomlet of its own. The latest wireless and mobile technologies can shorten the distance of people and enhance the massive data exchange through the networks. With the advance in wireless network technologies, mobile commerce is gaining recognition. Hong Kong has one of the most vibrant mobile

telecommunications markets in the world. The high level of
mobile penetration rate (over 80%) creates the potential for Hong Kong to be a leader in developing mobile commerce technologies [3]. The mobile phone has overtaken the Internet as the tech object of desire for Hong Kong people, according to research from the Public Opinion Programme of the University of Hong

Kong. Therefore, Hong Kong appears to be one of the most
promising m-commerce markets in Asia. In stark contrast to the Internet business model, this new business model will be the future mainstream business.
M-commerce can be considered the second technological
innovation in the wake of the e-commerce. It is an extension of the Internet connected with fixed computers to a mobile
environment connected with mobile devices. Although computers will still be the major driving force behind the Internet because of greater computation power, it is not convenient to carry computer anywhere due to the bulky nature...
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