The logo of Alibaba is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai on July 6, 2023. (PHOTO / AFP)

E-commerce platforms are scrambling for Hong Kong’s consumption market during the Singles Day shopping extravaganza by rolling out a vast array of measures from upgrading delivery services to lowering free shipping thresholds.

Besides massive cross-shop discounts, e-commerce giant Alibaba’s Taobao, the inventor of the annual shopping festival, unveiled the launch of its new cross-border brand Taobao PLUS to tap its five key Asian markets including Hong Kong. According to the company, the unit has invested hundreds of millions of Chinese yuan to offer free shipping and free local returns.

The Singles Day event became the world’s largest shopping festival, outshining Black Friday in the US regarding size and growth. E-commerce platforms’ sales figures have long been seen as a key indicator of the health of the economy, reflecting the landscape of China’s consumer market

For instance, the minimum required spending for free cross-border delivery in Hong Kong has been reduced from 199 yuan ($27) to 99 yuan.

Meanwhile, its delivery partner Cainiao announced next-day delivery from mainland warehouses to shoppers in Hong Kong and will be offering direct delivery discounts.

ALSO READ: Singles Day shopping bonanza off to roaring start

Another e-commerce heavyweight, JD.com, also splashed out on discount programs and upgraded its express delivery service in Hong Kong to offer extended delivery hours and free door-to-door delivery options.

The Singles Day event became the world’s largest shopping festival, outshining Black Friday in the US regarding size and growth. E-commerce platforms’ sales figures have long been seen as a key indicator of the health of the economy, reflecting the landscape of China’s consumer market.

Last year, major Chinese e-commerce players declined to release sales numbers for the biggest annual shopping event for the first time amid economic headwinds. This year’s shopping festival, which starts this week and will run through Nov 11, marks the first since the strict anti-pandemic measures were lifted.

However, Billy Mak Sui-choi, associate professor at Hong Kong Baptist University's accountancy, economics and finance department, noted that internet sales are not quite as popular in Hong Kong as they are on the mainland, though the consumption market is relatively stable.

ALSO READ: Chinese consumers spend big over Singles' Day shopping spree

“Most people prefer to buy stuff in person and only the younger generation buys from the internet,” Mak said.

As of August this year, Hong Kong’s online sales had dropped by 5.6 percent compared to the same period last year, according to the Census and Statistics Department.

Mak added that delivery costs in Hong Kong are much higher than on the mainland and e-commerce platforms have to come up with more methods to allay public concerns.

Scholars from the University of Hong Kong believe e-commerce development in Hong Kong is gaining space. In a market study featuring cross-border e-commerce platforms in Hong Kong released by the University of Hong Kong’s business school, 71 of the respondents indicated that they use these platforms for online shopping at least once a month, while 25 percent said that they use the platforms to make online purchases at least once a week.

READ MORE: Gen Zers backbone of Singles Day shopping bonanza

Hong Kong, with its advanced cross-border e-commerce infrastructure and development potential, has over 4.5 million online shoppers, statistics from Standard Chartered bank showed. The number of online shoppers is projected to reach 6.6 million and the user penetration rate is likely to amount to 88.2 percent of the population by 2027, according to market research company Statista.