“It’s not possible to have multiple dominant players in, considering the size of this market,” Lai said. “Tmall Hong Kong’s logistics efficiency, variety of products and number of merchants cannot compete with those of HKTVmall.”
The decision to cease Tmall Hong Kong’s operations was made because of a change in business strategy, according to the platform’s notice. It indicated that the city’s consumers will continue to be served via Alibaba’s main Chinese retail sites, leading social commerce platform Taobao and Tmall, its premium online marketplace for major international and Chinese brands and retailers.
“Tmall Hong Kong’s closure will not impact local consumers significantly because there are a lot of online shopping platforms to choose from,” Zhang Yi, chief analyst at Guangzhou-based iiMedia Research, said on Wednesday.