Hong Kong is the main business province of China that has extensive exposure into the international trade and market. The traffic commuting online and the usage of internet inChinahas dramatically increased in the past few years. “Although Internet usage inChinahas boomed over the past ten years, the nation’s retail e-commerce is still in startup mode, particularly compared to theUnited States.” (Peters, 2008).
In Hong Kong however the aspect of e-tailing has picked up speed but the quality of the service provided through the e-tailing sector still needs improvements. “When it comes to online retail business inChina, small and midsize enterprises are still a minor presence. According to Analysys International, of the more than 40 million SMEs inChina, just over 100,000 sell their products online to consumers. Most development to date in e-commerce has been with Chinese businesses selling to overseas businesses via a ready-made online interface, or “storefront,” such as Alibaba offers.” (Peters, 2008)
The reason for the stunted growth pf the e-tailing sector in Hong Kong and China has been due to many factors. These include the e-tailing itself that presents a dramatic change to the consumers form shop based purchasing.
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