Taobao expands into the Hong Kong market with a 1 billion HKD investment, offering free shipping for purchases over 99 HKD

Alibaba (09988) announced yesterday that its subsidiary Taobao will invest RMB 1 billion in Hong Kong this year to enhance the consumer experience. Starting from October, Taobao will launch a 3-month limited-time free shipping service, where items with the "HK$99 free shipping" tag (covering all items except large items) can enjoy free shipping to Hong Kong self-pickup points or self-pickup lockers for purchases over HK$99, without paying cross-border shipping fees to Hong Kong. Additionally, Taobao Hong Kong will offer new user red packet gifts (valued at HK$300) during the promotion period, and release 1000 quota-free orders (first come, first served) every Saturday at noon.

New users receive HK$300 red packet gifts

Furthermore, to make shopping easier for Hong Kong residents, Taobao has made 6 experiential changes, including allowing registration through accounts such as Google, Facebook, and email, as well as upgrading the "Buy Now" function.

Currently, over 92% of products have self-shipping services, with an average delivery time from Mainland China to Hong Kong of 3 to 4 days. Local return services have been launched, and cross-border return services will be introduced next month. Starting from October 22nd, UnionPay payments will be exempt from handling fees. The number of rookie self-pickup points and lockers in Hong Kong will increase significantly to 800, with around 400 self-pickup points extending their service hours.

Permanent free shipping is the long-term goal

Taobao has successively provided various promotions involving free shipping activities, such as Taobao PLUS and recent full-category free shipping for clothing. Now, limited-time full-category free shipping is available, with different forms of related promotions to follow. When asked whether free shipping in Hong Kong will become permanent, Ye Jianqiu, General Manager of Taobao Tmall Overseas Business Unit, expressed that it is their goal, emphasizing that Hong Kong has always been a key market.

Chen Zijian, Head of Taobao Tmall Hong Kong and Macau Business Unit, stated that the response to the launch of Taobao PLUS last year was ideal. After introducing full-category free shipping for clothing, related orders increased fivefold, leading to increased investment. It is expected that the new promotions will boost orders and require an expansion of the local fleet. Despite consumer downgrading and Hong Kong residents heading north, Taobao Hong Kong's business volume is still expected to grow at a high double-digit rate this year.

Additionally, there will be a collaboration with Sun Hung Kai Properties to open the "Hong Kong Furniture Online and Offline Experience Center".

Clarification: SF Express has not been delisted

Last Thursday (the 19th), Taobao stopped offering the "Direct Express - Rookie" and "Consolidated Express - Rookie - SF Express" delivery options provided by SF Express, leaving only the "Direct Standard - Rookie" and "Consolidated Standard - Rookie" options. This caused dissatisfaction among customers. Taobao Hong Kong clarified that it was a misunderstanding and emphasized that SF Express has not been delisted.

Chen Zijian explained that in the past, different logistics networks were separated when selecting self-pickup points, and once selected, they could not be changed midway. To simplify the logistics experience, interface integration will be carried out. After completing fine-tuning and technical improvements, customers will see all logistics networks appear in the self-pickup network options, including options from Rookie, Hongkong Post, and SF Express