HKTV Group outlines 2022 growth plans banking on faster delivery and ad dollars

The upcoming year will be one of growth and new venture at HKTV Group as the group looks to dominate the Hong Kong online shopping mall market, through innovation, marketing and ad revenue.

The group said that for long term sustainable development, it will use innovation and technology to try on different research and development initiatives so as to bring new opportunities to the Group, it said. “We do not know if any initiatives will come to succeed or not, but we know we are going to fail one day if not pursuing for any new development. Doing something new for a sustainable and enduring future is HKTV’s DNA - just like what we did in the past 30 years’ history,” it said.

In 2022, the board is eyeing multimedia advertising income of approximately HK$120.0 million. It said that with an early bird offer launched in September 2021, advertising fee commitments of approximately HK$90.0 million has already been received by end of December 2021. It also aims to grow its annual GMV on order intake for HKTVmall at HK$7.5 billion to HK$8.0 billion, representing a year-on-year growth of 14.2% to 21.8%.

In 2022, the group plans to spend a similar magnitude of marketing and promotional resources as 2021 in order to aggressively drive consumer conversion from offline to online in terms of customer numbers, frequency of purchases and product categories so as to reach the target on GMV on order intake. In 2021, HKTVmall had over 1.2 million unique customers which represents a penetration rate of approximately 22.6% of the 2021 mid-year Hong Kong population aged between 20 – 74.

Last mile is also a key area of importance for the group this year as it ramps up its presence in the eCommerce space. In 2022, the group will invest to enhance fulfilment capacity. In the first half of 2022, it will invest additional HK$5million per month aiming to enhance the capacity to enable 90.0% to 95.0% delivery orders to meet its “2 days delivery” target. This phase is targeted to launch in or around March 2022.

In the second half of 2022, the plan is to enlarge its fulfilment facilities by an additional floor area of 150,000 to 250,000 square feet for provisioning of third party logistics service. The top 85% merchant products  will be stored and three picked in HKTVmall automated fulfilment center upon customer order placement. Merchants will pay the storage fee, picking and packing charge on cost plus basis. This arrangement will further enhance the service level to customers for orders confirmed by mid night, they will be delivered in the next morning.

“With the above better customer experience, we believe that the consumer purchasing behaviours will be changed fundamentally, which is expected to drive HKTVmall’s business growth and penetration to the consumer market, as well as the entire eCommerce development at HKTV Group,” said the group.

The group is also launching its technology business venture on self-invented automated retail store and system has confirmed its first launch location in Manchester of United Kingdom. With the objective to use technology for better living, the new venture is now under local set-up remotely while the Hong Kong and UK engineering team is working to further enhance the machine design and to prepare for mass production facility.

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