【2024 HKTVMall】Franchising with HKTVmall: Pros and Cons Analysis

HKTVMall collaborates with over 6,200 merchants and product suppliers, and has successfully accumulated over 1 million users. With its franchise program, HKTVMall brings business opportunities to stores of all sizes, enhancing brand awareness and driving sales.

Table of Contents:
・Successful Franchise Cases with HKTVMall
・Benefits of Franchising with HKTVMall
・Limitations of Franchising with HKTVMall
・Franchise Fees with HKTVMall
・HKTVMall Commission Table
・Alternatives to Franchising with HKTVMall
・Advantages of Opening Your Own Online Store
・Considerations for Opening Your Own Online Store

Since joining HKTVMall in 2021, Adidas has offered over 1,270 fashion and accessory SKUs. With the support of HKTVMall’s monthly promotional activities, Adidas has achieved a GMV (Gross Merchandise Value) of 4.2 million Hong Kong dollars in the past three months.

Since joining in 2017, ecHome has accumulated over 400 SKUs. While the initial three months saw fewer than 100 orders, through creative advertising, the order volume has increased by 50 times.

HKTVmall is the highest-traffic online shopping center in Hong Kong, surpassing even physical shopping malls. By joining HKTVmall, merchants can tap into this extensive traffic and attract more consumers.

As a renowned online shopping platform in Hong Kong, HKTVmall has a large base of loyal customers. By becoming a part of HKTVmall, merchants can benefit from its brand reputation and support, boosting their own brand’s visibility and attracting a wider customer base.

Franchising with HKTVmall provides merchants with a ready-to-use e-commerce solution. This means merchants can leverage HKTVmall’s technical support and user interface without the need to build and maintain their own online stores, saving on development and operational costs.

By joining HKTVmall, merchants can utilize the platform’s centralized customer service, improving the shopping experience for customers and saving costs on establishing a dedicated customer service department.

HKTVmall offers comprehensive logistics support, including warehousing, packaging, and delivery services. This alleviates the burden of logistics management for merchants, allowing them to focus on product quality and customer service.

When a consumer purchases only one item on the platform, the store still needs to deliver it to the HKTVmall warehouse. This can put pressure on the store’s logistics and delivery resources.

Merchants are required to pay a certain commission fee to HKTVmall for each sale, affecting the overall profit of the store.

On the HKTVmall platform, stores are unable to access detailed customer purchase data, hindering their ability to understand customer preferences and formulate comprehensive marketing strategies, including remarketing and promotions.

In large online platforms like HKTVmall, stores face price pressures from numerous competitors. Apart from pricing, it can be challenging to differentiate themselves through unique services.

After joining HKTVmall, merchants need to strictly adhere to HKTVmall’s sales policies, including price setting, promotional activities, and other regulations. Failure to comply may result in fines, restricting merchants’ ability to freely develop their own sales strategies.

Franchise Annual Fee for HKTVMall

The annual fee for HKTVMall franchise is $18,000, which averages to $1,500 per month. Additionally, there is a rebate of $18,000 in HKTVmall advertising credits.

Although the HKTVmall franchise program offers access to a large volume of traffic and a stable customer base, based on the limitations mentioned above, merchants should not solely rely on HKTVmall to build a complete online sales funnel. Therefore, opening their own online store can complement the limitations of joining HKTVmall.

Opening your own online store means you have complete control over your brand, website design, product display, pricing strategy, marketing, and customer service. This autonomy allows you to customize the online store experience, differentiate yourself through innovative products, unique services, and a distinct customer experience, creating a brand image that sets you apart from competitors.

Consumers can directly communicate with your store, including inquiries about product details and providing feedback on their needs. This enables you to offer more personalized services and products.

Having your own website gives you the freedom to implement various marketing activities such as email marketing, SEO optimization, content marketing, and more, without being constrained by the rules and limitations of third-party platforms.

Operating your own online store requires businesses to develop more marketing strategies, especially for start-ups without physical storefronts. Increasing brand awareness and product exposure are particularly important in such cases.

Both HKTVMall and having your own online store have their respective advantages. For businesses looking to establish a presence in the Hong Kong e-commerce market, the best strategy is to join the HKTVMall franchise program while also joining the Mshop platform to open your own online store. By leveraging the popularity and reputation of HKTVMall, merchants can increase their visibility. At the same time, utilizing the features of their own online store can enhance consumer loyalty and differentiate themselves from competitors by providing unique services.