The share price of online retailer Hong Kong Television Network fell over 6% on Tuesday as Alibaba’s Tmall prepared its soft launch in the city.
HKTV closed at HK$9.77 (US$1.26) on Tuesday, following an almost 8% drop in price in the morning.
The fall came as competitor Tmall prepared to enter the market on Wednesday. The Taobao spin-off will offer free delivery and other discounts this week.
Chan Chi-kin, Tmall’s head of Hong Kong and Macao operations, said its decision to trade in Hong Kong was driven by the city’s high average income and potential in its e-commerce market.
It is hoped that the platform could be tailored to Hong Kong users in the future, he said.
A HKTV spokesperson said the company believed there was still space in Hong Kong’s online retail market. It welcomed competitors, but believed that its brand was attractive to Hong Kong users and had accumulated loyal customers.
HKTV began to focus on e-commerce after Hong Kong authorities denied its application for a television broadcast license in 2013. It has since become one of the biggest online retailers in the city.
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