Hong Kong brands use Malaysia as springboard into Asean e-commerce

KUALA LUMPUR: Hong Kong companies are turning to Malaysia as a test market for expanding across Southeast Asia, using the country's growing e-commerce ecosystem to reach consumers without the upfront costs of building a physical retail presence.

About 100 Hong Kong brands are taking part in the inaugural Hong Kong Shopping Festival in Malaysia, offering more than 350 products as the Hong Kong Trade Development Council (HKTDC) seeks to deepen commercial links with the region.

The week-long festival, which ends on Sept 27, covers beauty and personal care, fashion, food and supplements, smart living and wellness products, with purchases available through Shopee, Lazada and the official festival website.

The initiative marks the first Asean expansion of the annual event, which previously focused on the Chinese Mainland.

Malaysia and Singapore have been selected as the programme's initial Southeast Asian markets, HKTDC said in a statement.

For participating companies, the Malaysian market offers an opportunity to test consumer demand, build brand awareness and gain experience in cross-border e-commerce before committing resources to broader regional expansion.

HKTDC regional director, Southeast Asia & South Asia, Leung Kwan Ho, said the festival was intended to bring Hong Kong products closer to Malaysian consumers while helping participating companies explore new markets.

"Through the Hong Kong Shopping Festival, we hope to bring that experience closer to shoppers here, giving them an easy way to rediscover familiar favourites, uncover new brands and experience the diversity of what Hong Kong has to offer today," Leung said.

The participating brands include Lee Kum Kee, CATALO, Chow Tai Fook, Chow Sang Sang, Wai Yuen Tong and Chicks, alongside smaller and emerging companies seeking exposure in Southeast Asia.

The festival will also feature more than 30 hours of livestream shopping involving Malaysian and Singaporean hosts and influencers, combining product demonstrations, reviews and real-time interaction with consumers.

HKTDC said dedicated campaign pages on Shopee and Lazada will consolidate selected products and promotions, while the festival's website will provide information on participating brands and offers.

The shopping festival is the flagship annual initiative under HKTDC's E-Commerce Express programme, which is designed to help Hong Kong companies expand their cross-border e-commerce operations and reach overseas consumers.

The strategy reflects a broader shift in how companies enter foreign markets, with digital marketplaces allowing smaller businesses to assess demand and establish consumer visibility before making larger investments in distribution networks, retail outlets and local operations.

For Hong Kong businesses, Malaysia could therefore serve as both a consumer market and a testing ground for wider Asean expansion, as the region's digital economy creates new channels for cross-border trade. The initiative is supported by the Hong Kong Special Administrative Region Government.