Newegg isn't widely known in Asia, but they're a popular e-tailer of tech products in the west. Specifically, customers in the US, UK, Canada, and Australia, where the firm currently ships its products.
Newegg has done well with tech products sourced from Asia, and lauded their suppliers at the recent Computex Taipei show. The firm hosted a roundtable discussion ("Newegg: A Global Blueprint for Success") featuring Asia-based executives from ASUS, Changhong, Colorful Group, Deepcool and G.SKill, said Newegg in a statement.
"Newegg maintains deep ties to Asia and, for years, we've been bringing Asia's best products to our customers in the US," said Soren Mills, CMO, Newegg North America. "We're now building on that success as we expand our reach into Europe and other parts of the world."
"Expanding our reach" for an e-tailer means shipping to new territories. And towards the end of the press release, we get the list. Newegg plans to add six countries: "India, Ireland, Netherlands, New Zealand, Poland and Singapore by the end of June."
So where's Hong Kong?
Let's unpack this list, shall we? Ireland piggybacks onto the UK, New Zealand simply turns their Australian operations into ANZ. They add new currencies: Ireland and the Netherlands use the euro, and of course Singapore has the stable SGD. India is likely the biggest challenge, but juggling rupees is a pre-requisite for e-tailers courting India's growing middle class (the press release didn't mention how much of the vast country they intend to cover).
It's intriguing that Newegg chose Poland. Although part of the EU and Schengen, Poland uses the zBoty (literally: "gold") as its currency rather than the euro. Perhaps Newegg will price their Polish offerings in euros--the country does so much business with Western Europe that it's an option.
OK, so we're in Asia lauding Asian suppliers, very nice? And we're gonna start selling in Singapore. No shout-out to Hong Kong? Hmmm...
China, Korea and Japan are large markets with their own currencies. Hong Kong is a small territory (although bigger than Singapore) with a currency tied firmly to the US dollar (unlike Singapore). As Newegg tweaks its Asian supply-chain operations to serve Singapore, I wonder: what does the Singaporean market offer that we don't?
The post office has a different business model compared to years past: instead of a means of communication, it's become a deliverer of goods. Hong Kong Post is an efficient public service that handles documents and packages for businesses and individuals. As we increasingly turn to electronic communication, HK Post increasingly serves as the delivery mechanism for items purchased from e-tailers.
Hong Kong has an excellent retailscape, but there are always items that aren't available locally. Music, films, clothing items, and more are delivered daily from e-tailers like Amazon, Alibaba and Taobao. The latter is serious about the Hong Kong market--they recently rolled out a payment gateway using the Octopus card.
Does Newegg plan to serve this particular market? Does their "Global Blueprint for Success" include Hong Kong? Or do they figure that competing against the cheap and cheerful merchants of Sham Shui Po's Golden Computer Arcade is a losing battle?