AdMart had planned to change shoppers’ traditional retail habits and bring them on-line. It provoked a price war among Hong Kong’s supermarkets when it launched with discount prices and its free home delivery service. However, the company failed to find popularity with consumers and the cost of fulfilling small orders proved too much.
AdMart’s products varied from groceries, furniture and appliances to office supplies. The average order size is reported to have been around HK$500 (£44) compared to a minimum order size of HK$780 (£69) required for profit.
According to the South China Morning Post, Anton van Gorp, the chief executive of adMart, said the company would now concentrate on its core media business. He added, the migration we hoped for did not occur. Significant buying on-line has not taken hold in Hong Kong.”