Internet shopping has seen tremendous growth over the past few years. However, its adoption has been slower in Hong Kong and purchasing online still accounts for only a small fraction of total retail sales in this city. Against such a background, the need to identify target market segments is heightened. This paper discusses the application of cluster analysis to segmenting the Internet shopping market in Hong Kong. In total nine market segments are identified and profiled among the three major groups of Internet users, Internet shoppers and non-Internet users. Implications for practitioners are also discussed.