At a high level, manufacturers, brands and marketers are all facing similar challenges: GDP growth is low, retail sales are declining and fewer mainland Chinese are visiting Hong Kong. Despite these headwinds, however, there are quite a few opportunities for companies to take solace in. For example, consumer confidence increased 2 points in the fourth quarter of 2016 and Hong Kong consumers say they are ready to increase their discretionary spending.
So, how do you capitalize on these opportunities and pull ahead from the pack in 2017?
First, take a closer look at where the opportunity lies within Hong Kong’s total population of 7.4 million, specifically, Millennials and the Silvers. Next, Hong Kong sees 42.8 million travelers from mainland China each year, so it’s important that retailers and brands deliver on consumer expectations across shopping, luxury and culture. Nielsen research has found that mainland tourists who visit for reasons other than just shopping spend 10% more than those who just visit to shop.
Online commerce also represents a channel that brands need to pay attention to. While not a new channel or one that’s overly significant for actual purchases just yet, e-commerce represents a notable facet of the overall consumer experience, especially among Millennials. But while it’s not surprising that consumers 20-29 are key online shoppers, consumers 30-49 spent an average of more than HK$11,200 (more than US$1,400) online last year.
For more about Hong Kong consumers and what they’re looking for this year, watch the video below.