2019 retail market outlook.

high consumer confidence results in increased spendings. 

 

Hong Kong offers a wide variety of brands and shopping options for locals and shoppers from mainland China and around the region. In 2018, we saw high levels of consumer confidence that resulted in increased spending. New athleisure and luxury brands were also seen entering the Hong Kong market as part of their global expansion plans, where they seek to tap into the wallets of Asian shoppers. 

However, market instability from the ongoing US-China trade conflict and the shrinking stock market is starting to have a direct impact on consumers’ spending behaviour

The Hong Kong’s retail market is facing fierce competition from mainland China as many international brands are relocating their Asia Pacific headquarters to cosmopolitan cities such as Shanghai and Beijing. This move not only enables companies to gain a better understanding of local customer behaviour and cultural nuances, it also allows them to engage consumers directly through popular social media platforms in China such as WeChat or Weibo. International brands are also increasingly engaging Chinese celebrities, key opinion leaders and influencers as brand ambassadors to build public awareness and appeal to the Chinese customers. 

Despite these external factors, researchers and experts are confident that overall purchase intention will remain strong in Hong Kong, with moderate growth of 5%-10% in 2019. Consumers are also more likely to spend on mid-level brands (i.e. fast fashion brands) instead of the high-end luxury market next year. 

 

To read more, download our 2019 market outlook & salary snapshot here.


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