Brace yourselves! Hong Kong consumers are feeling increasingly less confident as the year progresses, with inflation and the rising cost of living at the forefront of their minds, according to a recent survey by Ipsos Hong Kong. The survey found that two-thirds of Hong Kong residents are concerned about inflation, up from 55% in April, with rising prices for essentials like food and fuel being major factors. Over three-quarters of respondents believe that the cost of living will continue to rise over the next 12 months, which is a worrying trend for Hong Kong’s economy, as consumer spending is a key driver of growth.
However, the survey also revealed that Hong Kongers are not merely sitting and wallowing in despair. Instead, they are taking proactive measures to counter the rising costs, such as comparing prices, looking for deals and coupons, shopping at stores with competitive prices, and purchasing store-owned brands or generic products. The older generation is leading the charge on cost-saving behaviors, while millennials are cutting down on eating out and socializing, postponing service/product upgrades, and cancelling subscriptions.
Despite these efforts, the survey suggests that Hong Kong residents are not fully convinced of the Territory’s ability to retain and attract people and businesses, with Gen Z-ers being the most pessimistic. It’s vital for the government and businesses to work together to restore trust and confidence among Hong Kongers. The survey suggests that brands need to offer products and services that deliver real value to their target consumers by understanding their expectations and delivering products and services with empathy.
Featured Image by Jeffrey Lee