Image courtesy of Peninsula Hotels
Consumer confidence in Mainland China is showing signs of growth, while Hong Kong consumers are expected to be more conservative in their luxury spending, according to a new report by Ruder Finn and the Consumer Search Group.
Forty-two percent of Mainland consumers expect to raise their luxury spending in 2016, but just 25 percent of Hong Kong residents say the same, whereas 30 percent said they would be spending more in 2015. However, while Hong Kong consumers may be curbing their spending, they are still interested in exploring new luxury brands and services, and the luxury industry should not discount the island.
?While demand for luxury remains strong in Mainland China, Hong Kong luxury consumers are showing lesser intent in luxury purchase,? said Simon Tye, executive director of CSG Hong Kong. ?Hong Kong customers are still interested in discovering new luxury brands and experiences,? he said. ?They are very discerning customers who know and appreciate good quality products.?
The 2016 China Luxury Forecast is based on a survey of 1,040 consumers from Mainland China and 301 from Hong Kong. Average annual household income on the mainland was 833,509 renminbi, or $128,850 at current exchange rates, and for Hong Kong respondents was 957,006 Hong Kong dollars, or $123,414.
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