Middle class mainlanders profitable targets for Hong Kong businesses

HK firms should focus on product and service quality.

A new eight-city survey published by the Hong Kong Trade Development Council (HKTDC) shows that mainland middle class
consumers' demand for quality improvements, including choices in online shopping, has become more powerful. Their desire to try out new things and the pursuance of finer tastes and personal style is evident in their consumption behavior.

"The mainland middle class likes to use imported or joint-venture-brand products," said HKTDC Deputy Director of Research (Greater China) Pansy Yau. "This provides considerable business opportunities to Hong Kong companies, whether they are building their own brands or bringing in suitable foreign ones."

Overall, mainland middle class consumers have positive perceptions of Hong Kong. They said Hong Kong is a fashion capital and government oversight is stricter.

They also believe Hong Kong companies are able to produce safe and reliable products of fashionable design and good quality.

Among the respondents, 84% agree that "Hong Kong is the place of origin of fashion trends and the trendsetter". And 84% of respondents indicate that "Hong Kong is the hub of the world's latest fashion trends" while 50% agree that "my outfits/lifestyle/pastimes are influenced by Hong Kong trends."

The survey showed that 81% of respondents have bought international brands in the past year, and 76% agreed with the statement "I give first priority to quality".

In addition, 80% have indicated they have made excursions to neighboring cities in the past year and as many as 85% have shopped online.

The survey reveals that the mainland middle class is still enthusiastic about international brand-name products. Among respondents, 85% have bought international branded products in the past year, with garments topping the category (74%).

They are also inclined to buy branded products, with more than half (52%) of respondents agreeing with the statement "I prefer using well-known branded products even though they are more expensive."

Among branded products, middle-class consumers generally prefer imported brands and J-V brands, with 60% agreeing that "I prefer joint-venture products to domestic products even though both are produced on the mainland."

Mainland middle-class consumers are also paying more attention to quality, with 76% of respondents agreeing that "I give first priority to quality," indicating that consumers are becoming more sophisticated regarding "authenticity" and "quality of after-sale service." Of respondents, 68% agree that "sales staff knowledge about the product/service is very important to me in making my buying decision".

Mainlanders’frequency of buying organic products has increased significantly as 76% of respondents agree that "I am willing to pay more for green products."