How Hong Kong can remain a shopping destination for GBA travellers
Survey reveals 10%-15% of GBA travellers will spend less in HK in the next 3 years.
Hong Kong could lose its sought-after tole as a shopping hub for Greater Bay Area (GBA) travellers, McKinsey & Company warned.
In a report, McKinsey said neighbouring cities are catching up quickly with Hong Kong.
“Hong Kong firms will need to improve service quality, deliver better digital experiences, and better connect with the rest of the Greater Bay Area, to continue wooing shoppers,” McKinsey said.
Whilst interest in shopping in HK remains strong amongst GBA travellers in 2023, McKinsey said this would not be the case in the years to come.
According to the report, 85% of GBA travellers cite shopping and sightseeing as their main purpose for travelling to HK and average spending on shopping is expected to reach RMB 36,400 per traveller.
In the next three years, however, 10% to 15% of consumers will spend less in Hong Kong.
“They will instead choose Hainan or Macau for luxury shopping, and ‘daigou’ for cosmetics, health supplements, and infant formula,” MicKingsey said.
To better position itself as a shopping hub, McKinsey said shops in Hong Kong must establish a pan-GBA presence, adding that 45% of consumers are more likely to buy from an HK brand that has GBA branches.
“Hong Kong’s main advantages are anchored around products, such as access to the latest trends (61%), better product safety (60%), and higher quality products (59%). Service quality and digital experience are falling behind,” McKinsey added.
How ESG is measured in valuations and how enhanced green technology helps companies with purpose