Nearly 3 in 4 shoppers choose local brands for safety, reliability

Preference is strongest in airlines (78%) and food and beverages (71%). 

Hong Kong brands retain an advantage in consumer trust, with 74% of local consumers citing safety and reliability as reasons for choosing them, according to a report by KPMG China and GS1 Hong Kong.

The survey found that 61% of consumers in other Greater Bay Area (GBA) cities also choose Hong Kong brands for their safety and reliability.

Amongst local consumers, preference for local brands was particularly strong in airlines (78%) and food and beverages (71%).

KPMG said Hong Kong brands would need to combine their established reputation for reliability with greater innovation, competitive pricing, and faster execution as Mainland competitors strengthen their safety and reliability credentials.

Chinese Mainland brands were primarily associated with value for money, cited by 81% of local consumers. 

Only 39% chose Mainland brands for safety and reliability, whilst 33% cited higher quality and 31% pointed to brand reputation, the report added.

In other GBA cities, 64% of consumers chose Mainland brands for value for money, 58% for safety and reliability, and 50% for brand reputation.

Meanwhile, value for money remains a priority for 73% of Hong Kong consumers, compared with 45% in other GBA cities.

The difference was also evident amongst older consumers aged above 55, with more than half (57%) of the city’s silver shoppers identifying primarily as value shoppers, compared with 23% in other GBA cities.

Alice Yip, Partner and Head of Consumer & Retail, Hong Kong SAR at KPMG China, said retailers need to account for differences in consumer preferences across markets.

“Hong Kong’s silver shoppers prioritise competitive prices, while those in other GBA cities place greater emphasis on brand reputation and shopping experiences,” Yip added.