Hong Kongers Asia's most optimistic luxury spenders

Locals plan to spend a whopping HK$34,055 in the coming months.

Hong Kong is the most optimistic market in the Asia/Pacific region in terms of luxury spending outlook, with three quarters of respondents planning to spend the same or more on luxury shopping in the coming months, ahead of China which came in second and is typically seen as one of the region’s key markets for luxury goods, a recent MasterCard Worldwide survey reveals.

In a city renowned for its shopping experiences, Hongkongers are among the top three luxury shoppers in the Asia/ Pacific region when it comes to spending power, ownership and intention to shop.

Local consumers outshine the majority of their counterparts in the region in terms of luxury spending power. They plan to spend on average HK$34,055 (US$4,366) on luxury goods in the coming months, much higher than the regional average (HK$27,800/ US$3,569) but behind China (HK$40,147/ US$5,147) and Japan (HK$36,520/ US$4,682).

The city also sees the third highest percentage (41%) of consumers who intend to own any luxury goods valued above HK$7,800 (US$1,000) in the coming months, after China (57%) and Thailand (46%). Also, one in two local consumers own at least one luxury item worth more than HK$7,800 (US$1,000), ranked second in Asia/Pacific together with Thailand but after China.

In terms of Hongkongers’ favorite luxury products, designer clothes and leather goods top the chart with 41% polled claiming to currently own at least one of these items. Next on the list are designer watches (40%) and jewelry (37%).

Ling Hai, division president, Greater China, MasterCard Worldwide, said, “With a passion for quality and luxury, Hongkongers have always been savvy luxury shoppers. And with some of the most appealing luxury shopping experiences on offer here, it is hardly surprising that local consumers are so optimistic about their luxury shopping in the coming months.”

When it comes to shopping for their favorite luxury goods, one in five (24%) Hong Kong respondents buy on impulse. Yet the majority (47%) are not spontaneous consumers, tending to think over it and buy it within a month of first deciding on the item. Surprisingly, luxury shopping behavior is similar across gender and age groups. And local consumers are just as likely to purchase luxury goods for no special reason as for a special occasion like a birthday or anniversary.

The survey also reveals that most (65%) consumers prefer buying luxury goods in Hong Kong during sales periods. In fact, only 15% will buy these products locally at full price. Advertisements (55%) are local consumers’ main source of information to buy luxury goods, followed by recommendations from friends (44%) and mailing lists or catalogues (40%). Credit cards are the most popular (89%) method of payment.

The latest MasterCard survey on Consumer Purchasing Priorities – Luxury Shopping was conducted between April and June 2012 and involved 6,904 consumers in 14 markets in Asia/Pacific[1]. Data collection was via internet surveys, personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary. The Index and its accompanying reports do not represent MasterCard financial performance.