Treat yourself: Hong Kong’s wealthy buy more luxury items after COVID

Around 48% are inclined to buy more high-end goods after the pandemic.

Around 48% of high-income Hong Konger said they tended to buy more luxury items after the COVID-19 pandemic.

In its 2021 China Luxury Forecast, Ruder Finn and Consumer Search Group surveyed 1,500 respondents from China and 500 from Hong Kong each with an annual household income of RMB 1.34m and HK$1.009m.

“Respondents’ descriptions of their own behavioral changes since the pandemic reflected the impact of COVID-19 on consumption mindsets, purchasing patterns, and lifestyles among luxury consumers,” the report read.

Some 33% said they spent more on luxury goods in 2020 than they had planned; whilst nearly half, or 49%, said that they will likely buy more luxury items as a way to “treat themselves better.”

The pandemic also led to an increase in the number of consumers that accessed digital channels in buying luxury goods with 63% in Hong Kong saying they started using after COVID-19 started.

Consumer confidence in Hong Kong has also returned with 33% of the respondents expressing intent to spend more on luxury goods in the next 12 months, which is around its pre-pandemic level.

Meanwhile, 28% said they would reduce spending, up from 20% before the pandemic.

Hong Kong maintained its status with 68% of respondents both from Mainland China and Hong Kong perceiving it still as an Asian luxury hub.