Hong Kong consumers delay big purchases amidst low confidence

They are now prioritising their personal well-being.

Consumer confidence in Hong Kong is currently at a low point, mirroring broader trends across Asia, according to Adrian Lo, Head of Business Consulting at Ipsos Hong Kong. 

Based on findings from Ipsos' Global Trends report, Lo highlighted that only 26% of respondents in Hong Kong expressed optimism about the future. 

“The complex environment influenced by global geopolitical factors, economic pressures, and technological investment advancement has led to low consumer confidence and optimism,” Lo explained. 

He pointed out that this level of confidence is lower compared to other APAC regions, particularly in developing economies. This is causing consumers in Hong Kong to delay large purchases and adopt more frugal spending habits when it comes to discretionary items.

Lo emphasised that many individuals in Hong Kong are shifting their focus to areas they can control, such as personal well-being, family, and their immediate environment. This shift reflects a growing “me first” mindset, where autonomy and simplicity are prioritised as key coping mechanisms.

According to Ipsos’ report, 79% of respondents in Hong Kong identified autonomy as a core value, which is particularly pronounced among Gen Z and millennials, who view purchasing decisions not just in terms of ownership but as an opportunity to express individuality.

“Our data shows that 55% of Hong Kong respondents, particularly those in the Gen Z and millennial age groups, prefer products or experiences that they believe will look good on social media,” Lo explained. 

Lo also addressed the issue of low trust in institutions and business leaders, another key finding from the report. “Globally, only 44% of people trust business leaders to tell the truth, and in Hong Kong, the number is even lower at 37%,” Lo said. He noted that this lack of trust is particularly evident among older individuals and low-income groups.

To rebuild trust, Lo emphasised the importance of businesses engaging directly with customers and understanding their concerns. “Businesses need to demonstrate genuine impact, whether it’s supporting local businesses, investing in community projects, or creating opportunities that directly benefit key demographics,” Lo said.