Holmes Report 20 Mar 2016 // 6:33PM GMT
While consumer confidence in mainland China has remained steady with further growth expected, it has seen another drop in Hong Kong, according to the China Luxury Forecast from Ruder Finn and Consumer Search Group, a leading market research company.
The survey found that 42 percent of consumers in mainland China are looking to spend more on luxury items across all categories, but in Hong Kong this figure has fallen to just 25 percent, a decline from 2015's figure of 30 percent.
Growing wealth has led to consumers broadening their international horizons, with spend on travel remaining the number one category of luxury for both Mainland Chinese and Hong Kong consumers. In mainland China, 53 percent say they intend to spend more on luxury travel in the coming year, up from last year's figure of 50 percent.
Meanwhile, e-commerce continues to represent a major opportunity for luxury brands, with online purchases amounting to 26 percent and 20 percent of luxury spending by mainland Chinese and Hong Kong customers respectively. Accessories and beauty are the favored products, with official brand websites the most preferred digital channels.
Hong Kong and China customers also value 'Chinese' elements differently when it comes to purchasing products or services. A majority 58 percent of mainland China respondents said that 'embedded Chinese elements' were 'extremely or very important', compared to sentiment in Hong Kong which barely reached double figures at just 11 percent.
A majority (55 percent) of Chinese consumers said they appreciated "elements symbolizing good luck," compared to only 25 percent of Hong Kong consumers. Meanwhile, the Chinese element most often valued by Hong Kong consumers (44 percent) was the reflection of Chinese heritage, which was also the second most appreciated element among Chinese consumers (52 percent of respondents).