John Lee Ka-Chiu Discusses Experiential Consumption and the Future of Hong Kong Retail
Shifting Consumption Patterns and Retail Challenges
Chief Executive John Lee Ka-Chiu emphasized that preventing Hongkongers from shopping in mainland China is unrealistic. He noted that the current trend reflects a significant shift in spending habits, encouraging retailers to embrace experiential consumption as part of their strategies. Retail sales in Hong Kong have faced a considerable decline, prompting Lee to call for innovation and adaptability in the retail market.
Government Initiatives to Support Retail
Lee announced various measures to stimulate local consumption, including the expansion of local events and the establishment of popular photo spots across the city. He pointed to the challenges posed by the strength of the US dollar and the competitive appeal of cities like Shenzhen. Despite these hurdles, he highlighted the efforts of the government to reinvigorate retail through financial support programs like the BUD Fund, aimed at helping businesses adapt to the new market dynamics.
Insights from Market Experts
Michael Cheng, leader of PwC's consumer markets team, elaborated on the forces affecting Hong Kong's retail landscape. He noted the growing preference for experiential and cultural consumption which is reshaping how visitors engage with Hong Kong's market. Strategies fostering digital transformation are becoming increasingly vital for local retailers looking to thrive in a competitive environment.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.