Hong Kong residents are not immune to the pall cast by the current global economic slowdown and rising inflation.
This year, consumer confidence in Hong Kong has slipped to the lowest level in two years, Nielsen reported Thursday. Hong Kong’s Nielsen Confidence Index has fallen to 109 in 2008 — from 118 in 2007.
That trend is forcing Hong Kong residents to change their lifestyles. According to the most recent Nielsen Consumer Confidence study, 53% of people in Hong Kong are less willing to spend in the next 12 months — up from 39% in 2007. Two-thirds of Hong Kong residents also reported they are saving discretionary income, rather than spending it.
In general, Hong Kong residents reported they are cutting non-essential purchases and seeking out less-expensive alternatives when shopping for staple items.
In the last three months, spending on clothing, shoes, and accessories per capita dropped by 26% in Hong Kong, according to Nielsen. Per capita spending by Hong Kong residents on luxury items declined by 33% during the same time period.
Meanwhile, at grocery stores, Hong Kong residents are increasingly opting for less-expensive frozen meat and frozen food — rather than fresh foods, according to Nielsen. Many have also reduced their spending on non-essential beverages, snacks, and confectionery items.
View the full press release.
Read The Standard’s coverage of Nielsen’s findings.