Hong Kong consumers expect a unified retail experience
42% Of Hong-Kongers are shopping online more now
The COVID-19 pandemic has shaken up the retail sector and forced an abrupt change in Hong-Kong consumers' shopping habits and expectations, according to research conducted by Opinium Research and commissioned by global payments platform provider Adyen.
Hong Kong saw one of the biggest shifts to online shopping globally, with 42% of Hong-Kongers saying they had shopped more online during the pandemic - compared to 33% globally. With pandemic-related restrictions easing, consumer behaviours and expectations have changed permanently, and retailers will need to evolve to stay competitive in the new normal.
The 'Adyen Agility Report' was based on insights from over 25,000 consumers across 16 markets, including 1,000 in Hong Kong, to understand what people expect from shopping and dining experiences today. It found that the pandemic did little to dent Hongkongers' preference for in-store shopping, as 66% said they prefer to shop in a physical store, second only to Australia.
Although Hongkongers prefer traditional retail, they also like an integrated online-to-offline shopping experience, as 76% said they prefer to pay with an in-store app.
Retailers therefore need to keep up with payments trends as 38% of Hongkongers reported leaving a store without buying items because the retailer wouldn't let them pay how they prefer to.
"Consumers in Hong Kong love their retail shopping, but have high expectations when it comes to payment experiences. Contactless payments have been popular in Hong Kong for a long time, and shoppers expect payments to be fast, easy and convenient," said Warren Hayashi, President, Asia Pacific at Adyen. "Retailers need to have a unified shopping experience across physical and digital platforms to retain the new customers they won during the pandemic. Expectations have shifted and options have increased as more retailers add online platforms. To thrive, retailers will need to maintain or exceed these new expectations and adopt a seamless, omnichannel approach."
Consumers have increasing multi-channel expectations
According to the research, 47% of Hongkongers said they would continue to shop online more than they did before the pandemic.
Some 50% used shopping apps more during the pandemic than they did previously, and 32% said they frequently make purchases on social media channels.
When shopping online 76% of Hongkongers prefer to shop with retailers they're already familiar with.
With all these new trends tradition is still important in Hong Kong. The report found that 61% would shop at retailers they deem to be important heritage or traditional brands to see them survive, and 71% will shop more with retailers located near them because they want them to stay open.
But stores can also attract and keep customers with special incentives, as 81% say they prefer to shop at stores with a loyalty program.
Consumers moved online during the pandemic
Amid the COVID-19 outbreak 43% of Hongkongers said they weren't comfortable trying on items that other people had touched, and 46% were concerned about queuing next to strangers.
Some of that activity has shifted to online shopping, but 43% of Hongkongers report they are watching their spending due to economic uncertainty.
The new normal retail experience is Unified
To capitalise on these new customer behaviours, retailers will need to focus on delivering seamless and secure omnichannel experiences through unified commerce. The demand is there from consumers, as the majority (79%) of Hongkongers believe retailers should maintain a cross channel approach following the pandemic, even when stores open again.
Additionally, retailers should also be aware of the following to cater to the new demands and expectations of Hong Kong consumers:
- Expectations are higher now
Overall retailers have been agile in adapting to the pandemic, and 69% of Hongkongers now have higher expectations of retailers as they proved they could adapt quickly to offer new services. Retailers now need to maintain the high standards they have set. - Ease of use is critical
Customers want ease of use, so ahead of the busy shopping peaks of Christmas and Chinese New Year, retailers would be wise to implement the right technology that will help customers easily navigate their online offerings. If not, 73% of Hongkongers said they would not shop with a retailer whose website or app are difficult to navigate. - Improving loyalty
Retailers should consider changing how they currently offer their loyalty and rewards programmes, as 74% of consumers believe those being offered to them can be improved.
The report has been made available for download from Ayden's web site, here: https://www.adyen.com
Sources: Adyen / The Marketing Factbook.
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